Liechtenstein implements EMIR III to strengthen European clearing

The Liechtenstein government has approved a report and motion to amend the EMIR implementation law and related legislation. This move is designed to implement European reforms known as EMIR III and Directive (EU) 2024/2994.

The primary objectives of these adjustments are to strengthen the stability of the financial system, improve the management of risks associated with central counterparties, and increase the resilience of the European clearing market. The reform specifically addresses the high dependency of European market participants on central counterparties located in third countries by creating incentives to use clearing services within the European Economic Area (EEA).

Under the new regulations, certain market participants will be required to maintain and use active accounts with central counterparties authorized within the EEA for specific categories of derivatives. Additionally, the proposal includes adjustments to laws regarding collective investment undertakings, securities firms, and banking laws to better monitor concentration risks.