The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has today published a Consultation Paper (CP) on the conditions of the Active Account Requirement (AAR) following the review of the European Market Infrastructure Regulation (EMIR 3).
The amending Regulation introduces a new requirement for EU counterparties active in certain derivatives to hold an operational and representative active account at a Central Counterparty (CCP) authorised to offer services and activities in the European Union (EU).
ESMA is seeking stakeholder input on several key aspects of the AAR, including the:
three operational conditions to ensure that the clearing account is effectively active and functional, including stress-testing;
representativeness obligation for the most active counterparties; and
reporting requirements to assess their compliance with the AAR
