ESMA is seeking feedback on draft regulatory technical standards (RTS) concerning post-trade risk reduction services. These standards are intended to define the requirements for such services to qualify for an exemption from the clearing obligation under the European Market Infrastructure Regulation (EMIR). The consultation paper outlines the proposed scope and content of these RTS, aiming to ensure that risk reduction services genuinely contribute to mitigating systemic risk.

Affected entities, including financial counterparties and investment firms that provide or utilize post-trade risk reduction services, should review the consultation paper and submit their feedback by the specified deadline. The feedback will inform ESMA's finalization of these standards, which will have implications for the operational and compliance frameworks of firms seeking to benefit from the clearing obligation exemption. Failure to comply with the eventual RTS could result in the inability to claim the exemption, leading to increased clearing costs and operational burdens.