Esma to Issue Guidance on Active Account Reporting for Derivatives
The European Securities and Markets Authority (Esma) is preparing to publish a supervisory briefing, accompanied by questions and answers, to clarify how firms should comply with annual reporting obligations related to the active account requirement for interest rate derivatives. This guidance aims to address challenges firms have faced since the rules came into effect last June, requiring a portion of these derivatives to be cleared onshore.
Background on the Active Account Requirement
The active account requirement, stemming from new regulations, mandates firms to report details on accounts used for trading interest rate derivatives. Since its implementation in June 2025, firms have reportedly struggled with the complexities of these reporting rules. Risk.net highlights that the upcoming Esma briefing seeks to provide much-needed clarity.
What to Expect from Esma’s Guidance
The forthcoming supervisory briefing and Q&A are designed to help firms navigate the reporting process effectively. The guidance will likely focus on practical aspects of compliance, addressing common issues and providing interpretations of the rules. Risk.net notes that this initiative is a direct response to the difficulties firms have encountered.
Impact on Firms
The active account reporting requirement impacts firms trading interest rate derivatives within the European Union. Accurate and timely reporting is crucial to ensure compliance and avoid potential penalties. The Esma guidance is expected to reduce uncertainty and streamline the reporting process, ultimately benefiting both firms and regulators.
Recent Related Regulatory Activity
Alongside the active account reporting guidance, European regulators are too addressing other complex issues in the derivatives market. For example, the European Central Bank (ECB) is seeking clarity on capital requirements for repackaged notes issued on the Spire platform, a matter that could affect pricing. Risk.net reported on this development on January 30, 2026.
a consultation paper (ESMA91-1505572268-3856) published in November 2024, addresses the active account requirement and related risk exposures. ESMA details reporting requirements on the active account up to the next reporting cycle.