The AAR requires financial and non-financial counterparties that exceed the clearing threshold to establish and maintain an active account at an authorised European Central Counterparty (EU CCP). The obligation is limited to:

• interest rate derivatives denominated in euro or Polish zloty and
• short-term interest rate derivatives denominated in euro.

For entities belonging to a group subject to consolidated supervision in the EU, the threshold assessment is performed on a consolidated basis, considering all in-scope contracts cleared by group entities but excluding intragroup transactions.

Where a counterparty is deemed to be subject to the obligation of holding an active account, it must notify ESMA and its relevant competent authority and must establish the active account within six months of becoming subject to that requirement.

Counterparties subject to the AAR must ensure the active account remains continuously operational and capable of clearing at all times. Additionally, under the representativeness obligation, a proportion of in-scope derivative contracts must actually be cleared through the EU CCP account, it is not sufficient merely to open an account.

A notable carve-out applies counterparties whose aggregate notional amount across in-scope categories does not exceed EUR 6 billion (assessed at group level) are exempt from the representativeness obligation, under Article 7a(4) EMIR, though they remain subject to the AAR itself.

Key practical steps for in-scope entities include:

• Notification: Entities must notify both CySEC (at emir@cysec.gov.cy) and ESMA (at AAR-notifications@esma.europa.eu) using the prescribed Excel template. The template format must not be modified.
• First reporting deadline: The first AAR compliance report is due to CySEC by 31 July 2026, covering backloaded data from 25 June 2025 onward, in addition to data for 2026.
• Ongoing reporting: Thereafter, reports are submitted semi-annually (31 January and 31 July), each covering a twelve-month reference period.

Entities that subsequently meet the 85 per cent exemption threshold under Article 7a(5) EMIR are encouraged to re-submit the notification template on a voluntary basis to confirm their exempt status.

CySEC expects regulated entities to:

• assess whether they fall within scope (including at group level);
• if they do fall within scope, create and maintain an active account at an authorised EU CCP;
• ensure appropriate legal, operational, and IT arrangements are in place to satisfy the requirements under EMIR and Regulation (EU) 2026/305;
• monitor compliance with the representativeness obligation on an ongoing basis; and

maintain sufficient records to demonstrate AAR compliance.

The immediate practical significance of this Circular is the tight reporting timeline: entities must assess scope, establish an active account, and submit their first compliance report within two weeks of publication. Entities that have not yet begun preparations should prioritise the group-level threshold assessment and the operational readiness of their EU CCP account

CySEC’s Circular C792 can be found here.