EMIR 3.0 is Going Live
December 20, 2024
Key Takeaways
- EMIR 3.0 aims to improve the attractiveness of EU central counterparties (CCPs), encourage clearing in the EU and enhance the assessment and management of cross-border risks in the EU.
- Various aspects of EU EMIR are impacted, not only clearing. Of relevance to asset managers and funds are:
- the Active Account Requirement: the requirement for in-scope counterparties to open an active account at an EU CCP, to be able to clear certain specified derivative contracts through such account and, in some cases, for counterparties to conduct a minimum level of clearing activity in such derivatives at an EU CCP;
- changes to the clearing threshold calculations and to certain of the risk mitigation techniques; and
- further transparency, notification, monitoring and reporting requirements.
- Many of the EMIR 3.0 changes apply from 24 December 2024 but certain key aspects take effect later, notably (i) the changes to the clearing threshold calculations, which will not apply before December 2025, and (ii) the Active Account Requirement, with day one in-scope counterparties having until 25 June 2025 to comply.
- The EMIR 3.0 Directive3 was published at the same time and includes amendments to UCITS counterparty risk limits.
- Multiple related regulatory technical standards (RTS) are necessary to provide required detail in respect of EMIR 3.0. However, even in their absence, market participants are expected to comply with certain of EMIR 3.0’s requirements.
- The European Securities and Markets Authority (ESMA) has already published a Consultation Paper (including draft RTS) in respect of the Active Account Requirement and certain associated reporting requirements4.
Next Steps
Market participants should be considering if and how EMIR 3.0 will affect them.
For a deep dive into the changes and how they might impact you click here.
Footnotes
- See here and here for our related materials.
- Available here.
- Available here. That Directive will also enter into force on 24 December 2024 and Member States will have until 25 June 2026 to transpose it into national law.
- Available here and open until 27 January 2025. ESMA will organise a public hearing on 20 January 2025.
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