Global Trustee and Fiduciary Services Bite-Sized Issue 7 2025

3 QUICK LINKS AIFMD CSDR ELIGIBLE ASSETS DIRECTIVE EMIR FINTECH FSB MIFID II/MIFIR SUSTAINABLE FINANCE/ESG VIRTUAL ASSETS ASIA PACIFIC EUROPE NORTH AMERICA UNITED KINGDOM Global Trustee and Fiduciary Services Bite-Sized | Issue 7 | 2025 EMIR ESMA Publishes Final Report on the Active Account Requirement Under EMIR 3 On 19 June 2025, the European Securities and Markets Authority (ESMA) published its final report on the Regulatory Technical Standards (RTS) specifying the conditions under which the active account requirement (AAR) should be met, as mandated under the European Market Infrastructure Regulation (EMIR) 3. ESMA says that it has streamlined the operational conditions and the stress-testing in response to feedback to its public consultation. Additionally, compared to the initial proposal outlined in the consultation document, ESMA says that the final report includes a simplification of the reporting requirements related to risks and activities, the representativeness obligation and the fulfilment of the operational conditions. ESMA states that the AAR is a key component of EMIR 3, aimed at enhancing the resilience of the EU clearing landscape. It creates an obligation for EUmarket participants to maintain an active account at an EU central counterparty (CCP) for certain derivatives, in order to reduce their exposure to important third-country CCPs (Tier 2 CCPs). The RTS will now be submitted to the European Commission (EC) for endorsement, following which it will be subject to scrutiny by the European Parliament and the Council. Link to Final Report here FINTECH ESMA Suggests Amendments to the DLT Pilot Regime to Make it Permanent On 25 June 2025, the European Securities and Markets Authority (ESMA) published a report on the Distributed Ledger Technology Pilot Regime (DLT Pilot Regime), providing an overview of the EUmarket for authorised DLT market infrastructures and recommendations on how to expand participation in the Regime. The report contains information about business models, types of DLT financial instruments offered, and technical or legal issues encountered by supervisors to date. It also analyses the types of exemptions requested by DLT market infrastructures and the conditions under which National Competent Authorities (NCA’s) have granted those exemptions (including the compensatory measures imposed to mitigate risks). ESMA says that the report comes at an inflection point for the DLT Pilot Regime, which, despite an initially limited uptake, is now seeing growing interest from potential applicants. This recent momentum confirms the relevance of continued efforts to enhance the regime’s attractiveness and functionality. To build on this momentum, ESMA presents strategic recommendations to the European Commission (Commission), prepared with feedback received by NCAs and the European Central Bank (ECB), about: • How to make the DLT Pilot Regime more attractive to the market; and • Suggested amendments to the Pilot Regime to make it permanent and allow for more flexibility in the regulatory thresholds or eligible assets depending on the risks of each business model. ESMA says that these recommendations will complement the Commission’s public consultation on the DLT Pilot Regime for market stakeholders, which is part of the wider consultation on the Savings and Investments Union (SIU). The Commission is expected to present its own report to the European Parliament and Council within three months of receipt of the ESMA Report. Depending on its recommendations, the DLT Pilot Regime may be extended, amended, or converted into a permanent regulation. If the regime is extended, ESMA says it would be prepared to provide a follow-up report within the revised timeline and to continue technical engagement with all stakeholders. Link to Report here