On 20 December 2023, the European Supervisory Authorities (ESAs) issued joint draft regulatory technical standards (RTS) under the European Market Infrastructure Regulation (EMIR) where they are proposing a two year extension to the equity option exemption from bilateral margining. The ESAs have also issued a no-action opinion which includes clarifications on supervisory expectations.

The draft RTS and no-action opinion are an interim solution in light of the ongoing EMIR Review negotiations, which should provide a decision regarding the treatment of equity options with respect to bilateral margining, and follows a letter sent by the ESAs on 13 June 2023 to the European Commission and the co-legislators, highlighting the need to have a clear decision as part of the ongoing EMIR Review.