ESMA consultation on RTS for post-trade risk reduction services under EMIR 3

The European Securities and Markets Authority (ESMA) has published a consultation on draft regulatory technical standards (RTS) specifying the circumstances in which transactions resulting from post-trade risk reduction (PTRR) services will be exempt from the clearing obligation under EMIR 3. Amongst other things, the draft RTS establish requirements for the types of services which are eligible for the PTRR exemption (namely compression, portfolio rebalancing and basis risk optimisation) as well as operating conditions for PTRR service providers. The consultation separately considers the PTRR services and transactions to be recorded for the purposes of an exemption from transparency requirements, trading and best execution introduced under the EU Markets in Financial Instruments Regulation (MiFIR) Review (although the MiFIR considerations do not form part of the draft RTS). The deadline for responses is 20 April, after which ESMA expects to submit final draft RTS to the European Commission in Q4.

Return to main website.