CySEC Circular C792 puts the EMIR Active Account Requirement (AAR) firmly on the agenda for affected Cyprus-regulated entities.
Who is in scope?
The AAR applies to financial counterparties (FCs) and non-financial counterparties (NFCs) that are subject to the EMIR clearing obligation and exceed the applicable clearing threshold.
CySEC’s Circular is relevant to:
- Cyprus Investment Firms
- UCITS and, where relevant, their management companies
- AIFs established or managed in Cyprus and, where relevant, their AIFMs
- Non-Financial Counterparties
For groups subject to consolidated supervision in the EU, the relevant clearing activity may need to be assessed on a consolidated group basis, excluding eligible intragroup transactions.
Which derivatives are in scope?
The AAR applies to specific categories of derivatives:
- EUR interest rate derivatives
- PLN interest rate derivatives
- EUR short-term interest rate derivatives
The representativeness framework further categorises these by product type, maturity and trade size. Examples include EUR Fixed-to-Float, EUR OIS, EUR FRA, PLN Fixed-to-Float, PLN FRA, and EUR STIR referencing Euribor or €STR.
Practical implementation checklist
For potentially impacted firms, the key steps are:
- Confirm your scope
Assess FC/NFC status, clearing obligation, clearing thresholds and group-level activity. - Identify your in-scope derivatives
Build a complete inventory by currency, product type, maturity, trade size and clearing venue. - Map your CCP exposure
Determine what proportion of relevant clearing activity is conducted through EU-authorised CCPs versus third-country CCPs. - Assess the 85% exemption
Determine whether your clearing model already meets, or could meet, the 85% threshold. - Establish the active account if required
Put in place the necessary CCP, clearing member, legal, collateral, operational and IT arrangements. - Build ongoing monitoring and reporting
Track clearing activity, representativeness, relevant subcategories and operational readiness—and maintain evidence to support regulatory reporting.
CySEC expects the first AAR report from entities meeting the relevant conditions by 31 July 2026, with subsequent reporting on a six-month cycle.
The key message
Don’t wait until the reporting deadline to start the analysis. The first step is to understand which entities, trades and clearing activity are actually in scope, then build the data and operational framework needed to demonstrate compliance.
Frequently Asked Questions (FAQ)
Q1: What is the primary purpose of CySEC Circular C792?
CySEC Circular C792 draws the attention of Cyprus-regulated entities to the Active Account Requirement (AAR) and Representativeness Obligation under Articles 7a and 7b of EMIR (as amended by EMIR 3), setting out key compliance, notification, and reporting expectations.
Q2: Who must establish an active account at an EU-authorised CCP?
Financial Counterparties (FCs) and Non-Financial Counterparties (NFCs) that are subject to the EMIR clearing obligation and exceed the applicable clearing threshold in specified derivative classes must establish and maintain an active account at an EU-authorised CCP.
Q3: Which derivative asset classes are subject to the AAR?
The requirement applies strictly to:
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EUR interest rate derivatives
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PLN interest rate derivatives
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EUR short-term interest rate derivatives (STIR)
Q4: What is the 85% Exemption Threshold under Article 7a(5)?
Firms that already clear 85% or more of their in-scope derivative contracts through an active account at an EU CCP are exempt from certain additional operational requirements. Counterparties meeting this exemption can resubmit the notification template to CySEC and ESMA to confirm their status.
Q5: When is the first reporting deadline for CySEC-regulated entities?
Affected entities meeting the relevant conditions must submit their first AAR report to CySEC by 31 July 2026. Subsequent reporting will follow a six-month cycle (31 January and 31 July).
Q6: How should notifications and reports be submitted to regulators?
Entities must complete ESMA’s official notification/reporting template and submit it electronically via email to both CySEC (emir@cysec.gov.cy) and ESMA (AAR-notifications@esma.europa.eu).
How Point Nine Can Help
Navigating the EMIR Active Account Requirement requires robust data management and automated reporting frameworks. Point Nine provides specialised RegTech solutions to help Cyprus-regulated entities meet CySEC standards with confidence.
