What is the legal basis for the obligation to have an active account at an EU-based CCP?
In order to increase the attractiveness and financial stability of EU clearing services, the European Commission has introduced the EMIR 3.0 package, which will mandate entities trading OTC derivatives to open so-called active accounts (clearing accounts) in EU-authorised CCPs for eligible instruments cleared in EUR and PLN, which have been recognised as products having systemic importance for the financial stability of the European Union.
The introduction of the requirement for market participants subject to the clearing obligation to maintain active accounts in CCPs based in the EU is intended to mitigate the risks resulting from a disproportionate concentration of OTC derivatives being cleared by EU market participants in third-country CCPs and as a result, to reduce the relatively high exposure to these CCPs.
When did the obligation to have an active account with an EU-based CCP come into force?
EMIR 3.0 was published on 4 December 2024 in the Official Journal of the European Union. The date of entry into force of the provisions of the Regulation is 24 December 2024. The specific requirement to have an active account (clearing account) with an authorised EU-based CCP comes into effect 6 months after the entry into force of EMIR 3.0.
KDPW_CCP is an authorised CCP headquartered in the EU, which clears OTC derivatives in EUR and PLN. This is why we are actively encouraging those entities covered by the new obligation to ensure advance compliance with EMIR 3.0 and to open a clearing account well before the close of the deadline.
What exactly is an active account under EMIR 3.0?
The EMIR 3.0 regulation introduces the obligation for EU market participants who clear certain OTC derivatives in EUR and PLN in third-country CCPs, to open an active account - i.e. at least one clearing account - either directly or indirectly in an EU-authorised CCP.
Active accounts must meet the requirements set out in EMIR 3.0.
Additional requirements for active accounts will be set out in the Regulatory Technical Standards (RTS) to the new regulation. ESMA will need to submit a draft RTS to the European Commission within 6 months of the entry into force of the EMIR 3.0 regulation. The Commission will then on their basis approve the delegated regulations, translated into authorised separate languages (Member States usually have 3 months to submit any comments). After voting on the provisions of these regulations, they will next be published in the EU Journal of Laws.
