Final report on the Regulatory Technical Standards on the requirements for Post-Trade Risk Reduction services for the purpose of the clearing obligation exemption under EMIR
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ESMA publishes its final report with the regulatory technical standards (RTS) setting the requirements for transactions resulting from post-trade risk reduction (PTRR) services, such as compression or portfolio rebalancing, to be exempt from the EMIR 3 clearing obligation. It includes safeguards against misuse of the exemption.
Key points
- Common conditions on market risk neutrality and risk reduction for compression, rebalancing and basis risk optimisation.
- Obligations for providers: transparency, algorithms, execution, controls, record-keeping and monitoring of the exemption.
- The final text is largely unchanged from the consultation and builds on existing market practice.
Who is affected
PTRR service providers (MiFID-authorised firms) and OTC derivatives counterparties subject to the clearing obligation.
Deadlines
Submitted to the Commission on 9 October 2026, which has three months to endorse the RTS.
Plain-language version
ESMA, the EU watchdog for stock markets and investment products, has set rules so that certain derivatives trades (contracts whose value depends on another asset) used only to reduce risk do not have to go through a clearing house, the middleman that makes sure both sides pay up. There are safeguards to stop abuse. The Commission has three months to approve them.
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Summary produced with artificial intelligence from the official publication. It may contain errors: always check the original document.
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