ESMA sets out conditions for post-trade risk reduction clearing exemption under EMIR 3

• ESMA outlined conditions providers and users of post-trade risk reduction (PTRR) services must meet for certain OTC derivative transactions to be exempt from the clearing obligation under EMIR 3.
• The final report also sets safeguards for provision of these services and monitoring of the exemption's use.
• The rules build on existing market practices and aim to avoid additional requirements where existing rules already meet the objectives.
• The draft Regulatory Technical Standards will now be submitted to the European Commission for endorsement.

The European Securities and Markets Authority has outlined the conditions that providers and users of post-trade risk reduction services need to meet for certain OTC derivative transactions to be exempt from the clearing obligation under EMIR 3.

ESMA sets out conditions for post-trade risk reduction clearing exemption under EMIR 3

The new rules, published in ESMA's latest final report dated 20/10/2026, also establish safeguards for the provision of these services and the monitoring of the use of the exemption.

Scope of the final report

The final report specifies the elements and requirements of PTRR services, including the information to be provided to participants, how exercises are carried out, the controls that providers should have in place, record-keeping and how the exemption will be monitored.

ESMA said the goal is to facilitate the use of PTRR services and ensure the exemption is used under the conditions laid down in EMIR 3 and does not lead to misuse of the clearing obligation.

Existing practice and burden reduction

The final rules build on existing market practices and aim to avoid introducing additional requirements where existing rules already meet the relevant objectives, in line with ESMA's simplification and burden reduction objectives.

ESMA said PTRR services help market participants manage their derivatives portfolios and reduce risks, contributing to safer and more resilient derivatives markets.

Next steps

The draft Regulatory Technical Standards will now be submitted to the European Commission for endorsement, in line with the standard review process. The report carries the reference ESMA74-1049116226-981.