ESMA launches consultation on reporting for recognized third-country central counterparties

The European Securities and Markets Authority (ESMA) initiated a public consultation on August 18, 2026, regarding its proposal for an annual reporting framework for counterparty activities in recognized third-country central counterparties (CCPs), in accordance with the European Market Infrastructure Regulation (EMIR). This process aims to establish a harmonized methodology that provides supervisory authorities with a structured view of the size, characteristics, and risk profiles associated with EU firms' exposures to third-country CCPs under formal recognition.

Foundation and Objectives of the Proposed Reporting Framework by ESMA

ESMA's proposal introduces Regulatory Technical Standards (RTS) and Implementing Technical Standards (ITS), both designed to standardize the flow and format of information on transactions cleared through recognized CCPs in third-country jurisdictions. The reporting obligation will be on clearing members and clients conducting operations through these CCPs. The central purpose is to equip supervisory authorities, both of ESMA and the national competent authorities, with a periodic and comparable view of the exposure level of EU entities to these foreign infrastructures.

This development is part of the reinforcement of the monitoring framework defined in EMIR 3 and aligns with ESMA's agenda aimed at simplifying obligations and reducing burdens for market participants. The design of the framework prioritizes the reuse of available data through existing reporting channels, limiting the introduction of new fields to those data not currently accessible to ESMA or national supervisors.

Scope and Obligations for Clearing Members and Clients

The scope of the reporting obligation includes:

• All active European clearing members in recognized third-country CCPs by ESMA.
• Clients who hold positions through these members in the same CCPs.

Entities will be required to submit annual information on their positions, product types, aggregated exposures, and major identified risks according to templates and formats proposed by ESMA. Beyond formal compliance, this obligation seeks to support macroprudential supervision and the early identification of risk concentrations in infrastructures located outside the EU.

Consultation Process and Next Steps

The consultation document specifies technical details on the formats, templates, and reporting channels. ESMA calls on industry participants and stakeholders to submit comments and observations by October 12, 2026. Once contributions are collected, the regulator will assess the responses and prepare a final report that will synthesize the framework to be implemented.

The consultation is aligned with ESMA's strategy to maintain a dialogue with the sector regarding regulatory requirements, in line with the evolution of regulations on financial regulation and market infrastructures. The adoption of the definitive framework is expected to contribute to consistent supervision of exposures in third-country CCPs and facilitate future regulatory adaptation in anticipation of potential EMIR reforms.

"The objective is to provide supervisory authorities with a structured and coherent view of the magnitude, characteristics, and risk profile of EU firms' exposures to recognized third-country CCPs," states ESMA's consultation document.

Simplification and Burden Reduction: A Criterion in Designing the Framework

A central criterion in designing the new framework is simplification. ESMA aims to maximize the reuse of existing information, avoiding the requirement for data that can be obtained by prior means. The new requirements will only affect information not currently available to ESMA or the competent authorities. Thus, the regulator reinforces a proportionality approach, minimizing the administrative impact on obligated entities.

ESMA highlights its interest in receiving contributions on practical issues related to the implementation of the reporting and its possible effects on the operational burden of obligated parties. The final proposals will consider that balance between supervisory visibility and regulatory efficiency.

Upcoming Developments and Available Documentation

Following the consultation, ESMA will publish a Final Report detailing the definitive framework and technical guidance for obligated entities. Meanwhile, the draft of the standards, templates, and consultation documentation is available on the authority's portal for review and comments.

For additional clarity, inquiries can be directed to Cristina Bonillo, Senior Communications Officer at ESMA, through the institutional press channel. Entities subject to the reporting obligation are advised to carefully review the consultation document published on August 18, 2026.