On 4 December 2024, the amending regulation in respect of the European Market Infrastructure Regulation ("EMIR 3.0") was published in the EU's Official Journal. EMIR 3.0 will come into force on 24 December 2024, 20 days after its publication in the Official Journal.
Please refer to our earlier briefing on EMIR 3.0 and what it means for users of derivatives here.
This briefing is intended to be a reference for buy-side participants in derivatives markets, including asset managers and UK pension schemes. In the table below we set out the application dates of the main provisions that may apply to those counterparties. The changes brought in by EMIR 3.0 are, however, relevant to all counterparties that are established in the EU or trading with EU entities. Highlighted below are the provisions which we expect to be of most interest to buy-side participants.
While almost all of the EMIR 3.0 provisions will apply from 24 December 2024:
- New calculation methodology and thresholds for determining whether counterparties are subject to the clearing obligation will apply from the entry into force of regulatory technical standards ("RTS") to be submitted by ESMA to the European Commission by 25 December 2025.
- Firms subject to the "active account requirement" (the "AAR") have a 6-month grace period to comply with the new obligation (and the European Securities and Markets Authority ("ESMA") has until 25 June 2025 to submit draft RTS providing further detail in respect of the obligation).
- ESMA is due to submit draft RTS by 25 December 2025 to implement various provisions listed in the table below (a non-exhaustive list of EMIR 3.0 provisions which may apply to buy-side market participants).
While certain provisions technically apply from 24 December 2024, it may not be possible for market participants to comply with the relevant obligations until ESMA develops the detailed rules in the relevant RTS.
ESMA has, so far, published a draft RTS in respect of the new AAR and maintained an open discourse surrounding many of the proposed changes under EMIR 3.0. Industry associations and market participants are pushing to ensure the new procedures under the RTS are appropriate, practicable and capable of legal enforcement in different jurisdictions.
