ESAs Propose Bilateral Margin Changes for Uncleared OTC Derivatives

The European Supervisory Authorities - the EBA, EIOPA and ESMA - published a final report on 3 August 2026 proposing amendments to the Regulatory Technical Standards for bilateral margin requirements under EMIR.

The proposal targets counterparties that are subject to initial margin requirements but fall below the EUR 8 billion threshold for exchanging initial margin. ESMA said those counterparties are already exempt from exchanging initial margin for new uncleared OTC derivative contracts, but still exchange it for existing contracts. The proposed amendments would remove that requirement for both new and existing contracts when counterparties are below the threshold.

The ESAs describe the change as a simplification measure and as a step toward more consistent treatment with other jurisdictions. The report has been sent to the European Commission for endorsement before the European Parliament and Council scrutiny process.

Why it matters

Margin rules affect the cost and operational complexity of derivatives trading. If adopted, the amendments could reduce collateral and documentation friction for some EU-market counterparties below the EMIR threshold, which may matter to brokers, clearing relationships and professional clients using uncleared OTC derivatives.

What to watch next

Watch the European Commission endorsement process and any implementation timing in the Official Journal. Traders using OTC derivatives should also watch whether brokers update collateral terms, disclosures or eligibility checks if the RTS changes become final.