EMIR 3.0: The Active Account Requirement (AAR)
With the entry into force of EMIR 3.0 on 24 December 2024, affected counterparties will face changes this year. As with the existing EMIR regulations, the aim of the European Union is to strengthen the stability of the financial markets and increase transparency in derivatives trading.
EMIR 3.0 brings with it a number of significant changes:
- Active Account Requirement (AAR): Verpflichtung für bestimmte Marktteilnehmer, ein aktives Konto bei einer EU-CCP zu führen.
- Clearing changes: New requirements for the clearing of OTC derivatives.
- Intragroup transactions: Revised rules for intragroup transactions.
- Counterparty categorisation: New classifications for market participants.
- Reporting obligations: Stricter reporting requirements.
- Risk mitigation obligations: Stricter requirements to reduce systemic risks.
One of the most significant changes is the obligation to maintain an active account (Active Account Requirement, AAR). This regulation requires certain market participants to adapt their clearing strategies and at the same time opens up opportunities for more efficient process organisation.
For companies that fall within the scope of the AAR, this means Act now to meet the regulatory requirements in good time and optimise their processes at the same time!
What is the obligation to maintain an active account (AAR)?
The AAR mandates that specific Financial Counterparties (FCs) and Non-Financial Counterparties (NFCs) maintain at least one active account at an EU Central Counterparty (CCP) for designated categories of derivative contracts. Additionally, certain counterparties must ensure that a representative number of trades are cleared through these accounts. This requirement is designed to reinforce the use of EU-based clearing infrastructure, thereby reducing systemic risk and strengthening the resilience of the European financial market.
Compliance Deadline
Market participants must comply with the AAR by June 25, 2025. Failure to meet this deadline could result in regulatory penalties and restrictions on trading activities.
Scope of AAR
The AAR applies to specific categories of derivative contracts and counterparties:
Derivative Contracts Covered
The requirement applies to the following over-the-counter (OTC) derivatives:
- Euro-denominated interest rate derivatives
- Polish zloty-denominated interest rate derivatives
- Euro-denominated short-term interest rate derivatives
Counterparty Obligations
The requirement applies to FCs and NFCs that meet both following criteria:
- They are subject to the EMIR clearing obligation
- They exceed EUR 3 billion in gross notional value in at least one of the designated derivative categories, measured across all relevant transactions
Implications for Market Participants
The introduction of the AAR will require impacted counterparties to review their clearing arrangements and, where necessary, establish or enhance their relationships with EU-based CCPs. Firms should assess their current trading volumes, identify whether they meet the thresholds, and ensure compliance with the requirement well ahead of the 2025 deadline.
Proactive preparation will be key to avoiding last-minute operational and regulatory challenges. Market participants are encouraged to engage with their clearing service providers and regulators to ensure a smooth transition under EMIR 3.0.
The final technical regulatory standard on the Active Account Requirement is currently still being finalised by ESMA. So far, only a consultation paper has been published, which provides initial guidance. Irrespective of this, the deadline for implementation remains 25 June 2025 – affected companies should therefore start their preparations now.
Conclusion
The obligation to maintain an active account is a central component of EMIR 3.0 and reflects the EU’s endeavour to increase the stability of financial markets and reduce dependence on clearing houses in third countries. This obligation is more than a regulatory requirement – it can be a catalyst for better processes and more stable market structures.
As the compliance deadline approaches, firms should act now to assess their obligations and implement the necessary steps to comply.
The countdown is on: are you ready?
Be | Shaping the Future is at your side as a competent partner and supports you with comprehensive process consulting and the customised software solution tecconTR to enable you to implement EMIR 3.0 requirements efficiently and smoothly. Let us develop your strategy together – contact us today!
