Equity options and index options: The end of the exemption?


Risk management (and in particular the exchange of initial margins and variation) for derivatives contracts not cleared by a CCP* is the subject of a dedicated delegated regulation (2016/2251).

In 2021, regulation 2021/236 amended some of its measures to take account of regulatory disparities between the Union and other regions of the world1.

In particular, the new text temporarily suspended (until January 4, 2024) the obligation to exchange initial and variation margins for equity options and index options.

In view of the forthcoming deadline, the European regulators (ESMA, EBA, EIOPA) have just asked the European institutions (the Commission, the Parliament and the Council) for their opinion on the future of this exemption, since there are arguments both for maintaining it and for ending it.

ESA 2023 11 - ESAs Letter on EMIR bilateral margining framework and equity options (europa.eu)

*CCP: Central Counterparty
1Read our related Flash News: Cleared derivatives: The new regulation finally published! (24/02/2021)