The European Supervisory Authorities published a final report on August 3, 2026, proposing amendments to the bilateral margin requirements under the European Commission’s Delegated Regulation (EU) 2016/2251. The amendments aim to simplify the framework for counterparties below the €8 billion threshold for initial margin requirements.
The proposed changes would eliminate the requirement for these counterparties to exchange initial margin for both new and existing contracts. This change responds to requests from market participants for simplification and aligns the EU framework with practices in other jurisdictions.
The amendments apply to all regulated entities engaged in OTC derivatives trading that fall below the specified threshold. These changes are intended to facilitate the phase-out of initial margin requirements for eligible counterparties.
The final report and draft Regulatory Technical Standards have been submitted to the European Commission for endorsement. Following the Commission's review, the RTS will be scrutinized by the European Parliament and the Council before publication in the Official Journal of the European Union.