Regulatory Alerts2026-07-31
Added
Final Draft Amending RTS on Initial Margin Requirements for Counterparties Below Threshold
The European Supervisory Authorities submit a final draft amending Commission Delegated Regulation (EU) 2016/2251 to extend the initial margin derogation to existing non-centrally cleared OTC derivative contracts when one counterparty falls below the EUR 8 billion aggregate month-end average notional amount threshold. The draft replaces Article 28(1) to allow counterparties to cease collecting initial margins and release those already collected for outstanding contracts as early as 1 June of the year in which the threshold is breached, while maintaining the requirement to apply initial margins to new contracts from 1 January of the following year if both counterparties remain above the threshold. Additionally, the draft deletes outdated transitional arrangements in Article 38 regarding single stock and equity index options to align with Regulation (EU) 2024/2987.