ESMA - EMIR: Supervisory briefing on the AAR representativeness obligation
ESMA published a supervisory briefing on the representativeness obligation linked to the active account requirement (AAR).
The briefing sets out ESMA’s supervisory expectations for how counterparties should comply with and report on the AAR representativeness obligation. It provides guidance and promotes supervisory convergence for the supervision of counterparties subject to the AAR, an issue which has attracted particular scrutiny.
The document explains how counterparties should identify the most relevant subcategories for the purpose of the AAR representativeness obligation, how they should report trades, and includes an example of compliance with reporting of the representativeness obligation.
