The active account requirement, introduced by EMIR 3 (Regulation (EU) 2024/2987), obliges EU counterparties subject to the clearing obligation above a threshold to hold an operational account at an EU central counterparty and clear a minimum number of trades there in certain interest rate derivatives denominated in euro and Polish zloty.
EMIR (European Market Infrastructure Regulation)The European Market Infrastructure Regulation (EMIR), Regulation (EU) No 648/2012, sets EU rules for over-the-counter derivatives, central counterparties and trade repositories. It imposes clearing of standard derivatives, risk mitigation (confirmation, reconciliation, margin) for uncleared ones and reporting of all derivatives; EMIR 3 (2024/2987) added the active account requirement.
Clearing obligationThe clearing obligation is the duty under the European Market Infrastructure Regulation (EMIR) for financial counterparties, and non-financial ones above clearing thresholds, to clear certain classes of over-the-counter (OTC) derivatives through a central counterparty. Classes in scope include the main interest rate swaps in major currencies and some index credit default swaps.
CCP (Central counterparty)A central counterparty (CCP) is an entity that interposes itself between the parties to trades in one or more markets, becoming the buyer to every seller and the seller to every buyer. It manages counterparty risk through membership rules, margin, a default fund and a default waterfall, and in the EU is authorised under the European Market Infrastructure Regulation (EMIR).
Clearing memberA clearing member is a firm that is a direct participant of a central counterparty (CCP) and is responsible for meeting the obligations arising from the trades it clears, for itself and for its clients. It posts margin and contributes to the CCP default fund; clients access clearing through it.
EMIR (European Market Infrastructure Regulation)The European Market Infrastructure Regulation (EMIR), Regulation (EU) No 648/2012, sets EU rules for over-the-counter derivatives, central counterparties and trade repositories. It imposes clearing of standard derivatives, risk mitigation (confirmation, reconciliation, margin) for uncleared ones and reporting of all derivatives; EMIR 3 (2024/2987) added the active account requirement.
Clearing obligationThe clearing obligation is the duty under the European Market Infrastructure Regulation (EMIR) for financial counterparties, and non-financial ones above clearing thresholds, to clear certain classes of over-the-counter (OTC) derivatives through a central counterparty. Classes in scope include the main interest rate swaps in major currencies and some index credit default swaps.