Lucy Dodson (UK)

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New split the difference podcast: Markets in EU and UK – Recent and upcoming changes to EMIR

In the latest in our podcast series, split the difference, which explores divergence between the EU and UK regulatory regimes in the markets space, Floortje Nagelkerke, Hannah Meakin, Anna Carrier, Lucy Axford and Simon Lovegrove discuss the recent and upcoming changes to EMIR. This includes the EMIR 3.0 proposal, the clearing obligation for pension scheme … Continue Reading

The FCA’s Consultation Paper on the perimeter of the definition of trading venue

There are three types of trading venue under MiFID II: Regulated Markets, Multilateral Trading Facilities and Organised Trading Facilities. MiFID II introduced a definition of multilateral system[1], still relevant in the UK, which is common to all types of trading venue and requires that all multilateral systems operate in accordance with Title II or Title … Continue Reading

Commission and the US CFTC announce a common approach on certain derivatives trading venues

The European Commission and the US Commodity Futures Trading Commission (CFTC) have announced a common approach regarding certain derivatives trading venues authorised in the EU and in the United States of America. The aim of the common approach is to ensure that EU counterparties are able to comply with the trading obligation under article 28 … Continue Reading

Commission adopts three Delegated Regulations supplementing Benchmarks Regulation

The European Commission has adopted the following Delegated Regulations supplementing the Regulation on indices used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds (Benchmarks Regulation): Commission Delegated Regulation (EU) …/… of 29.9.2017 supplementing the Benchmarks Regulation specifying technical elements of the definitions laid down in paragraph 1 … Continue Reading

New FCA webpage, checklist and compliance statement templates for benchmark administrators’ authorisation and registration applications under BMR

The FCA has published a new webpage for benchmark administrators applying for authorisation or registration under the Regulation on indices used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds (Benchmarks Regulation). The webpage states that while formal applications open on 1 January 2018, from 1 October 2017 … Continue Reading

Commission adopts amending Delegated Regulation on RTS on consolidated tape for non-equity products under MiFID II

The European Commission has adopted a Commission Delegated Regulation amending Commission Delegated Regulation (EU) 2017/571 supplementing MiFID II with regard to regulatory technical standards (RTS) on authorisation, organisational requirements and the publication of transactions for data reporting services providers. The amending Delegated Regulation sets out RTS specifying the scope of the consolidated tape for non-equity … 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

ESMA updates Q&A on EMIR implementation

The European Securities and Markets Authority (ESMA) has updated its Q&A on practical questions regarding the European Markets Infrastructure Regulation (EMIR). The updated Q&A includes a new answer in relation to reporting of trades cleared by a clearing house which is not a central counterparty (CCP) under the EMIR definition. The Q&A clarifies that such … Continue Reading

Implementation monitoring of the PFMI: Third update to Level 1 assessment report

In 2012 the Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) issued the Principles for financial market infrastructures (PFMI). In line with the G20’s expectations, CPMI and IOSCO members have undertaken to incorporate the 24 principles (the Principles) and the five responsibilities (the Responsibilities) included in the PFMI … Continue Reading

Council publishes Corrigendum to MiFID II

The Council of the EU has published a Corrigendum to MiFID II that sets out certain proposed amendments to obvious errors in a number of language versions of the Directive. The English language version of the amendment can be found on page 7 of the Corrigendum. The amendment concerns a minor amendment to the definition … Continue Reading

Commission adopts latest MiFIR Delegated Regulation

The European Commission has adopted a Commission Delegated Regulation supplementing MiFIR with regard to regulatory technical standards (RTS) on clearing access in respect of trading venues and central counterparties. The power to adopt the Delegated Regulation is provided for under Article 35(6) and Article 36(6) of MiFIR. Under these provisions, the Commission is empowered to … Continue Reading

ESMA updates document on waivers from MiFID pre-trade transparency requirements

Under MiFID operators of regulated markets (RMs) and multilateral trading facilities (MTFs) must make public the current bid and offer prices and the depth of trading interests in respect of shares admitted to trading on an RM unless exemptions apply. However, MiFID allows Member State competent authorities (NCAs) to waive the obligation for operators of … Continue Reading

MAR Delegated and Implementing Regulations published in OJ

The following have been published in the Official Journal of the EU: Commission Delegated Regulation (EU) 2016/960 of 17 May 2016 supplementing the Market Abuse Regulation (MAR) with regard to regulatory technical standards (RTS) for appropriate arrangements, systems and procedures for disclosing market participants conducting market soundings; Commission Implementing Regulation (EU) 2016/959 of 17 May … Continue Reading

Inside information disclosure under MAR: ESMA disagrees with Commission’s proposal on EAMPs

The European Securities and Markets Authority (ESMA) has issued an opinion in response to a notification by the European Commission (the Commission) about intended changes to a draft Implementing Technical Standard (ITS) on the disclosure of inside information under the Market Abuse Regulation (MAR). On 28 September 2015, ESMA submitted draft ITS on the technical … Continue Reading

Multi-venue trading increases liquidity in EU equity markets despite duplicate orders

The European Securities and Markets Authority (ESMA) has published an economic report on order duplication and liquidity measurement in EU equity markets.  The report is the second part of ESMA’s high frequency trading (HFT) research. Like the first report ESMA’s starting point is the change in the trading landscape of equity markets over the last … Continue Reading

ESMA updates its EMIR Q&A

The European Securities and Markets Authority has published an updated Q&A document which includes new answers on the clearing obligation, specifically about the self-categorisation that is necessary in order to establish which counterparties belong to which categories.  The Q&A also includes some clarifications on how counterparties should handle the situation where some of their counterparties … Continue Reading

Commission adopts MiFIR Delegated Regulation on RTS on access to benchmarks

MiFIR provides for the non-discriminatory access for central counterparties and trading venues to licences of and information relating to benchmarks which are used to determine the value of some financial instruments for trading and clearing purposes. Draft regulatory technical standards (RTS) were submitted by to the European Commission by the European Securities and Markets Authority … Continue Reading

Commission Implementing Regulation laying down ITS with regard to the content and format of description of functioning of MTFs and OTFs

There has been published in the Official Journal of the EU (OJ), the Commission Implementing Regulation laying down implementing technical standards (ITS) with regard to the content and format of the description of the functioning of multilateral trading facilities (MTFs) and organised trading facilities (OTFs). The Implementing Regulation enters into force on the twentieth day … Continue Reading

Commission adopts Delegated Regulation on RTS for admission of financial instruments to trading on regulated markets under MiFID II

Article 51(1) of MiFID II requires a regulated market to have clear and transparent rules regarding the admission of financial instruments to trading. Those rules must ensure that any instruments admitted to trading are capable of being traded in a fair, orderly and efficient manner and, in case of transferable securities, are freely negotiable. Under … Continue Reading

Commission Delegated Regulation on RTS relating to the ratio of unexecuted orders to transactions under MiFID II Directive

MiFID II introduces specific requirements with respect to algorithmic trading, both for investment firms and trading venues. Trading venues must, amongst other things, have in place effective systems, procedures and arrangements to ensure algorithmic trading systems cannot create or contribute to disorderly trading conditions on their market. This includes a limitation of the messages that … Continue Reading

FCA comments on application of best execution to FX derivative and spot transaction

On 22 April 2016, the Foreign Exchange Joint Standing Committee held an additional meeting at the PRA. The minutes of that meeting have now been published, noting an FCA presentation where certain observations were made on the application of best execution to FX derivative and spot transactions. The minutes state: “Edwin Schooling Latter (Financial Conduct … Continue Reading

EBA agrees with the Commission on changes to the amended technical standards on benchmarking of internal approaches

Article 78 of the CRD IV requires member state competent authorities to make an annual assessment of the quality of internal approaches used for the calculation of own funds requirements. The same article requires the European (EBA) to produce a report to assist competent authorities in this assessment. The EBA’s report is based on data … Continue Reading

ESMA proposes to amend draft MiFIR standard on transaction reporting

On 28 September 2015, the European Securities and Markets Authority (ESMA) submitted to the European Commission draft regulatory technical standards on reporting obligations under article 26 of MiFIR (RTS 22). However, ESMA has noticed that article 2 of RTS 22 needs amendment due to an unintentional omission and has therefore now published a final report. … Continue Reading