The European Supervisory Authorities (EBA, EIOPA, and ESMA) published a final report proposing amendments to Regulatory Technical Standards (RTS) governing bilateral margin requirements. The changes aim to simplify the framework for counterparties below the €8 billion threshold under EMIR, enabling the phase-out of initial margin requirements for such entities. Under the proposed rules, counterparties below the threshold would no longer need to exchange initial margin for new or existing contracts, whereas currently they are exempt only for new uncleared OTC derivatives. The amendments align with global practices and address market participant requests. The final report has been submitted to the European Commission for endorsement, with subsequent review by the European Parliament and Council before publication in the Official Journal of the EU.
© European Banking Authority.
Summary adapted from material on the EBA website (https://www.eba.europa.eu ).
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