ESMA Sets Conditions for Clearing Exemption on Post-Trade Risk Reduction
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.