The European Securities and Markets Authority has launched a
consultation on how post-trade risk reduction services can use a conditioned
exemption from the clearing obligation under the European Market Infrastructure
Regulation 3.
The consultation also builds on ESMA’s
earlier work to simplify financial transaction reporting across MiFIR,
EMIR, and SFTR. Reporting overlaps currently require firms, including forex and
derivatives brokers, to submit the same transaction under multiple regimes.
ESMA estimates that about one-third of EMIR reports overlap
with MiFIR, with total industry costs between €1 billion and €4 billion
annually. Two simplification options are proposed, including a “report once”
model. Feedback on this aspect is open until 19 September 2025.
ESMA Seeks Feedback on PTRR Framework
The consultation presents draft Regulatory Technical
Standards (RTS) that define the conditions under which OTC derivatives executed
via PTRR services may qualify for the exemption.
ESMA is seeking input on several elements of the proposed
PTRR framework. These include transparency towards participants, safeguards for
algorithms, the execution of PTRR exercises, internal controls, and
record-keeping requirements. The consultation also outlines how national
competent authorities should monitor compliance
Compliance
In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a
In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a
Read this Term.
Stakeholders Can Comment on PTRR Framework
The draft RTS focus on three types of PTRR services
currently used in the market: compression, portfolio rebalancing, and basis
risk optimisation. ESMA said the standards are intended “to ensure that the
exemption is not used to circumvent the clearing obligation.” The framework is
also designed to reflect existing market practices since the start of EMIR 3
and to support simplification and burden reduction.
Stakeholders can submit feedback on the draft proposals
until 20 April 2026. ESMA
ESMA
European Securities and Markets Authority (ESMA) is an independent Authority of the European Union that is responsible for the safety, security, and stability of the European Unions’ financial system and is charged with protecting the public. The European supervisory authority for the securities sector, ESMA was established on 1 January 2011. The European Securities and Markets Authority is an independent EU authority based in Paris. It aims to contribute to the effectiveness and stability of t
European Securities and Markets Authority (ESMA) is an independent Authority of the European Union that is responsible for the safety, security, and stability of the European Unions’ financial system and is charged with protecting the public. The European supervisory authority for the securities sector, ESMA was established on 1 January 2011. The European Securities and Markets Authority is an independent EU authority based in Paris. It aims to contribute to the effectiveness and stability of t
Read this Term plans to submit the final RTS to the European
Commission in the fourth quarter of 2026.
ESMA Issues EU Algorithmic Trading Guidance
Separately, ESMA published a supervisory briefing to support
National Competent Authorities in supervising algorithmic trading under MiFID
II. The nonbinding guidance covers pre-trade controls, governance, testing,
outsourcing, and the use of artificial intelligence, with the goal of promoting
consistent oversight across the EU.
ESMA Publishes Final EMIR 3 RTS
In a separate but related update under EMIR 3, ESMA
has published its final report on clearing thresholds for OTC derivatives.
The revised framework updates calculation methods for cleared and uncleared
positions and adjusts thresholds across key asset classes.
Non-financial counterparties calculate positions based on
uncleared derivatives, while financial firms apply dual calculations. Changes
reflect market conditions, inflation, and systemic risk. Feedback influenced
the scope, but virtual power purchase agreements remain outside the RTS.
The European Securities and Markets Authority has launched a
consultation on how post-trade risk reduction services can use a conditioned
exemption from the clearing obligation under the European Market Infrastructure
Regulation 3.
The consultation also builds on ESMA’s
earlier work to simplify financial transaction reporting across MiFIR,
EMIR, and SFTR. Reporting overlaps currently require firms, including forex and
derivatives brokers, to submit the same transaction under multiple regimes.
ESMA estimates that about one-third of EMIR reports overlap
with MiFIR, with total industry costs between €1 billion and €4 billion
annually. Two simplification options are proposed, including a “report once”
model. Feedback on this aspect is open until 19 September 2025.
ESMA Seeks Feedback on PTRR Framework
The consultation presents draft Regulatory Technical
Standards (RTS) that define the conditions under which OTC derivatives executed
via PTRR services may qualify for the exemption.
ESMA is seeking input on several elements of the proposed
PTRR framework. These include transparency towards participants, safeguards for
algorithms, the execution of PTRR exercises, internal controls, and
record-keeping requirements. The consultation also outlines how national
competent authorities should monitor compliance
Compliance
In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a
In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a
Read this Term.
Stakeholders Can Comment on PTRR Framework
The draft RTS focus on three types of PTRR services
currently used in the market: compression, portfolio rebalancing, and basis
risk optimisation. ESMA said the standards are intended “to ensure that the
exemption is not used to circumvent the clearing obligation.” The framework is
also designed to reflect existing market practices since the start of EMIR 3
and to support simplification and burden reduction.
Stakeholders can submit feedback on the draft proposals
until 20 April 2026. ESMA
ESMA
European Securities and Markets Authority (ESMA) is an independent Authority of the European Union that is responsible for the safety, security, and stability of the European Unions’ financial system and is charged with protecting the public. The European supervisory authority for the securities sector, ESMA was established on 1 January 2011. The European Securities and Markets Authority is an independent EU authority based in Paris. It aims to contribute to the effectiveness and stability of t
European Securities and Markets Authority (ESMA) is an independent Authority of the European Union that is responsible for the safety, security, and stability of the European Unions’ financial system and is charged with protecting the public. The European supervisory authority for the securities sector, ESMA was established on 1 January 2011. The European Securities and Markets Authority is an independent EU authority based in Paris. It aims to contribute to the effectiveness and stability of t
Read this Term plans to submit the final RTS to the European
Commission in the fourth quarter of 2026.
ESMA Issues EU Algorithmic Trading Guidance
Separately, ESMA published a supervisory briefing to support
National Competent Authorities in supervising algorithmic trading under MiFID
II. The nonbinding guidance covers pre-trade controls, governance, testing,
outsourcing, and the use of artificial intelligence, with the goal of promoting
consistent oversight across the EU.
ESMA Publishes Final EMIR 3 RTS
In a separate but related update under EMIR 3, ESMA
has published its final report on clearing thresholds for OTC derivatives.
The revised framework updates calculation methods for cleared and uncleared
positions and adjusts thresholds across key asset classes.
Non-financial counterparties calculate positions based on
uncleared derivatives, while financial firms apply dual calculations. Changes
reflect market conditions, inflation, and systemic risk. Feedback influenced
the scope, but virtual power purchase agreements remain outside the RTS.
