Lucy Dodson (UK)

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Commission adopts Delegated Regulation amending EMIR RTS as regards the time horizons for the liquidation period to be considered for the different classes of financial instruments

The European Commission has adopted a Delegated Regulation amending Delegated Regulation No. 153/2013 that supplements the European Markets Infrastructure Regulation. Delegated Regulation No. 153/2013 lays down regulatory technical standards on requirements for central counterparties (CCPs) regarding the time horizons for the liquidation period to be considered for the different classes of financial instruments. The Delegated … Continue Reading

Commission Delegated Regulation on RTS on the clearing obligation

There has been published in the Official Journal of the EU (OJ) the European Commission Delegated Regulation supplementing the Regulation on over-the-counter derivative transactions, central counterparties and trade repositories with regard to regulatory technical standards on the clearing obligation for certain credit derivative contracts. The Delegated Regulation comes into force 20 days after publication in … Continue Reading

ESMA announces EU-wide stress tests for CCPs

The European Securities and Markets Authority (ESMA) has announced that it will publish its first EU-wide stress tests for central counterparties (CCPs) on 29 April 2016. The aim of the stress test is to assess the resilience and safety of CCPs and to identify possible vulnerabilities. ESMA will conduct the stress test in co-operation with … Continue Reading

ISDA updates EMIR classification letter

The International Swaps and Derivatives Association (ISDA) has published an updated classification letter that will enable counterparties to notify each other of their status for clearing and other requirements under the European Market Infrastructure Regulation (EMIR). The updated letter covers the clearing obligation for certain interest rate derivatives classes denominated in European Economic Area (EEA) … Continue Reading

ESMA final report on review of EMIR standards relating to CCP client accounts

The European Securities and Markets Authority (ESMA) has published its final report on the review of Article 26 of Delegated Regulation 153/2013 which contains regulatory technical standards (RTS) supplementing the European Markets Infrastructure Regulation that relate to central counterparties’ (CCPs) client accounts. The report summarises the answers received following the publication of the consultation paper … Continue Reading

ESMA final draft RTS on access to data and aggregation and comparison of data under EMIR

The European Securities and Markets Authority (ESMA) has published a report containing final draft regulatory technical standards (RTS) relating to data access, and aggregation and comparison of data under European Markets Infrastructure Regulation. The report contains comments received during the consultation period, ESMA’s considerations on those and ESMA’s final proposal, including the legal text of … Continue Reading

ESMA updates its EMIR Q&A

The European Securities and Markets Authority has updated its Questions and Answers (Q&A) document regarding the implementation of the European Markets Infrastructure Regulation. The updated document includes a new Q&A regarding the population of the “clearing obligation” field in trade reports. It explains how the description of the field should be interpreted, how it should … Continue Reading

ESMA: no need to temporarily exclude ETDs from open access to trading venues and CCPs

Article 52(12) of the Markets in Financial Instruments Regulation (MiFIR) requires the European Commission to present by 3 July 2016 a report to the European Parliament and the Council assessing the need to temporarily exclude exchange-traded derivatives (ETDs) from the scope of the non-discriminatory access provisions to central counterparties (CCPs) and trading venues in Articles … Continue Reading

ESMA to cooperate with South Korean regulators on CCPs

The European Securities and Markets Authority has established a Memorandum of Understanding (MoU) under the European Markets Infrastructure Regulation (EMIR) with the South Korean Financial Services Commission and the Financial Supervisory Service respectively. The MoU establishes cooperation arrangements, including the exchange of information, regarding central counterparties which are established and authorised or recognised in South … Continue Reading

The global code of conduct for the foreign exchange market

The Bank for International Settlements (BIS) has published a speech given by Guy Debelle (Assistant Governor (Financial Markets), Reserve Bank of Australia) concerning the development of the global code of conduct for the foreign exchange market (the Code). Key points in Mr Debelle’s speech include: work to develop the Code commenced in May 2015 when … Continue Reading

Commission adopts equivalence decision for CCPs in USA

On 10 February 2016, the European Commissioner for Financial Stability, Financial Services and Capital Markets Union, Jonathan Hill and the United States Commodity Futures Trading Commission (CFTC) Chairman Timothy Massad announced a common approach regarding requirements for central counterparties (CCPs). Two key elements of the common approach are EU equivalence and CFTC substituted compliance. The … Continue Reading

LEI ROC process for collecting data on direct and ultimate parents of legal entities

Following earlier consultations in 2015 the Legal Entity Identifier Regulatory Oversight Committee (LEI ROC) has published a document setting out its latest policy design process for collecting data on direct and ultimate parents of legal entities, to be implemented within the Global Legal Entity Identifier System. View LEI ROC process for collecting data on direct … Continue Reading

FCA and HM Treasury respond to Bloxham recommendations

The FCA and HM Treasury have published the following documents respectively: Discussion Paper 16/2: CASS 7A and the Special Administration Regime Review (DP16/2); and Consultation document: Reforms to the investment bank special administration regime. In DP16/2 the FCA seeks feedback on a number of aspects of the client assets regime, in particular regarding the client … Continue Reading

FCA and BoE complete review of MoU on market infrastructure

The FCA has published the Memorandum of Understanding (MoU) that it entered into with the Bank of England (BoE) that sets out how they cooperate with each other in relation to the supervision of markets and market infrastructure. Martin Wheatley, FCA CEO, and Sir Jon Cunliffe, BoE Deputy Governor Financial Stability have concluded that the MoU’s … Continue Reading

Commission adopts Delegated Regulation relating to EMIR clearing obligation for certain credit derivative contracts

Article 5 of the EU Regulation on derivatives, central counterparties and trade repositories (EMIR) provides that the European Commission (Commission) shall, on the basis of a proposal from the European Securities and Markets Authority (ESMA), determine the types of over-the-counter (OTC) contracts that should be subject to mandatory clearing by a central counterparty. After submission … Continue Reading

ESMA publishes EMIR related compliance tables

The European Securities and Markets Authority has published a table that sets out which Member State competent authorities comply or intend to comply with its: guidelines for establishing consistent, efficient and effective assessments of interoperability arrangements; guidelines and recommendations on written agreements between members of central counterparty colleges; and guidelines for establishing consistent, efficient and … Continue Reading

ESMA consults on implementation of the Benchmarks Regulation

The European Securities and Markets Authority (ESMA) has published a Discussion Paper seeking views on its policy orientations and initial proposals for the potential Level 2 measures under the Regulation on indices used as benchmarks in financial instruments and financial contracts (the Benchmarks Regulation). The Discussion Paper seeks views in the following areas: definition of benchmarks … Continue Reading

European Commission mandate to ESMA for technical advice on delegated acts under Benchmarks Regulation

The European Commission has published a mandate it has sent to the European Securities and Markets Authority (ESMA) requesting technical advice on possible delegated acts concerning the Regulation on indices used as benchmarks in financial instruments and financial contracts (the Benchmarks Regulation). In particular, the mandate notes that ESMA is invited to provide technical advice … Continue Reading

FCA effectively brings forward to 2016 the implementation of Article 37 MiFIR

The FCA has published Policy Statement 16/4: Fair, reasonable and non-discriminatory access to regulated benchmarks (PS16/4). In PS16/4 the FCA sets out final Handbook text and its responses to its earlier consultation on fair, reasonable and non-discriminatory (FRAND) access to regulated benchmarks (Consultation Paper 15/18: Fair, reasonable and non-discriminatory access to regulated benchmarks) Having carefully … Continue Reading

Dear CEO letter on client take-on review in firms offering CFD products

The FCA has published a Dear CEO letter following a recent review of the procedures for taking on new clients in a sample of ten firms that offer contract for difference (CFD) products. The firms sampled offer CFD products to clients on a non-advised basis. The FCA identified several areas of concern which it has … Continue Reading

ESMA issues technical standards on settlement discipline under CSDR

The European Securities and Markets Authority (ESMA) has published draft regulatory technical standards (RTS) on settlement discipline that the supervisory authority has to deliver for the implementation of the Central Securities Depository Regulation (CSDR). The draft RTSs include details on: measures for preventing settlement fails through various functionalities including automated trading, partial settlement; and hold … Continue Reading

ESMA issues opinions on UK pension schemes to be exempt from central clearing under EMIR

Article 89(2) of the European Market Infrastructure Regulation (EMIR) provides that before taking its decision related to the pension scheme exemption from the clearing obligation, the relevant competent authority needs to obtain the opinion of the European Securities and Markets Authority (ESMA) (which must also consult the European Insurance and Occupational Pensions Authority). ESMA has … Continue Reading
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