Read the CySEC Circular C792
Memo #42-2026
CySEC Circular No: C792
Date: 20/07/2026
Subject: Active Account Requirement and Representativeness Obligation under Articles 7a and 7b of Regulation (EU) No 648/2012 (‘EMIR’)
Purpose: To draw the attention of Regulated Entities to the Active Account Requirement (‘AAR’), applicable under Articles 7a and 7b of EMIR.
In Summary:
CySEC has issued the Circular C792 on 17/07/2026 to draw the attention of Cyprus Investment Firms, UCITS and, where relevant, their Management Companies, Alternative Investment Funds (‘AIFs’) established or managed in Cyprus and where relevant, their Alternative Investment Fund Managers (‘AIFMs’) and Non-Financial Counterparties, to the:
• Active Account Requirement (‘AAR’),
• the related Representativeness Obligation and
• the associated Notification and Reporting requirements
applicable under Articles 7a and 7b of EMIR.
Scope of the Active Account Requirement (‘AAR’) is according to Article 7a(1) of EMIR, financial counterparties and non-financial counterparties that are subject to the clearing obligation and exceed the clearing threshold are required to establish and maintain an active account at an authorised EU CCP.
Regarding Representativeness Obligation, in addition to maintaining an active account, counterparties are required to comply with the Representativeness Obligation under Articles 7a(3)(d) and 7a(4) of EMIR. This obligation requires counterparties to actively use the EU CCP account by clearing a representative proportion of the in-scope derivative contracts referred to in Article 7a(6) of EMIR through that account during each reference period.
Regarding Reporting obligation pursuant to Article 7b of EMIR, counterparties subject to the AAR shall submit information to their competent authority every six months to enable assessment of compliance with the obligations set out in Article 7a of EMIR.
Regulation (EU) 2026/305, which entered into force on 26/02/2026, supplements EMIR by specifying the operational conditions, representativeness and reporting obligations related to the AAR. The Regulation provides the detailed rules necessary for the implementation and supervision of Articles 7a and 7b of EMIR.
CySEC notes that the European Securities and Markets Authority (‘ESMA’) has published a notification template for counterparties that become subject to the AAR under Article 7a(1) of EMIR.
CySEC further informs that ESMA has published on 20/02/2026 a Supervisory Briefing on the Representativeness Obligation.
CySEC further notes that to support the implementation of the AAR, ESMA has developed common reporting templates and instructions for the reporting obligation under Article 7b of EMIR and Regulation (EU) 2026/305.
When Regulated Entities are subject to the AAR under Article 7a(1) of EMIR, they should complete the notification template and send it to CySEC and ESMA through the email addresses emir@cysec.gov.cy and AAR-notifications@esma.europa.eu.
In addition, CySEC informs that Regulated Entities that subsequently meet the 85% exemption threshold set out under Article 7a(5) of EMIR are invited, on a voluntary basis, to re-submit the notification template to CySEC and ESMA.
Furthermore, CySEC informs that Regulated Entities that are subject to the clearing obligation and meet the conditions set out in Article 7a(1) of EMIR are expected to submit their first report on the AAR to CySEC by 31/07/2026.
In accordance with Circular C792, Regulated Entities should assess whether they fall within the scope of the AAR, taking into account the applicable clearing thresholds and, where relevant, clearing activity at group level on a consolidated basis.
In relation to ongoing compliance, CySEC informs that Regulated Entities should establish appropriate procedures and controls to monitor ongoing compliance with the operational, representativeness, notification and reporting requirements under Articles 7a and 7b of EMIR and Regulation (EU) 2026/305.
The ESMA notification template can be found attached on Circular C792.
The ESMA Supervisory Briefing can be found on the following link:
The ESMA common reporting instructions for the reporting obligation under Article 7b of EMIR and Regulation (EU) 2026/305 can be found attached on Circular C792.
Read the CySEC Circular C792
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