The EBA has launched a public consultation on draft Guidelines concerning the authorisation of initial margin models (IMMs). These guidelines aim to establish a harmonised framework across the EU for the authorisation process of IMMs, which are used by financial counterparties to calculate initial margin requirements for non-centrally cleared derivative transactions. The consultation document outlines the proposed criteria and procedures for competent authorities when assessing applications for authorisation.

Financial institutions, particularly those involved in derivative markets, should review these draft guidelines and prepare to submit feedback by the deadline of June 17, 2026. The EBA encourages detailed responses addressing the proposed requirements and their practical implications. Failure to comply with the final guidelines, once published, could impact the ability of firms to use their internal models for margin calculations, potentially leading to increased capital requirements or operational adjustments.