PARIS, July 6, 2026 — The European Securities and Markets Authority (ESMA) has reported preliminary evidence that the European Union’s Active Account Requirement (AAR) under EMIR 3 is beginning to shift derivatives clearing activity toward EU-based central counterparties (CCPs), although systemically important third-country CCPs continue to dominate the market and the regulator says it is too early to draw definitive conclusions.
The Interim Report on the Effectiveness of the Active Account Requirement reviews implementation of the AAR during 2025 and early 2026. The requirement was introduced under EMIR 3 to mitigate financial stability risks arising from EU counterparties’ excessive reliance on systemically important third-country CCPs by requiring certain financial and non-financial counterparties to maintain active accounts and clear a representative number of transactions at authorised EU CCPs for specified over-the-counter interest rate derivatives and euro-denominated short-term interest rate derivatives.
Active Account Requirement implementation
According to ESMA, approximately 500 entities had notified the authority and their national competent authorities by February 2026 that they are subject to the AAR. While these entities represent only around one-quarter of the roughly 2,000 EU entities active in the relevant derivatives markets, they account for more than 90% of the gross and absolute net notional outstanding held by EU entities, indicating that the framework captures the overwhelming majority of systemic clearing activity.
Banks accounted for roughly half of all notifications, while France, Germany and the Netherlands recorded the largest numbers of notifying entities. ESMA also said transaction data reported under EMIR show that notifying entities increasingly opened and began using accounts at EU CCPs throughout 2025, particularly during the second half of the year as entities began complying with the Active Account Requirement. Feedback from national competent authorities and industry participants indicated that establishing active accounts generally proceeded without significant operational difficulties.
Early market impact
The regulator observed an increase in clearing activity at EU CCPs among notifying entities. The shift was most pronounced among smaller market participants, with some entities fully relocating their clearing positions from Tier 2 CCPs to EU CCPs. Larger institutions, particularly banks with outstanding notionals exceeding €100 billion, generally maintained more stable clearing patterns and continued to conduct substantial activity through Tier 2 CCPs.
Across products, ESMA reported modest gains in EU CCP market share, particularly in euro-denominated forward rate agreements (FRAs), euro over-the-counter interest rate derivatives (OTC IRDs), and Euribor short-term interest rate futures. By contrast, activity in €STR short-term interest rate futures and Polish zloty-denominated over-the-counter interest rate derivatives remained broadly stable.
The report also points to a gradual shift in risk exposures. The share of initial margin posted by EU clearing members at Tier 2 CCPs, relative to EU CCPs, declined from 58% in the fourth quarter of 2024 to 51% in the fourth quarter of 2025. ESMA cautioned, however, that this development cannot yet be attributed solely to the Active Account Requirement because margin levels are also influenced by broader market conditions, portfolio composition, netting effects and CCP risk models. The regulator said additional data and analysis will be required before drawing firm conclusions about changes in risk exposures.
Continued reliance on Tier 2 CCPs
Despite the early shift, ESMA said Tier 2 CCPs continue to dominate clearing across many AAR-related products, accounting for more than 90% of cleared volumes in some markets, indicating that EU counterparties remain highly dependent on third-country clearing services.
Industry participants also told ESMA that clearing location decisions continue to be driven primarily by liquidity, collateral costs, cross-product and cross-currency netting efficiencies, product availability and operational considerations rather than regulation alone. The report also notes that while the AAR is encouraging greater use of EU CCPs among entities within its scope, broader improvements in the attractiveness of EU clearing will also depend on participation by non-EU market participants and continued development of market liquidity.
Next steps
ESMA stressed that the findings remain preliminary because implementation of the AAR is still ongoing and important reporting data introduced under EMIR 3 will not become fully available until 2027. The authority said it will develop a dedicated methodology for assessing the effectiveness of the AAR, supported where necessary by additional data requests, before submitting a comprehensive assessment to the European Parliament, the Council and the European Commission in 2027.
The final assessment is also expected to examine whether any complementary measures or adjustments to the framework are necessary to further reduce the EU financial system’s reliance on systemically important third-country CCPs.
Why it matters
The Active Account Requirement is one of the central reforms introduced under EMIR 3 to strengthen the EU’s clearing ecosystem and reduce financial stability risks arising from EU counterparties’ excessive reliance on systemically important third-country CCPs. The measure forms part of the European Union’s broader strategy to expand domestic clearing capacity, strengthen financial market infrastructure and reduce systemic vulnerabilities associated with critical clearing services provided outside the bloc.
ESMA’s preliminary assessment suggests the framework is beginning to encourage greater use of EU CCPs, particularly among smaller market participants. At the same time, the regulator concludes that Tier 2 CCPs remain dominant across many key derivatives markets, indicating that structural market dependencies persist and that a definitive assessment of the reform’s effectiveness will require additional implementation time and more comprehensive data before the final review in 2027.
