Germany

European Parliament and Council of EU decide not to object to MiFIR Delegated Regulation exempting certain third countries’ central banks from pre- and post-trade transparency

The European Parliament has updated its procedure file on the proposed Commission Delegated Regulation supplementing MiFIR as regards the exemption of certain third countries’ central banks in their performance of monetary, foreign exchange and financial stability policies from pre- and post-trade transparency requirements (Delegated Regulation). The procedure file states that the Council of the EU … Continue Reading

AFME report on MiFIR post-trade reporting requirements

The Association for Financial Markets in Europe (AFME) has published a report that explains the post-trade reporting requirements under Articles 6, 10, 20 and 21 of MiFIR. The document covers: firms impacted by the MIFID II / MiFIR post-trade transparency requirements; the data required to be reported; when and where the data is to be … Continue Reading

ECB consults on draft guides concerning credit institution licence applications

The European Central Bank (ECB) has published for consultation: a draft guide to assessments of licence applications. Since 4 November 2014, the ECB has been exclusively competent to authorise all credit institutions established in the Member States participating in the Single Supervisory Mechanism (SSM). This competence is exercised in close cooperation with the relevant Member … Continue Reading

Joint Committee of ESAs report on risks and vulnerabilities in EU financial system

The Joint Committee of the European Supervisory Authorities (ESAs) has published its September 2017 report on risks and vulnerabilities in the EU financial system. The report that the Joint Committee of the ESAs published in March 2017 considered the following to be key risks to the EU financial system: (i) the persistent low profitability of … Continue Reading

FSB and IMF second progress report on phase 2 of G20 data gaps initiative

The Financial Stability Board (FSB) and the International Monetary Fund (IMF) have jointly produced their second progress report on the implementation of the second phase of the G20 data gaps initiative (DGI-2). The main objective of DGI-2 is to implement the regular collection and dissemination of reliable and timely statistics for policy use. The progress … Continue Reading

Commission legislative proposals for reforms to the European System of Financial Supervision

The European Commission (Commission) has published legislative proposals for reforming the European System of Financial Supervision. The Commission press release that accompanies the legislative proposals summarises the key features which include the following: the European Supervisory Authorities (ESAs) will be given coordination powers over day-to-day supervision by Member State competent authorities. The ESAs will set … Continue Reading

EBA discussion paper on significant risk transfer in securitisation

The European Banking Authority (EBA) has published a discussion paper on the significant risk transfer (SRT) in securitisation. The EBA is seeking views on enhancing the regulatory and supervisory playing field with respect to the assessment and recognition of SRT in three core areas: the standardisation of the process of SRT assessment by Member State … Continue Reading

European Commission proposes amendments to European System of Financial Supervision

The European Commission published on 20 September draft legislation that, if adopted, would introduce far reaching changes to the powers, governance structure and funding mechanism of the European Supervisory Authorities (ESAs). Amongst others objectives, the proposed amendments seek to shift part of the ESAs financing burden to financial market participants. The proposed regulation would also … Continue Reading

ECB Regulation amending Regulation on reporting of supervisory financial information published in OJ

There has been published in the Official Journal of the European Union (OJ), Regulation (EU) 2017/1538 of the European Central Bank of 25 August 2017 amending Regulation (EU) 2015/534 on reporting of supervisory financial information. The amending Regulation enters into force 20 days after its publication in the OJ, that is on 9 October 2017. … Continue Reading

Basel Committee updates FAQs on Basel III definition of capital

The Basel Committee on Banking Supervision (Basel Committee) has published a revised version of its FAQs on the definition of capital. Updated material is marked in italics.‎ In addition, two flowcharts have been added to the annex to the document. The flowcharts are designed to aid understanding of the application of the Basel III transitional … Continue Reading

FCA publishes PSD2 policy statement

The FCA has published Policy Statement 17/19: Implementation of the revised Payment Services Directive (PSD2): Approach Document and final Handbook changes (PS17/19). The majority of the requirements introduced under the revised Payment Services Directive (PSD2) must be implemented by 13 January 2018. HM Treasury is implementing the PSD2 through the Payment Services Regulations 2017 (PSR … Continue Reading

ESMA sets out procedure for exemption from MiFIR access provisions for trading venues

Article 36(1) of MiFIR establishes that a trading venue shall provide trade feeds on a non-discriminatory and transparent basis, including as regards fees related to access, upon request to any central counterparty (CCP) authorised or recognised by the European Market Infrastructure Regulation (EMIR) that wishes to clear transactions in financial instruments that are concluded on … Continue Reading

ISDA recommendations for CCP recovery and resolution framework

The International Swaps and Derivatives Association (ISDA) has published a paper containing recommendations for a comprehensive recovery and resolution framework that would ensure central counterparties (CCPs) can withstand severe market stress. In doing so, the ISDA recognises that these strategies will necessarily have to vary by jurisdiction and by CCP, based on different CCP structures … Continue Reading

Member States continue review of CCP recovery and resolution proposal

On 12 September the Estonian Presidency held the first post-summer recess Council working group to continue discussions on the European Commission’s November 2016 proposal for a regulation setting out a recovery and resolution framework for CCPs (CCP RR). The meeting agenda included a review of the proposed provisions pertaining to group structures, as well as … Continue Reading

ESMA updates Q&A on MiFID II market structure topics

The European Securities and Markets Authority has updated its Q&As on MiFID II and MiFIR market structures topics. The new Q&As relate to the following topics: timing and procedure of notification for temporary opt-out under Article 36(5) MiFIR; exemptions under Article 36(5) and Article 54(2) of MiFIR; timing of application for transitional arrangements under Article … Continue Reading

Commission summary of contributions to its consultation on FinTech

The European Commission (Commission) has published a summary of the contributions to its March 2017 consultation, FinTech: a more competitive and innovative European financial sector. The purpose of the consultation was to seek input from stakeholders to further develop the Commission’s policy approach towards technological innovation in financial services. Key messages from the feedback to … Continue Reading

Basel III monitoring results

The Basel Committee on Banking Supervision (Basel Committee) has published the results of its latest Basel III monitoring exercise based on data as of 31 December 2016. Data has been provided from a total of 200 banks comprising 105 large internationally active banks. The “Group 1 banks” are defined as internationally active banks that have … Continue Reading

New Commission proposal on screening foreign investments in EU

The European Commission has today published new draft legislation that would, if adopted, empower both Member State governments and the Commission to screen and block or unwind foreign investments in the European Union (EU) on the grounds of “security or public order”. Details of the proposal were outlined by Commission President Juncker in his State … Continue Reading

Commission report on temporary exclusion of ETDs from scope of Articles 35 and 36 of MiFIR

The European Commission has published a report to the European Parliament and the Council which provides an assessment of the need to temporarily exclude exchange-traded derivatives (ETDs) from the scope of Articles 35 and 36 of MiFIR. The report only covers ETDs and does not include transferable securities, money market instruments and over-the-counter derivatives. The … Continue Reading

ESMA updates transitional transparency calculations under MiFID II

The European Securities and Markets Authority (ESMA) has updated its interim transparency calculations (TTCs) for non-equity instruments under MiFID II. On 3 July 2017, ESMA published the TTCs for all non-equity instruments except for bonds. The publication for bonds was delayed because ESMA detected a data quality problem in the data provided and requested re-submission … Continue Reading

FIA due diligence questionnaire for MiFID II firms providing direct electronic access to clients

The Futures Industry Association (FIA), in co-operation with the Association for Financial Markets in Europe, the Alternative Investment Management Association and the Managed Funds Association have co-published a due diligence questionnaire for MiFID II investment firms providing direct electronic access (DEA) to their clients. The purpose of the template due diligence questionnaire is to allow … Continue Reading

AFME sets out view on the application of the MiFID II share trading obligation

The Association for Financial Markets in Europe (AFME) has published a paper setting out its view on the scope of the requirement in Article 23 of MiFIR for certain share trades to be carried out only on specified regulated trading venues. The AIFME states: “In our view, the share trading obligation applies only to a … Continue Reading

ESMA updates Q&A on MAR

The European Securities and Markets Authority (ESMA) has updated its Questions and Answers document (Q&As) on the Market Abuse Regulation (MAR). The purpose of the Q&As is to promote common, uniform and consistent supervisory approaches and practices in the day-to-day application of MAR. New questions and answers on the following topics have been added to … Continue Reading

Commission Delegated Regulation with regard to RTS for disclosure of encumbered and unencumbered assets

The European Commission has published the final draft of a Commission Delegated Regulation that supplements the Capital Requirements Regulation (CRR) with regard to regulatory technical standards for disclosure of encumbered and unencumbered assets. Article 443 of the CRR empowers the Commission to adopt, following the submission of draft technical standards by the European Banking Authority … Continue Reading
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