ESMA supervisory briefing on AAR under EMIR 3

The European Securities and Markets Authority (ESMA) has published a supervisory briefing on the representativeness obligation under the active account requirement (AAR), setting out its supervisory expectations for counterparties subject to the AAR. The AAR, under the revised European Markets Infrastructure Regulation (EMIR), requires in scope counterparties to clear a representative volume of trades through their active accounts at EU central counterparties (CCPs). These trades must cover the most relevant derivative sub categories and mirror the activity those counterparties currently clear at Tier 2 CCPs.

The briefing provides guidance on how counterparties should identify the most relevant derivatives sub‑categories and how they should report trades and comply with related reporting obligations, including a worked example. ESMA states that counterparties subject to the AAR representativeness obligation are expected to follow the guidance to meet their regulatory requirements.

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