EMIR 3: Active Account Requirement, Clearing Thresholds, and July 2026 Reporting

EMIR 3 (European Market Infrastructure Regulation 3) entered into force on 24 December 2024, bringing the most significant changes to EU derivatives clearing since the original EMIR was adopted in 2012. The headline change is the Active Account Requirement (AAR) — a new obligation that forces large EU financial institutions and certain corporates to maintain operational clearing accounts at EU-based central counterparties (CCPs) for euro and Polish zloty derivatives.

This guide covers what EMIR 3 changes, who is affected, how the Active Account Requirement works, and the key deadlines in 2025–2026.

Why EMIR 3? The Policy Background

Post-Brexit, the bulk of euro-denominated derivatives clearing shifted to LCH Ltd in London. The European Commission and ECB identified this concentration of systemic risk outside the EU as a financial stability concern — a €90 trillion+ euro derivatives market cleared primarily at a non-EU CCP.

EMIR 3 is the legislative response. Its primary objective is to incentivize repatriation of euro clearing to EU CCPs (principally Eurex Clearing, OMI Clearing, and other EU-based CCPs) while maintaining market efficiency and international competitiveness.

EMIR 3 works alongside — but is distinct from — EMIR REFIT, which focused on harmonizing the reporting framework (203-field ISO 20022 reporting, effective April 2024). EMIR 3 focuses on where clearing happens, not just how it is reported.

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Key Changes: EMIR 3 vs. EMIR REFIT

Aspect	EMIR / EMIR REFIT	EMIR 3
Clearing location	No preference; any recognized CCP	EU CCPs prioritized via AAR
Reporting	203 fields, ISO 20022 (REFIT)	New fields effective 29 April 2026; AAR reporting July 2026
Clearing thresholds	Aggregate (cleared + uncleared)	New uncleared-only threshold for NFCs
Initial margin models	Authority approval	EBA validation required
Group exemption	Available for FCs and NFCs	Removed for NFCs
Third-country CCP reporting	Not required	Annual reporting on 3rd-country CCP clearing volumes

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The Active Account Requirement (AAR)

The AAR is the centerpiece of EMIR 3. It applies to counterparties subject to EMIR's clearing obligation that trade in:

1. OTC interest rate derivatives (IRD) denominated in EUR or PLN
2. Short-term interest rate derivatives (STIR) denominated in EUR

Who Is In Scope?

Financial Counterparties (FCs) — including credit institutions, investment firms, insurance companies, pension funds, UCITS, AIFs, and clearing members — that exceed the clearing threshold in the relevant asset classes.

Non-Financial Counterparties (NFCs) — corporates, asset managers, and other entities that exceed the relevant clearing threshold.

Exemption: Entities with less than €6 billion in aggregate outstanding notional value across the relevant derivatives categories are exempt from the "representativeness" requirements (but must still open an EU CCP account if in-scope).

Effective date: 25 June 2025 for the first group of in-scope counterparties. Entities that become in-scope after this date have a 6-month grace period to operationalize their EU CCP account.

What Does "Active" Mean?

An account is active if it is genuinely operational — not dormant or maintained purely for compliance. ESMA's final technical standards specify:

• For large counterparties (≥€6 billion outstanding notional in the relevant class): a minimum of 5 trades per derivative class per reference period (defined by ESMA's implementing technical standards)
• The trades must be representative of the entity's overall clearing activity in that class — not just five minimal trades executed to tick a compliance box
• For smaller in-scope counterparties (below €6 billion): the account must be operational but no minimum trade count is required

The representativeness requirement is designed to prevent "paper compliance" — maintaining an EU CCP account but clearing the vast majority of business at non-EU CCPs.

Which EU CCPs?

Counterparties may choose any EU CCP recognized under EMIR with clearing services in the relevant asset classes. The main options:

• Eurex Clearing (Frankfurt) — Deutsche Börse's clearing house; primary competitor to LCH for euro IRD
• LCH SA (Paris) — French subsidiary of LCH Group; EU-regulated CCP for euro products
• OMI Clearing (Spain) — Spanish CCP
• CC&G (Italy) — Cassa di Compensazione e Garanzia

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Clearing Thresholds: What Changed for NFCs

The threshold calculation for Non-Financial Counterparties (NFCs) is substantially revised under EMIR 3:

Old EMIR/REFIT threshold structure:

• Single aggregate threshold covering all asset classes
• Both cleared AND uncleared derivatives counted
• Group-level calculation (all group entities aggregated)
• If any threshold is exceeded → clearing obligation triggers for ALL asset classes above threshold

New EMIR 3 structure for NFCs:

• Uncleared derivatives only — voluntarily cleared positions no longer inflate the threshold calculation
• Exchange-traded derivatives (ETDs) excluded
• Only the NFC's own positions count (group-level aggregation removed for NFCs that are not hedging on behalf of the group)
• Separate thresholds per asset class — exceeding one threshold only triggers obligation for that asset class

Asset Class	Old Threshold	New Threshold (EMIR 3)
OTC interest rate derivatives	€3 billion	TBD via RTS (ESMA consultation)
OTC FX derivatives	€3 billion	TBD via RTS
OTC equity derivatives	€1 billion	TBD via RTS
OTC credit derivatives	€1 billion	TBD via RTS
OTC commodity derivatives	€4 billion	€3 billion (confirmed)
Emission allowance derivatives	€4 billion	€3 billion (confirmed)

Note: ESMA published draft RTS on clearing thresholds in late 2025. Final thresholds for most asset classes are expected in early 2026.

Practical Impact on NFCs

The shift to an uncleared-only threshold is significant for large corporates that have been voluntarily clearing a portion of their portfolio. Under old EMIR, voluntary clearing of interest rate swaps inflated your aggregate notional and could push you over the threshold. Under EMIR 3, those voluntarily cleared positions no longer count.

Result: Some NFCs that previously exceeded thresholds due to voluntary clearing may now fall below the EMIR 3 uncleared threshold and exit the clearing obligation entirely.

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Initial Margin Model Changes

Under EMIR 3, the validation of initial margin (IM) models — the models used to calculate margin requirements for uncleared derivatives — is substantially changed:

Old approach:

• Financial institutions use proprietary or industry-standard IM models (e.g., ISDA SIMM)
• Approved by national competent authority

EMIR 3 approach:

• All initial margin models must be validated by the EBA (European Banking Authority)
• Article 11 requirement: No IM model can be used or materially amended without EBA validation and national regulator approval
• The EBA issued an opinion in December 2024 on the application of EMIR 3 with respect to initial margin models, outlining the validation process

What this means for ISDA SIMM users:

• ISDA SIMM (Standard Initial Margin Model) is widely used across the industry
• Financial institutions using ISDA SIMM must obtain EBA validation and national regulator approval
• EBA validation decisions for major models are expected in 2026
• During the transition, entities can continue using currently-approved models pending EBA review

Exemptions:

• Single stock equity options — exempt from both initial and variation margin requirements
• Equity index derivatives — exempt from both initial and variation margin requirements

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New Reporting Requirements

EMIR 3 introduces three new reporting dimensions:

1. Active Account Reporting (Article 7b)

• First report due: July 2026
• Data coverage: 25 June 2025 onwards (first effective date)
• Content: Counterparty demonstrates compliance with the AAR — number of trades cleared at EU CCPs, notional volumes, representativeness
• Submit to: ESMA and national competent authority
• Format: ESMA will publish technical standards specifying the reporting template

2. Third-Country CCP Reporting (Article 7d)

• Frequency: Annual
• Who must report: In-scope counterparties that clear at recognized third-country CCPs (ESMA Article 25 CCPs)
• Content: Clearing volumes, risk metrics, counterparty concentration at non-EU CCPs
• First report: Expected alongside 2026 reporting cycle (covering 2025 data)

3. New EMIR Reporting Fields (effective 29 April 2026)

EMIR 3 adds new fields to the existing EMIR derivative trade reporting framework (currently 203 fields under EMIR REFIT). The additional fields focus on:

• Active account information
• Third-country CCP clearing identification
• Alignment with international standards (CPMI-IOSCO)

Firms should assess whether their trade reporting systems need updates before the April 2026 deadline.

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Who Is Affected: Practical Guide by Entity Type

Banks and Credit Institutions

All major EU banks are in scope. Banks that currently clear euro IRD primarily at LCH Ltd (London) must:

1. Open an active account at an EU CCP (most are using Eurex Clearing or LCH SA)
2. Execute the minimum 5 trades per reference period in EUR/PLN IRD and EUR STIR
3. Demonstrate representativeness to national regulator
4. Submit AAR report by July 2026

Most major EU banks have already completed this operationalization given the June 2025 effective date.

Investment Firms

Investment firms above the clearing threshold must open EU CCP accounts. Investment firms using the Article 60 simplified route (if they are already MiFID II-authorized) may qualify for a streamlined process at some NCAs.

Asset Managers (FCs and NFCs)

Large asset managers managing funds that exceed clearing thresholds in EUR IRD:

• Must open EU CCP accounts at the fund level (UCITS and AIFs are assessed separately)
• The AAR applies to the fund, not just the management company
• Smaller funds below €6 billion notional: account required but no minimum trade count
• Fund managers should work with their prime brokers and clearing brokers on account setup

Insurance Companies and Pension Funds

Insurance companies above the clearing threshold are subject to the AAR. Pension funds have historically had an Article 2(1)(d) temporary exemption from the clearing obligation — check whether this exemption continues to apply to your specific fund under current ESMA guidance.

Corporates (NFCs)

Large corporate hedgers (energy companies, manufacturers, financial services firms using derivatives for hedging) may be in scope. Under the new NFC threshold methodology, assess:

1. Your uncleared notional position in EUR IRD and EUR/PLN STIR only (voluntarily cleared and ETD positions excluded)
2. Whether you exceed the threshold at entity level (not group level)
3. Whether your hedging transactions qualify for the commercial hedging exemption

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Key Deadlines

Date	Event
24 December 2024	EMIR 3 entry into force
25 June 2025	Active Account Requirement first effective date (first in-scope counterparties)
26 February 2026	RTS on AAR operationality conditions comes into force
29 April 2026	New EMIR reporting fields effective (trade reporting systems must be updated)
25 June 2026	Member States must transpose EMIR 3 directive amendments into national law
July 2026	First AAR report due — covering 25 June 2025 to June 2026 data
End 2026	EBA issues initial validation decisions on IM models
Ongoing	Third-country CCP annual reporting cycle

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How to Assess Your Obligations: Five Questions

1. Are you a Financial Counterparty or NFC above the clearing threshold for EUR/PLN IRD or EUR STIR? If yes, the AAR applies.

2. Do you have an active account at an EU CCP? If not, and you are in-scope, you may already be in breach (effective date was June 2025 for first tranche).

3. Is your account representative? If you are a large counterparty (≥€6 billion notional), verify you are clearing at least 5 trades per reference period at an EU CCP.

4. Are your trade reporting systems updated for the 29 April 2026 new fields? Review ESMA's technical standards and coordinate with your trade repository.

5. Have you prepared your AAR report data? The July 2026 report requires trade-level data from June 2025 onwards. Systems must be capturing this now.

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Interaction with Other EU Regulations

DORA: CASPs and financial entities subject to DORA must ensure their clearing arrangements (including CCP connections and data flows) are covered by their ICT third-party risk management framework under DORA Article 28.

MiFID II: EMIR 3 does not change the MiFID II best execution requirements. Firms should assess whether clearing at EU CCPs impacts execution quality analysis for derivative transactions.

SFDR/Taxonomy: Clearing arrangements do not directly impact SFDR or Taxonomy reporting, but ESG-linked derivatives may have specific counterparty considerations.

Use our platform to query the EMIR 3 regulation text, ESMA consultation papers, and associated technical standards directly.