One of the critical activities in the systems engineering scope of work is managing requirements. In line with this, E-ELT devotes a significant effort to this activity, which follows a well-established process. This involves optimally deriving requirements from the user (Top-Level Requirements) through the system Level 1 Requirements and from here down to subsystems procurement specifications. This paper describes the process, which is illustrated with some practical examples, including in particular the role of technical budgets to derive requirements on subsystems. Also, the provisions taken for the requirements verification are discussed.