June 27, 2025 (NO COMMENTS)

The European Union’s top clearing house supervisor won’t rule out the possibility of setting hard thresholds for the onshore clearing of euro interest rate swaps, following the publication of final technical rules on the subject. The rules, published by the European Securities and Markets Authority on June 19, are due for review 12 months after they are approved by the European Commission.

“At that point in time, we will have to see if we need to calibrate existing requirements or if we need to consider different tools – that is something we can only do when we have the full picture,” Klaus Löber, chair of Esma’s central counterparty supervisory committee, tells Risk.net.

He notes that the European Market Infrastructure Regulation (Emir 3.0), which entered into force in December 2024, included a provision to introduce minimum quantitative thresholds for the amount of trades EU-regulated participants must clear onshore, if insufficient volumes of clearing have moved into the EU. That decision will be made as part of a “comprehensive look” during the review process, keeping in mind the overarching aim of Emir 3.0 is to reduce EU exposure to third-country central counterparties (CCPs).

Our objective is to reduce current elevated, unsustainable exposure levels, so we really need to see there is a reduction to levels where we are no longer concerned,” says Löber, who was recently reappointed for another five-year term. “If this is not the case, one would need to consider if other measures are necessary.”