We advised the European Bank for Reconstruction and Development (EBRD) on the technical cooperation project “Development of a Legal and Regulatory Framework for Derivatives in Estonia”.

On 15 October 2025, the Estonian Parliament adopted amendments to the Securities Market Act and other related acts, which introduce the uniform application of close-out netting regulation into Estonian law and adjust the scope of the financial collateral regime.

The legislative framework is now in line with international standards

The project’s overall objective was to develop a legal and regulatory framework for derivatives and repos in Estonia. Due to prior legal uncertainties, the International Swaps and Derivatives Association, had not published a netting opinion on Estonia, making it one of the few remaining EU member states not to have received an opinion of this kind. This reduced Estonia’s attractiveness to global financial institutions, limiting market access and increasing risks. Previous attempts to solve these legal uncertainties were abandoned due to the complexity of the related laws and EU regulations.

This legislative reform was necessary to enable Estonian companies, including financial and energy firms, to conduct international transactions safely, manage credit risk, and comply with global standards. The aim was to create a stable environment for derivatives and repos, for attracting investors, and for boosting local market activity and liquidity.

The project was funded by TaiwanBusiness – EBRD Technical Cooperation Fund. The legislative act and accompanying documents are available here (in Estonian).

Our services and client team

Our services included:

  • drafting an inception report benchmarking existing Estonian legislation against international standards
  • creating a concept paper suggesting areas for improvement and a roadmap for reform
  • drafting the legislative intent paper, the legal act, and explanatory notes together with project stakeholders (including the Ministry of Finance and the EBRD), addressing comments from market participants.

Our team consisted of partner Kätlin Krisak, counsel Jane Eespõld, and senior associate Krista Ševerev, as well as partners Kaido Künnapas and Allar Jõks and senior associate Piret Schasmin.