ESMA recommends clearing obligation for pension funds to start in June 2023


The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, has sent a letter to the European Commission (EC) providing its views on the clearing obligation for Pension Scheme Arrangements (PSA) and recommending the end of the current exemption from the clearing obligation with a one year implementation period.

ESMA, following its assessment, concludes that PSAs are, to a large extent, operationally ready to clear their OTC derivatives but they should be given sufficient time before a clearing obligation for PSAs takes effect. Therefore, ESMA recommends to start applying the clearing obligation to PSAs from 19 June 2023.

The proposed start of the clearing obligation may also feed into the European Union’s broader clearing strategy, an ongoing endeavour to build clearing capacity within the Union and to reduce reliance on UK CCPs, to which ending the exemption can contribute.

Next steps

Based on ESMA’s recommendation, the EC will decide on whether to grant the suggested extension of the exemption until June 2023.


Further information:

Dan Nacu-Manole

Communications Officer

   +33 (0)1 58 36 52 06


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