meta_id 3299659

On July 6, 2026, the European Securities and Markets Authority (ESMA) published an interim report assessing the preliminary effectiveness of the Active Account Requirement (AAR), a measure introduced under the European Market Infrastructure Regulation 3 (EMIR 3) that entered into force on December 24, 2024. The AAR requires financial and non-financial EU counterparties with cleared positions above EUR 6 billion in over-the-counter interest rate derivatives (OTC IRD) and short-term interest rate (STIR) products to maintain active accounts and clear a representative volume of transactions at EU central counterparties (CCPs). ESMA developed this interim report in close cooperation with the European System of Central Banks (ESCB) and the European Systemic Risk Board (ESRB), and after consulting the Joint Monitoring Mechanism (JMM). The assessment aims to evaluate whether the AAR effectively mitigates financial stability risks arising from excessive reliance of EU counterparties on Tier 2 CCPs—specifically LCH Ltd SwapClear and ICE Clear Europe—offering services of substantial systemic importance. As of February 2026, approximately 500 entities across 89 groups had notified ESMA and national competent authorities (NCAs) of their AAR subject status, with nearly two-thirds exceeding the EUR 6 billion threshold. These notifying entities represent over 90 percent of notional held by EU entities in relevant OTC IRD and STIR markets. The report documents moderate but limited uptake of EU clearing, with notifying entities increasing their average share of clearing activity at EU CCPs during 2025, particularly among smaller entities. Initial margin data shows a gradual decline in the share posted at Tier 2 CCPs relative to EU CCPs, declining from 58 percent in Q4 2024 to 51 percent in Q4 2025. However, Tier 2 CCPs continue to dominate clearing in AAR-related products, in some cases accounting for more than 90 percent of cleared volumes. ESMA will develop a comprehensive assessment methodology by the end of 2026, potentially issuing a targeted data request to market participants. The final effectiveness assessment, including impact analysis of potential complementary measures, is scheduled for submission to the European Parliament, Council, and Commission in 2027.