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Rules & Regs

Activate your account and benefit at the home of the euro yield curve

More changes are underway for EU market participants subject to the clearing obligation. EMIR 3.0 foresees the obligation to maintain an active account for systemically relevant products with an EU CCP, i.e., OTC IRD in euro and zloty as well as STIR in euro.  

Both the Council and the Parliament adopted the political agreement ahead of the EU elections. As the legislative text is still being translated into all official EU languages, the formal final confirmation by the co-legislators of the regulation is expected to take place after the EU elections and the summer recess, paving the way for the official publication of the final regulation in Q4 2024.  

20 days after its official publication in the EU Official Journal, the final legislative text will then enter into force. Six months later, i.e., likely by Q2 2025, the active account requirement will kick in, allowing ESMA to provide further specifications for the implementation in the meantime. Affected market participants are therefore encouraged to ensure readiness in time. With Eurex Clearing, you can already set up this account, be ahead of the curve, and reap the benefits of an EU-based CCP account. 

Growing together

Eurex has set up partnership programs designed to further accelerate the development of liquid, EU-based alternatives for clearing interest rate swaps (OTC IRD) and short-term interest rate (STIR) derivatives. Both market-led initiatives, the OTC IRD and the STIR partnership program, benefit clients and the broader marketplace through greater choice and competition, improved price transparency and reduced concentration risk. 

STIR partnership program

Creating an alternative liquidity pool for € short-term interest rate derivatives

OTC IRD partnership program

A performance-based program builds a balanced ecosystem

Three-Month Euro STR Futures

Product overview and statistics

EurexOTC Clear

Service offer and statistics

Did you know…?

There are two sets of requirements under the new active account regime that market participants need to comply with. While those requirements will be further specified by ESMA for the implementation in practice within 6 months of entry into force of EMIR 3.0, the legislative text already outlines key metrics: 

Operational criteria 

a) Ensuring permanent functionality, incl. IT connectivity, internal processes, legal documentation.

b) Ensuring systems and resources are in place to clear large volumes or take on large flows from Tier 2 CCPs even at short notice. 

c) Ensuring that all new business can be cleared at all times.

Exemption for firms that clear 85% of their relevant business in the EU. 

Representativeness criterion 

d) Firms need to clear, on annual average, at least 5 trades in each of the 5 most relevant subcategories in each of the 3 contract classes as determined by ESMA during a specific reference period as defined by ESMA. 

Exemption for firms <6 bn EUR notional clearing volume outstanding. 

Further, the European Commission’s impact assessment for EMIR 3.0 found that 40% of the in-scope firms have no EU clearing arrangement yet. Check your status and which capacities to consider in meeting the new EMIR requirement in time.  

The onboarding timeline for your active account under EMIR 3.0 depends on various internal and external factors. Therefore, Eurex Clearing encourages market participants to use the time until the active account regime comes into force to prepare swiftly and to avoid onboarding capacity constraints closer to this deadline. 

Onboarding and readiness: capacity considerations

Capacity considerations:

Legal resource
The client and the clearing broker will both need to assign legal resources to negotiate and review the clearing agreement.

Capacity considerations:

Account setup

Accounts will be required with the clearing broker and on behalf of the client at Eurex Clearing. If the client demands CCP reporting, additional lead time will be needed.

The middleware static data setup and technology layer implementation will also be needed.

Activation: capacity considerations

Capacity considerations:

Setting up and testing the trade execution and clearing workflow (which may require the brokers’ and the clearing brokers' support) will be required. In addition, considerations need to include a full front-to-back review of the cleared workflow.

Trading workflow setup

  • Client
  • Bloomberg/Tradeweb
  • Dealer/Clearing Broker (CB)

Client cleared workflow setup

  • Books and records
  • Reconciliation
  • CCP reporting (optional)

Capacity considerations:

Considerations should include optimizing collateral and margin requirements to maintain an active account with an EU CCP.

Client workflow setup - multi-CCP/multi-clearing broker

  • Build to multiples of the previous steps
  • CCP/IM optimization
  • CCP switching
  • Backloading
  • Collateral optimization
  • Netting/Compression


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