On 27 January 2025, the European Systemic Risk Board (ESRB) issued its response to the European Securities and Markets Authority’s earlier consultation on the conditions of the Active Account Requirement (AAR) following the review of the European Market Infrastructure Regulation (EMIR 3).
Among other things the ESRB believes that the AAR as set out at Level 1 will likely be insufficient to adequately address risks to financial stability arising from reliance on clearing services of substantial systemic importance in third countries. While the AAR marks an important step towards reducing dependence on non-EU central counterparties, its effectiveness, as well as the possible occurrence of unintended effects, must be closely monitored and evaluated over time.
The deadline for comments on ESMA’s consultation paper was 27 January 2025. ESMA will consider the feedback it receives in Q1 2025.