ESMA Publishes Preliminary Findings on the Active Account Requirement

Introduction

On 6 July 2026, the European Securities and Markets Authority (ESMA) published two important documents on recent developments concerning central clearing in the European Union (EU): the Interim Report on the effectiveness of the Active Account Requirement (AAR) and the first Annual Report of the Joint Monitoring Mechanism (JMM). Together, these publications offer the first substantive read on how the AAR is reshaping the EU clearing landscape. 

ESMA’s Key Findings

The AAR was introduced by a 2024 package of amendments to the European Market Infrastructure Regulation (EMIR 3.0).  The purpose of the AAR is to reduce perceived dependencies by EU market participants on certain important “Tier 2” central counterparties (CCPs) located in third countries, principally the United Kingdom. The Interim Report presents preliminary findings on AAR implementation during 2025 and early 2026.

By February 2026, roughly 500 EU market participants had informed ESMA and their national regulators that the AAR applied to them. Collectively, these firms account for a substantial portion of EU derivatives activity, representing over 90% of the notional outstanding held by EU firms in scope of the AAR. Those notifications came from firms across most Member States, with France, Germany and the Netherlands the most heavily represented, and around half originating from banks. ESMA reports the first indications of a pick-up in clearing at EU CCPs, most notably among smaller firms, a number of which have moved the entirety of their cleared positions to EU CCPs. It also observes a modest, if still tentative, movement of market share away from Tier 2 CCPs towards their EU counterparts in some products covered by the AAR. 

The JMM’s first Annual Report, covering its 2025 activities, points to significant interconnections across borders, especially with the United States. While these links underpin efficient and liquid markets, the JMM notes they could equally serve as conduits for transmitting financial shocks. The report further notes the widening variety of products now cleared within the EU and reviews the current suite of EU-wide stress tests.

Practical Implications

For EU market participants, the findings signal widespread adoption of the AAR, and firms should expect continued supervisory attention to their clearing arrangements and Tier 2 CCP exposures. In-scope entities may also wish to ensure their notification, active account and reporting obligations are documented ahead of the final assessment. 

For UK institutions, the implications are indirect but material. As UK CCPs sit outside the EU regime, the gradual migration of activity to EU CCPs may affect liquidity and pricing on both sides, and UK groups with EU entities may need to navigate the AAR within their EU operations while monitoring divergence between the two frameworks.

Conclusion and Next Steps

ESMA has stressed that these findings are preliminary, given the AAR’s recent entry into force and remaining data gaps, and will conduct its effectiveness assessment in two stages. It will develop a dedicated methodology to inform the final, comprehensive assessment due in 2027, when a fuller data set is available. Financial institutions may look to use this window to consolidate compliance, monitor the shifting balance between EU and third-country CCPs, and prepare for the 2027 assessment. 

The Interim Report of the effectiveness of the AAR can be found here and the first Annual Report of the JMM can be found here.