EU EMIR 3: AAR Reporting Deadline

Counterparties that are subject to the Active Account Requirement (AAR) under EU EMIR (as introduced on 24 December 2024 by EMIR 3) are required to calculate their activities and risk exposures in the AAR categories* and report on AAR compliance to their competent authority every six months (Article 7b EU EMIR).

* The AAR categories are interest rate derivatives denominated in euro or Polish zloty and short-term interest rate derivatives denominated in euro.

For counterparties that became subject to the AAR immediately and had to start complying with AAR by 25 June 2025, that timeline would suggest the first AAR reports would have been due in December 2025. However, the regulatory technical standards specifying the operational conditions, the representativeness obligation and the reporting requirements related to the AAR (the AAR RTS) were not yet in force and the European Securities and Markets Authority (ESMA) helpfully clarified in early December 2025 that the first AAR reporting submission would be required in July 2026 (see our article here). The AAR RTS entered into force on 26 February 2026 and established an end-July and end-January reporting framework (see our article here).

ESMA has since reconfirmed its expectation that the first AAR reporting submission be made by 31 July 2026, and has also published the reporting templates and instructions for AAR reporting (available here under the heading “Article 7b reporting”). In relation to the representativeness obligation, ESMA’s guidance (within the instructions) on identifying the most relevant sub‑categories is stated to complement ESMA’s Supervisory Briefing on the AAR Representativeness Obligation (see our article here).

Counterparties that are subject to the AAR reporting obligation should therefore ensure that they are prepared to submit their first AAR reports to their competent authority by 31 July 2026.

Please feel free to contact us if you would like to discuss this, or any other aspect of EMIR 3.