pc
nid 94400
Aug 04, 2026
arahman@vixio.com
European Union
Document Library - European Insurance and Occupational Pensions Authority
financial services
89% of draft length
draft in Generated
Generated
1704 charsEuropean Insurance and Occupational Pensions Authority Publishes Final Report on Uncleared Over-the-Counter Derivatives Standards
On August 3, 2026, the European Insurance and Occupational Pensions Authority (EIOPA) published a final report on draft Regulatory Technical Standards (RTS) concerning uncleared over-the-counter (OTC) derivatives. The report proposes amendments to simplify the bilateral margin requirements established under the European Commission's Delegated Regulation (EU) 2016/2251.
The proposed amendments target the bilateral margin framework applicable to counterparties subject to initial margin requirements that fall below the €8 billion threshold for exchanging initial margin under the European Market Infrastructure Regulation (EMIR). The simplification aims to reduce compliance complexity for smaller market participants while maintaining appropriate risk management standards. By streamlining the bilateral margin requirements, the RTS seeks to make the regulatory framework more proportionate and accessible for entities that do not meet the higher threshold for mandatory initial margin exchange.
The final report represents the culmination of the European Supervisory Authorities' work on this technical standard. The proposed RTS will now proceed through the European Commission's formal adoption process. Market participants, particularly those operating below the €8 billion threshold, should monitor developments regarding the implementation timeline and any subsequent guidance from EIOPA and other relevant supervisory authorities. The final report is available for download from EIOPA's document library.
**Reference:**
European Insurance and Occupational Pensions Authority. Final Report on draft RTS on uncleared OTC derivatives. August 3, 2026. Available at: https://www.eiopa.europa.eu/
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1517 charsEuropean Supervisory Authorities Adopt Final Report on Uncleared Over-the-Counter Derivatives Standards
On August 3, 2026, the European supervisory authorities (ESAs) adopted a final report on draft Regulatory Technical Standards (RTS) concerning uncleared over-the-counter (OTC) derivatives.
The proposed amendments aim to simplify the bilateral margin framework for counterparties subject to initial margin requirements and below the €8bn threshold for exchanging initial margin under the European Market Infrastructure Regulation (EMIR) .
In the current framework, counterparties below the threshold are exempt from exchanging initial margin on new uncleared OTC derivative contracts but continue to exchange initial margin on existing contracts. Under the proposed amendments, counterparties would no longer be required to exchange initial margin on either new or existing contracts if the contracts are below the threshold.
The simplification aims to reduce compliance complexity for smaller market participants while maintaining appropriate risk management standards. By streamlining the bilateral margin requirements, the RTS seeks to make the regulatory framework more proportionate and accessible for entities that do not meet the higher threshold for mandatory initial margin exchange.
The final report has been submitted to the European Commission together with the draft RTS for endorsement. Following the European Commission's review and adoption process, the RTS will be subject to scrutiny by the European Parliament and the Council before being published in the Official Journal of the European Union.