The EBA asks for input to entities falling within the scope of initial margin model authorisation under the revised EMIR

29 October 2024

The ESAs launcheda short survey addressed to entities within the scope of the initial margin (IM) model authorisation regime introduced by the upcoming revised European Market Infrastructure Regulation (EMIR 3).

The European Banking Authority (EBA), in cooperation with the European Securities and Markets Authority (ESMA) and the European Insurance and Occupational Pensions Authority (EIOPA), launched today a short survey addressed to entities within the scope of the initial margin (IM) model authorisation regime introduced by the upcoming revised European Market Infrastructure Regulation (EMIR 3). The deadline for submitting responses is Friday 29 November 2024.

EMIR 3 will introduce important novelties, such as:

• an authorisation regime for IM models used by counterparties in the EU;
• a new EBA central validation function for pro-forma margin models (such as ISDA SIMM);
• a supervision of IM models with greater focus on larger counterparties.

The EBA, in cooperation with ESMA and EIOPA, is seeking general information on entities within the scope of IM model authorisation, as well as specific information relevant for fee calculation and on initial margins and IM models used.

This information will guide the EBA in the setup of its central validation function and inform the EBA’s response to the EU Commission’s Call for advice on a possible Delegated Act on fees received on 31 July 2024. The information will also be used to develop proportionate requirements for entities within the scope of IM model authorisation, especially for smaller entities (the so called “Phase 5” and “Phase 6” entities) - as part of upcoming mandates under EMIR 3.

EBA

© EBA