ESMA sets out clearing thresholds under EMIR 3

To reduce unnecessary complexity and burden, ESMA has: 

1. retained five CTs categories, avoiding additional categories or more granular thresholds; 

2. clarified the timing of calculation of positions, allowing counterparties to apply the new CTs during their usual assessment window or earlier, if they wish to benefit sooner from the new regime; 

3. enhanced stability and visibility in the mechanism triggering the review of the CT. 

Additionally, ESMA suggests increasing the thresholds in the commodity, interest rate and credit derivatives asset classes compared to what was proposed in the Consultation Paper published in April 2025. These adjustments reflect recent price developments, inflation and other relevant market factors while ensuring a proportionate coverage of the systemic risk. 

Although respondents to the consultation requested broader recognition of structured hedging arrangements, including virtual power purchase agreement (VPPAs), ESMA confirms that any change to the hedging exemption would require amendments at Regulation level and therefore cannot be addressed in these RTS. 

As a reminder, entities active in OTC derivative markets and exceeding one or more CTs are subject to additional requirements, notably the clearing obligation. 

Next steps

ESMA has submitted the final draft RTS to the European Commission for endorsement, following which they will be subject to adoption.