ESMA Consults on EMIR 3 Post-Trade Risk Reduction Services

ESMA News

Published February 26th, 2026

Detected February 27th, 2026

Summary

The European Securities and Markets Authority (ESMA) has launched a consultation on the requirements for post-trade risk reduction (PTRR) services under EMIR 3. The consultation seeks feedback on draft Regulatory Technical Standards (RTS) that define conditions for PTRR services to benefit from a clearing obligation exemption.

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What changed

ESMA is seeking feedback on proposed Regulatory Technical Standards (RTS) concerning post-trade risk reduction (PTRR) services under EMIR 3. These RTS aim to establish the conditions under which PTRR services, such as compression, portfolio rebalancing, and basis risk optimisation, can qualify for an exemption from the clearing obligation for OTC derivative transactions. The consultation covers aspects like transparency, algorithm safeguards, execution, controls, record keeping, and monitoring by authorities.

Regulated entities, particularly those involved in derivatives trading and risk management, should review the consultation paper and submit feedback by April 20, 2026. The proposed standards are designed to prevent circumvention of the clearing obligation while simplifying processes and reducing burdens by leveraging existing practices. The draft RTS will be submitted to the European Commission in Q4 2026, indicating a potential future implementation of these requirements.

Source document (simplified)

ESMA consults on post-trade risk reduction services under EMIR 3

Post Trading 26/02/2026 The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has launched a consultation on the requirements for how post-trade risk reduction (PTRR) services can benefit from the conditioned exemption from the clearing obligation introduced under the European Market Infrastructure Regulation (EMIR 3).

ESMA is seeking feedback on several elements of the framework for the PTRR service providers to operate under the exemption, including transparency towards participants, algorithm safeguards, execution of PTRR exercises, controls to be performed and record keeping. Finally, the consultation describes how monitoring should be conducted by the relevant authorities.

The draft Regulatory Technical Standards (RTS) set out the requirements that PTRR services must meet for over-the-counter (OTC) derivative transactions to qualify for the exemption from the clearing obligation. They focus on the three main service types in use in the market today: compression, portfolio rebalancing and basis risk optimisation.

The RTS are designed to ensure that the exemption is not used to circumvent the clearing obligation, while considering simplification and burden reduction objectives by leveraging on current practices since the start of the EMIR 3 regime.

Next steps

Stakeholders are invited to provide feedback on the proposals set out in the consultation by 20 April 2026. The draft RTS will be submitted to the European Commission in Q4 2026.

Further information:

Cristina Bonillo

Senior Communications Officer
press@esma.europa.eu

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Related Documents

Download All Files Download Selected Files
| Date | Reference | Title | Download | Select |
| --- | --- | --- | --- | --- |
| 26/02/2026 | ESMA74-1049116226-877 | Consultation paper on the regulatory standards on the requirements for post-trade risk reduction services for the purpose of the clearing obligation exemption under EMIR | | |
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