There has been published in the Official Journal of the EU (OJ), Commission Delegated Regulation (EU) 2017/1799 of 12 June 2017 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. The Delegated Regulation enters into … Continue Reading
On 22 June 2017, the Financial Guidance and Claims Bill (the Bill) was introduced in the House of Lords. Since then it has passed through its first and second readings and proceeded to committee stage on 6 September 2017. The Bill follows an independent review led by Carol Brady in 2016, which recommended that regulatory … Continue Reading
The Presidency of the Council of the EU has published its first compromise proposal on the proposed Regulation amending the European Market Infrastructure Regulation (EMIR). With respect to the original European Commission legislative text, new text is marked in underlined bold and deletions are indicated through strikethrough. View Proposal for a Regulation of the European … Continue Reading
We are pleased to advise that the recording for our September 2017 MiFID II Academy webinar is now available. To access the recording, please click here… Continue Reading
The FCA has published a new webpage on MiFID II authorisations and variation of permissions. On its webpage, the FCA highlights that some proprietary traders who are not authorised may need to be authorised under MiFID II. The FCA provides the example of unregulated proprietary traders who use a form of direct electronic access (DEA) … Continue Reading
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
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
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
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
The FCA has published a new webpage on position limits for commodity derivative contracts under MiFID II. The webpage lists the commodity derivative contracts that the FCA identified as trading on a UK trading venue which, from 3 January 2018, will have a bespoke position limit set against them. The list will be subject to … Continue Reading
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
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
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
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
The FCA has published a set of Q&As containing information on position limits and position reporting for commodity derivatives under MiFID II. The purpose of the Q&A is to assist firms with their preparations for MiFID II implementation. The Q&As include questions and answers on: ancillary activities notification; position limits; position limit exemption applications; and … Continue Reading
The FCA has updated its webpage on the introduction of a position limits and reporting regime for commodity derivatives under MiFID II. From 3 January 2018, trading venues are required to notify the FCA by email when the total open interest of any commodity derivative reaches any of the amounts of lots or number of securities in issue … Continue Reading
The FCA has published a webpage containing an analysis of circuit breakers in UK equity markets. The FCA first explains how circuit breakers work and then sets out its assessment of how market quality changes before, during and after the triggering of a circuit breaker, and how different groups of market participants behave during these … Continue Reading
The FCA has updated its webpage concerning MiFID II and the introduction of position limits and reporting regime for commodity derivatives. The FCA notes that under MiFID II, firms or individuals who trade in commodity derivatives on a professional basis, may under article 2(1)(j) MiFID II be able to make use of an exemption from … Continue Reading
The FCA has published a new webpage concerning the MDP entity portal. The Market Data Processor (MDP) system will receive MiFID II market data from the UK financial industry and also market data, where applicable, from non-UK EEA financial market participants. The MDP system will interface to ESMA’s new financial instrument reference data system, including … Continue Reading
The FCA has published a new webpage on passporting under MiFID II. The webpage contains links to the following forms: service passport: MiFID II notice of intention to provide cross-border services or to amend existing cross-border services passport; branch passport: MiFID II notice of intention to establish a branch or change branch particulars; tied agent … Continue Reading
The FCA has updated its webpage on data reporting services providers (DRSPs). Among other things, the FCA notes that it is now able to accept formal applications from entities wishing to provide data reporting services (DRSs). For applications received from 3 July 2017, it will determine an application for authorisation or verification within six months, … Continue Reading
The second paragraph of Article 48(5) of MiFID II determines that trading venues shall report the parameters for halting trading and any material changes to those parameters to their national competent authority (NCA) in a consistent and comparable manner, and that the NCA shall in turn report them to ESMA. The guidelines on the calibration … Continue Reading
The European Securities and Markets Authority (ESMA) has published a consultation paper containing draft guidelines on certain aspects of the suitability requirements under MiFID II. The purpose of the draft guidelines is to enhance clarity and foster convergence in the implementation of certain aspects of the MiFID II suitability requirements, replacing the existing ESMA guidelines … Continue Reading
The European Securities and Markets Authority (ESMA) has updated its MiFID II / MiFIR Q&As on: commodity derivatives issues; market data issues; and market structure issues. ESMA has also added two new questions and answers to its Q&As on investor protection topics under MiFID II / MiFIR. The additions to the Q&As relate to best … Continue Reading
