Jochen Vester (UK)

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ESMA letter on MiFIR review – transparency regime for single name-CDS and standardised OTC-derivatives

On 2 June 2023, there was published a letter from the European Securities and Markets Authority to the European Commission, the European Parliament and the Council of the EU concerning the MiFIR review and the current lack of transparency in the EU for over-the-counter (OTC) derivatives, notably single-name credit default swaps (CDS). Among other things … Continue Reading

HM Treasury publishes amendments to the Financial Services and Markets Bill regarding overseas CCPs

On 26 May 2023, HM Treasury (HMT) published a policy paper outlining amendments to the Financial Services and Markets Bill (FSM Bill), concerning overseas central counterparties (CCPs). In January 2023, HMT introduced an amendment to the FSM Bill which, if enacted, would give the Bank of England (the Bank) the power to extend the maximum … Continue Reading

European Commission published Commission Delegated Regulation supplementing Directive (EU) 2019/2034 with regard to regulatory technical standards specifying the measurement of risks or elements of risks not covered or not sufficiently covered by the own funds requirements

On 25 May 2023, the European Commission published Commission Delegated Regulation (EU) of 25 May 2023 supplementing the Investment Firms Directive with regard to regulatory technical standards specifying the measurement of risks or elements of risks not covered or not sufficiently covered by the own funds requirements set out in parts three and four of … Continue Reading

PRA publishes Policy Statement PS6/23, ‘Model risk management principles for banks’

On 17 May 2023, the Prudential Regulation Authority (PRA) published Policy Statement PS6/23, ‘Model risk management principles for banks’, which contains a new supervisory statement (SS1/23) on the topic, as well as the PRA’s feedback to responses to its earlier consultation CP6/22. SS1/23 sets out the PRA’s expectations for banks’ management of model risk, with … Continue Reading

EBA draft RTS on the prudential consolidation of an investment firm group

On 12 May 2023, the European Banking Authority (EBA) issued a final report containing draft regulatory technical standards (RTS) on the scope and methods for consolidation of an investment firm group under the Investment Firms Regulation (IFR). The final report follows a consultation paper that the EBA published in June 2020 which included draft RTS … Continue Reading

EBA publishes report on convergence of supervisory practices in 2022

On 4 May 2023, the European Banking Authority (EBA) published its annual report on convergence of supervisory practices in 2022. In accordance with Article 107 of the Capital Requirements Directive IV, the EBA reports annually to the European Parliament and Council on the degree of convergence of supervisory practices. The report describes the effects of … Continue Reading

European Commission publishes Delegated Regulations on CCP recovery and resolution

On 3 May 2023, the European Commission published the following: These Delegated Regulations shall come into force on the twentieth day following that of their publication in the Official Journal of the European Union.… Continue Reading

Final draft RTS on the determination of the exposure value of SES in synthetic securitisations

On 25 April 2023, the European Banking Authority (EBA) published a report containing final draft regulatory technical standards (RTS) that specify how originator institutions are to determine the exposure value referred to in Article 248(1)(e) of the Capital Requirements Regulation (CRR) (as amended by Regulation 2021/558), taking into account the relevant losses expected to be … Continue Reading

Commission Delegated Regulation on the calculation of the own funds requirements for market risk for non-trading book positions subject to foreign exchange risk or commodity risk and the treatment for those positions for the purposes of the regulatory back-testing requirements and the profit and loss attribution requirement under the alternative internal model approach

On 21 April 2023, the European Commission published Commission Delegated Regulation (EU) of 20 April 2023 supplementing the Capital Requirements Regulation on the calculation of the own funds requirements for market risk for non-trading book positions subject to foreign exchange risk or commodity risk and the treatment for those positions for the purposes of the … Continue Reading

European Commission publishes Commission Delegated Regulation specifying the requirements for the internal methodology or external sources used under the internal default risk model for estimating default probabilities and losses given default

On 21 April 2023, the European Commission published Commission Delegated Regulation (EU) of 20 April 2023, supplementing the Capital Requirements Regulation with regard to regulatory technical standards (RTS) specifying the requirements for the internal methodology or external sources used under the internal draft risk model for estimating default probabilities and losses given default. The final … Continue Reading

Commission Delegated Regulation on amending the RTS in Delegated Regulation 2018/1229 as regards the penalty mechanism for settlement fails relating to cleared transactions submitted by CCPs for settlement

On 19 April 2023, the European Commission published Commission Delegated Regulation (EU) of 19.4.2023 on amending the regulatory technical standards laid down in Delegated Regulation (EU) 2018/1229 as regards the penalty mechanism for settlement fails relating to cleared transactions submitted by CCPs for settlement. The Commission Delegated Regulation removes the separate process established in Article … Continue Reading

ICMA publishes updated version of its SFTR reporting recommendations

On 6 April 2023, the International Capital Market Association (ICMA) published the ninth update to its recommendations for reporting under SFTR. These ICMA recommendations for reporting under the EU Securities Financing Transactions Regulation (SFTR) have been created to support ICMA members in their efforts to implement and apply the complex SFTR reporting requirements. They offer … Continue Reading

Basel Committee publishes various technical amendments and FAQs

On 30 March 2023, the Basel Committee on Banking Supervision published updated a Technical Amendment document containing various technical amendments and FAQs. The Technical Amendment document contains proposed amendments to the Basel Framework relating to the: The deadline for comments on the proposed amendments is 15 May 2023. The Basel Committee has also finalised a … Continue Reading

Silicon Valley Bank UK: the regulatory tools in play

Introduction: what are the facts? The Bank of England (BoE) has a number of resolution tools at its disposal which are provided for in legislation following the 2008 global financial crisis. These tools are designed to protect and enhance UK financial stability, protect public funds and ensure the continuity of banking services. These tools have … Continue Reading

EBA consults on standards for supervisors assessing the new market risk internal models under the fundamental review of the trading book

On 24 March 2023, the European Banking Authority (EBA) published a Consultation Paper on draft Regulatory Technical Standards (RTS) on the assessment methodology under which Member State competent authorities (NCAs) verify an institution’s compliance with the internal models approach as per Article 32az(8) of the revised Capital Requirements Regulation (CRR). One of the prerequisites for … Continue Reading

Published in the OJ: Commission Delegated Regulation (EU) 2023/662 as regards the methodology for the calculation of liabilities arising from derivatives

On 22 March 2023, there was published in the Official Journal of the European Union (OJ) Commission Delegated Regulation (EU) 2023/662 of 20 January 2023 amending Delegated Regulation (EU) 2015/63 as regards the methodology for the calculation of liabilities arising from derivatives. Regulation (EU) 2019/876 included an amendment to the Capital Requirements Regulation (CRR) which … Continue Reading

EBA consults on draft ITS amending Regulation (EU) 2021/453 with regard to the specific reporting requirements for market risk

On 21 March 2022, the European Banking Authority (EBA) published a Consultation Paper (CP) on draft Implementing Technical Standards (ITS) amending Regulation (EU) 2021/453 with regard to the specific reporting requirements for market risk. As the full implementation of the Fundamental Review of the Trading Book (FRTB) in the EU approaches, and with the aim … Continue Reading

EBA Handbook on data submissions for supervisory benchmarking of internal models

On 16 March 2023, the European Banking Authority (EBA) published a Handbook on data submissions for supervisory benchmarking of internal models. The Handbook is an online tool that provides guidance and links to relevant documents and information for the supervisory benchmarking to facilitate their accessibility. In particular, the Handbook includes overviews for all applicable Q&As … Continue Reading

Commission Delegated Regulation supplementing the Regulation on a framework for the recovery and resolution of CCPs with regard to RTS specifying the contents of the resolution plan

On 14 March 2023, the European Commission published Commission Delegated Regulation (EU) of 14 March 2023 supplementing Regulation (EU) 2021/23 of the European Parliament and of the Council with regard to regulatory technical standards (RTS) specifying the contents of the resolution plan. This delegated act sets out the contents of the resolution plan in accordance … Continue Reading

Commission Delegated Regulation supplementing the Regulation on a framework for the recovery and resolution of CCPs with regard to RTS specifying the content of the written arrangements and procedures for the functioning of the resolution colleges

On 14 March 2023, the European Commission published Commission Delegated Regulation (EU) of 14 March 2023 supplementing Regulation (EU) 2021/23 of the European Parliament and of the Council with regard to regulatory technical standards specifying the content of the written arrangements and procedures for the functioning of the resolution colleges. This delegated act sets out … Continue Reading

PRA Consultation Paper 6/23 ‘The non-performing exposures capital deduction’

On 14 March 2023, the PRA published Consultation Paper 6/23 ‘The non-performing exposures capital deduction’ (CP6/23). In CP6/23 the PRA sets out a proposal to remove the Common Equity Tier 1 (CET1) deduction requirement in the PRA Rulebook, regarding non-performing exposures (NPEs) that are treated as insufficiently covered by firms’ accounting provisions. Among other things … Continue Reading

BoE publishes report on climate-related risks and the regulatory capital frameworks

On 13 March 2023, the Bank of England (BoE) published a report on climate-related risks and the regulatory capital frameworks. The report includes updates on capability and regime gaps, capitalisations timelines, and areas for future research and analysis. Background In October 2021, the BoE published its Climate Change Adaptation Report (CCAR) which set out early … Continue Reading

Published in the OJ: Delegated Regulations supplementing the CCP Recovery and Resolution Regulation

On 3 March 2023, there was published in the Official Journal of the European Union (OJ), Commission Delegated Regulation (EU) 2023/450 of 25 November 2022 supplementing the Central Counterparty Recovery and Resolution Regulation with regard to regulatory technical standards specifying the order in which CCPs are to pay the recompense referred to in Article 20(1) … Continue Reading
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