(5)The European Banking Authority, the European Insurance and Occupational Pensions Authority and the European Securities and Markets Authority (the ESAs) have monitored the progress that counterparties have made implementing the initial margin requirements for non-centrally cleared derivatives. The ESAs are aware that in the final phase of implementation, the initial margin requirements will apply to a large number of entities for the first time. In the interest of supporting the smooth and orderly implementation of the margin requirements across members of the BCBS and the IOSCO and to avoid market fragmentation, the deadline for the implementation of the initial margin requirements should be extended by an extra year for counterparties with an aggregate average notional amount of non-centrally cleared derivatives between EUR 8 billion and EUR 50 billion.