ESMA publishes preliminary findings on the Active Account Requirement and the first Annual Report of the Joint Monitoring Mechanism

Preliminary findings on the Active Account Requirement 

Based on available data, analytics and industry feedback, the Interim Report provides preliminary findings on the Active Account Requirement (AAR) implementation during 2025 and early 2026. 

The preliminary findings show that:

• As of February 2026, around 500 entities had notified ESMA and national competent authorities that they are subject to the AAR. 
• These entities represent a significant share of EU activity in relevant derivatives markets, with more than 90% of notional outstanding held by EU entities in the scope of the requirement. 
• Notifications are spread across most Member States, with particularly strong representation in France, Germany and the Netherlands, and banks accounting for around half of notifying entities. 
• In terms of impact, the report identifies early signs of increased clearing activity at EU central counterparties (EU CCPs), particularly among smaller entities, with some entities fully relocating their positions to the EU. 
• The findings also point to a gradual, but limited, shift in market shares from systemically important third-country central counterparties (Tier 2 CCPs) to EU CCPs in certain AAR-related products. 

Joint Monitoring Mechanism - Supporting coordinated cross sectoral oversight of the EU clearing landscape 

Together with the AAR interim report, ESMA has also published the first Annual Report of the Joint Monitoring Mechanism (JMM), which plays a key role in monitoring developments and assessing financial stability risks across EU CCPs, clearing members and clients. 

The Annual Report presents the outcomes of the joint cross-sectoral monitoring activities during its first year of operation in 2025. 

Key findings include:

• The results of the JMM’s AAR monitoring activities, which form the preliminary findings presented in the Interim Report.
• An analysis of broader cross-border developments beyond the AAR, with a particular focus on the United States. The analysis confirms considerable cross-border dependencies, reflecting the global nature of EU and US cleared markets and their participants. While these linkages support market efficiency, liquidity and risk sharing, they may also create channels through which shocks could propagate. 
• An assessment of trends affecting EU CCPs, highlighting the expansion of asset classes and products cleared in the EU and illustrating the capacity of EU CCPs to respond to evolving regulatory and market conditions.  
• A stocktaking exercise of existing EU-wide stress tests, with a view to explore synergies with aspects related to the broader EU clearing ecosystem.

Background

The Active Account Requirement, introduced under European Market Infrastructure Regulation (EMIR), is designed to mitigate financial stability risks stemming from EU entities’ excessive exposures to Tier 2 CCPs that provide clearing services of substantial systemic importance to the Union. 

Under EMIR, ESMA is required to assess the effectiveness of the AAR and prepare a report in close cooperation with the European System of Central Banks (ESCB) and the European Systemic Risk Board (ESRB), and after consulting the JMM.

Given the recent entry into force of the AAR and the remaining data gaps, ESMA will conduct the effectiveness assessment in two stages. This Interim Report constitutes the first stage, and its findings should be considered preliminary, without prejudice to the findings of the final comprehensive assessment to be conducted in 2027, when a more complete data set will be available. 

Next steps

As a next step, ESMA will develop a dedicated methodology to assess the effectiveness of the AAR, which will inform the second stage of the final assessment in 2027.

Further information:

Tayfun Yilmaz

Communications Officer
press@esma.europa.eu