EBA, EIOPA and ESMA propose amendments to bilateral margin requirements
EBA, EIOPA and ESMA propose amendments to bilateral margin requirements 03 August 2026 Joint Committee Trading The European Supervisory Authorities (EBA, EIOPA and ESMA – the ESAs) today published a final report on draft Regulatory Technical Standards (RTS), proposing to simplify the bilateral margin requirements of the European Commission’s Delegated Regulation (EU) 2016/2251. The proposed amendments aim to simplify the bilateral margin framework for counterparties that are subject to initial margin requirements and that are below the €8 billion threshold for exchanging initial margin foreseen by the European Market Infrastructure Regulation (EMIR). The changes are intended to facilitate the phase-out of initial margin requirements for these counterparties. They also support greater consistency with the treatment applied in other jurisdictions. In the current framework, counterparties that are below the threshold are exempt from exchanging initial margin for new uncleared over-the counter (OTC) derivative contracts but continue to exchange initial margin for existing contracts. With the proposed amendments, counterparties would no longer be required to exchange initial margin for either new or existing contracts if they are below the threshold. The amendments respond to requests from market participants and support the ESAs' broader objectives of simplification and burden reduction. Next steps The Final Report has been submitted to the European Commission together with the draft RTS for endorsement. Following the Commission's review and adoption process, the RTS will be subject to scrutiny by the European Parliament and the Council before being published in the Official Journal of the European Union. Further information: Tayfun Yilmaz Communications Officer press@esma.europa.eu 03/08/2026 ESA 2026 07 Final Report on amending RTS on uncleared OTC derivatives
Source: European Securities and Markets Authority · August 12, 2026 at 7:40 PM · AI-assisted report
KUALA LUMPUR, 13 AUGUST 2026 —
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The European Supervisory Authorities (EBA, EIOPA, and ESMA) have proposed amendments to bilateral margin requirements, aiming to simplify the framework for counterparties with an exposure below the €8 billion threshold. The proposed changes, published on August 3, 2026, intend to facilitate the phase-out of initial margin requirements for these counterparties and support greater consistency with treatments applied in other jurisdictions.
Market Impact
The amendments respond to requests from market participants and align with the ESAs' objectives of simplification and burden reduction.
The proposed amendments are unlikely to have a direct impact on the Malaysian market, as they primarily affect European counterparties. However, Malaysian financial institutions with exposure to European markets may benefit from the simplified framework, potentially reducing their regulatory burden. Details on the specific implications for Malaysian market participants are not yet available. The amendments may also influence regulatory approaches in other jurisdictions, including Malaysia, as authorities seek to harmonize standards and facilitate international trade.
According to the European Securities and Markets Authority, the current framework exempts counterparties below the €8 billion threshold from exchanging initial margin for new uncleared over-the-counter (OTC) derivative contracts, but they continue to exchange initial margin for existing contracts. The proposed amendments would eliminate the requirement to exchange initial margin for both new and existing contracts if the counterparty is below the threshold.
The Final Report has been submitted to the European Commission for endorsement, and the draft Regulatory Technical Standards will undergo review and adoption processes before being published in the Official Journal of the European Union.
The outcome of the proposed amendments is subject to the European Commission's review and the scrutiny of the European Parliament and the Council. If endorsed, the changes are expected to reduce regulatory burdens and facilitate trade for affected counterparties. Malaysian authorities and market participants will likely monitor the developments and assess potential implications for the local market.
Further information on the proposed amendments can be obtained from the European Securities and Markets Authority, and market participants can contact Tayfun Yilmaz, Communications Officer, at press@esma.europa.eu for more details.