EU – October 27, 2026 -- The European Securities and Markets Authority (ESMA) has defined the conditions that providers and users of post-trade risk reduction (PTRR) services must meet for certain OTC derivative transactions to be exempt from the clearing obligation under EMIR 3.
ESMA's final report sets requirements for PTRR providers and the exemption
The final report specifies the elements and requirements of PTRR services. It covers the information provided to participants, how exercises are carried out, the controls providers must have in place, record-keeping, and how use of the exemption will be monitored.
ESMA says the rules are meant to facilitate use of PTRR services. They also aim to prevent the exemption from being used to circumvent the clearing obligation, keeping its use within the conditions laid down in EMIR 3.
Rules build on existing market practice to limit new burdens
ESMA states that the final rules build on existing market practices. They avoid adding requirements where existing rules already meet the relevant objectives, in line with the regulator's simplification and burden reduction goals.
PTRR services help market participants manage their derivatives portfolios and reduce risks, which ESMA says contributes to safer and more resilient derivatives markets.
European Commission endorsement is the next step
The draft Regulatory Technical Standards will now go to the European Commission for endorsement under the standard review process.