The Netherlands

Topic: Regulation and compliance

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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

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

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

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

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

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

Changes to exemption limit prospectus obligation and new notification and information obligations

On 6 September 2017, the decree amending the Exemption Regulation to the Act on the Financial Supervision (Vrijstellingsregeling Wft, the Exemption Regulation) (the Decree) was published in the Dutch Government Gazette (Staatscourant). The Decree will result in a number of changes as of 1 October 2017: A prospectus will not require approval from the Netherlands … Continue Reading

DNB issues guidance on transaction monitoring for banks

On 31 August 2017, the Dutch Central Bank (De Nederlandsche Bank, DNB) published a transaction monitoring guidance document for banks (the Guidance Document). Besides providing some legal background and the scope of the transaction monitoring rules, the Guidance Document also contains good practices with the aim to assist banks to design or improve their transaction … Continue Reading

Monthly MiFID II round-up

In August the following MiFID II blogs were published: New FCA webpage on position limits for commodity derivative contracts under MiFID II (31 August 2017); ESMA updates guidelines on transaction reporting under MIFID II and MiFIR (14 August 2017); FCA updates webpage on MiFID II applications and notifications (14 August 2017); FCA Q&As on MiFID … Continue Reading

European Commission publishes draft Delegated Regulation specifying the definition of systematic internaliser

Article 4(1)(20) of MiFID II sets out the definition of systematic internaliser. This definition is further expanded in Articles 12 to 16 of Delegated Regulation (EU) 2017/565 which supplements MiFID II as regards organisational requirements and operating conditions for investment firms and defined terms. In June 2017 the European Commission (Commission) held a four week … Continue Reading

Commission issues consultation on post trade in a CMU

The European Commission has issued a consultation document on post-trade in a Capital Market Union. The European Post-Trade Forum (EPTF), which the Commission created in February 2016, has also published a report that discusses the evolution of the EU post-trade landscape and progress in removing barriers. The purpose of the consultation is to gather stakeholders’ … Continue Reading

Responses to ESMA’s consultation on CRA endorsement guidelines

The European Securities and Markets Authority (ESMA) has published responses to its Consultation Paper: Update of the guidelines on the application of the endorsement regime under Article 4(3) of the Credit Rating Agencies Regulation published in April 2017. Respondents include: European Association of Credit Rating Agencies; Fitch Ratings; Moody’s Investors Service; S&P Global Ratings; M. … Continue Reading

Commission adopts Delegated Regulation supplementing MiFIR on the treatment of package orders

MiFIR introduces pre-trade and post-trade transparency requirements in respect of bonds, structured finance products, emission allowances and derivatives, subject to certain conditions and to certain waivers. In particular, Article 9(1)(e) of MiFIR provides for a waiver specific to package orders: under certain conditions, package orders can be granted a waiver from pre-trade transparency, but the … Continue Reading

ESMA updates guidelines on transaction reporting under MiFID II and MiFIR

The European Securities and Markets Authority (ESMA) has published an updated version of its guidelines on transaction reporting, order record keeping and clock synchronisation under MiFID II. The updated version of the guidelines corrects some unintended factual mistakes, typos and inconsistencies in the technical part of the guidelines. ESMA emphasises that none of the corrections … Continue Reading

ESMA publishes responses to its consultation on draft RTS for trading obligation for derivatives under MiFIR

On 20 June 2017, we blogged that the European Securities and Markets Authority (ESMA) had issued a consultation paper regarding its draft technical standards specifying the trading obligation for derivatives under the Markets in Financial Instruments Regulation. The consultation closed on 31 July 2017. ESMA has now published the responses it received to its consultation. … Continue Reading

London 40 minute briefing series – new dates for September 2017 to January 2018

We are pleased to announce the following new dates for our 40 minute briefing series: 6 September 2017: MiFID II – from implementation project to daily routine 4 October 2017: Senior Managers’ regime: accountable hierarchy in the financial services industry 1 November 2017: Financial crime update 6 December 2017: Wealth management roundup 10 January 2018: … Continue Reading