On 26 February 2026, the European Securities and Markets Authority (ESMA) issued a consultation paper on regulatory technical standards (RTS) on the post trade risk reduction (PTRR) services exemption.

Background

Regulation (EU) No 2024/2987 (EMIR 3) introduces an exemption from the clearing obligation for transactions resulting from PTRR services, subject to certain requirements. To further specify the requirements and conditions for such exemption, EMIR 3 mandates ESMA to develop draft RTS.

Proposal

ESMA’s proposal in the consultation paper:

  • Describes the requirements for the types of services eligible to the PTRR exemption; notably, compression, portfolio rebalancing and basis risk optimisation. In addition, ESMA elaborates on the requirements of market risk neutrality and risk reduction applicable to all the types of PTRR services for the purposes of the exemption.
  • Sets the framework for PTRR service providers to operate for the purposes of the exemption, addressing different aspects of the PTRR service provisions, including transparency towards participants, the algorithm, the execution of the PTRR exercise, the controls to be performed, and record keeping. The draft RTS also indicate how the monitoring of the application of the PTRR exemption should take place.

In terms of achieving simplification and burden reduction the draft RTS focus mainly on the requirements needed to prevent the risks arising from using the PTRR exemption, and in particular the circumvention of the clearing obligation. In addition, to further decrease the regulatory burden for market participants, the proposal takes into consideration the provisions already applicable to PTRR service providers and users under the Markets in Financial Instruments Directive, the Markets in Financial Instruments Regulation (MiFIR) and EMIR. The proposal also includes and leverages on market practices which already provide safeguards for the use of PTRR services.

ESMA also covers certain considerations as regards the transactions to be recorded for the purposes of the exemption under MiFIR for PTRR services.

Next steps

The deadline for comments on the consultation paper is 20 April 2026.

The draft RTS will be submitted to the European Commission in Q4 2026.