The European Securities and Markets Authority has launched aconsultation on how post-trade risk reduction services can use a conditionedexemption from the clearing obligation under the European Market InfrastructureRegulation 3.The consultation also builds on ESMA’searlier work to simplify financial transaction reporting across MiFIR,EMIR, and SFTR. Reporting overlaps currently require firms, including forex andderivatives brokers, to submit the same transaction under multiple regimes. ESMA estimates that about one-third of EMIR reports overlapwith MiFIR, with total industry costs between €1 billion and €4 billionannually. Two simplification options are proposed, including a “report once”model. Feedback on this aspect is open until 19 September 2025.ESMA Seeks Feedback on PTRR FrameworkThe consultation presents draft Regulatory TechnicalStandards (RTS) that define the conditions under which OTC derivatives executedvia PTRR services may qualify for the exemption.ESMA is seeking input on several elements of the proposedPTRR framework. These include transparency towards participants, safeguards foralgorithms, the execution of PTRR exercises, internal controls, andrecord-keeping requirements. The consultation also outlines how nationalcompetent authorities should monitor compliance.Stakeholders Can Comment on PTRR FrameworkThe draft RTS focus on three types of PTRR servicescurrently used in the market: compression, portfolio rebalancing, and basisrisk optimisation. ESMA said the standards are intended “to ensure that theexemption is not used to circumvent the clearing obligation.” The framework isalso designed to reflect existing market practices since the start of EMIR 3and to support simplification and burden reduction.Stakeholders can submit feedback on the draft proposalsuntil 20 April 2026. ESMA plans to submit the final RTS to the EuropeanCommission in the fourth quarter of 2026.ESMA Publishes Final EMIR 3 RTSIn a separate but related update under EMIR 3, ESMAhas published its final report on clearing thresholds for OTC derivatives.The revised framework updates calculation methods for cleared and unclearedpositions and adjusts thresholds across key asset classes. Non-financial counterparties calculate positions based onuncleared derivatives, while financial firms apply dual calculations. Changesreflect market conditions, inflation, and systemic risk. Feedback influencedthe scope, but virtual power purchase agreements remain outside the RTS.This article was written by Tareq Sikder at www.financemagnates.com.