Germany

ACER updates REMIT guidance documentation

On 30 June 2020, the Agency for the Co-operation of Energy Regulators (ACER) updated the following documents concerning the Regulation on wholesale energy market integrity and transparency (REMIT): Q&As on REMIT (23rd edition). The new Q&As cover inside information, REMIT definitions, obligations and prohibitions for market participants. In particular, it deals with the question of … Continue Reading

ECB consultation on supervisory approach to consolidation for banks in the SSM

On 1 July 2020, the European Central Bank (ECB) published for consultation a guide intended to clarify its supervisory approach to consolidation projects involving euro area banks. With the guide the ECB intends to clarify, within the current regulatory framework, the principles underpinning the prudential supervisory approach it follows when determining whether the arrangements implemented … Continue Reading

EBA guidelines on treatment of structural FX under the CRR

On 1 July 2020, the European Banking Authority (EBA) issued final guidelines concerning the treatment of structural foreign exchange (FX) under the Capital Requirements Regulation (CRR). The purpose of the guidelines is to ensure harmonised EU interpretation and implementation of Article 352(2) of the CRR which deals with the concept and specific application of structural … Continue Reading

EBA and ESMA respond to Commission consultation on new EU Digital Finance Strategy

On 29 June 2020, the European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) issued their respective responses to the European Commission’s consultation on a new EU Digital Finance Strategy. In its response the EBA highlights the importance of technological neutrality in regulatory and supervisory approaches as a means to facilitate innovation … Continue Reading

EBA discussion paper on BRRD early intervention measures

On 26 June 2020, the European Banking Authority (EBA) published a discussion paper on the application of early intervention measures (EIMs) in the EU under the Bank Recovery and Resolution Directive (BRRD). The first part of the discussion paper discusses the results of a survey on the application of the EIMs that the EBA conducted … Continue Reading

FSB evaluation finds too-big-to-fail reforms made banks more resilient and resolvable, but gaps need to be addressed

On 28 June 2020, the Financial Stability Board (FSB) published for public consultation an evaluation of too-big-to-fail (TBTF) reforms for systemically important banks. The consultation report finds that the TBTF reforms have contributed to the resilience of the global banking sector and its ability to absorb, rather than amplify, shocks. Major banks are much better … Continue Reading

CRR “quick fix” published in the OJ

On 26 June 2020, there was published in the Official Journal of the EU (OJ), a Regulation making targeted amendments to the Capital Requirements Regulation (CRR) and the revised Capital Requirements Regulation (CRR2) (CRR “quick fix”). The “quick fix” legislation has been intended to help credit institutions to mitigate the impact of the COVID-19 outbreak … Continue Reading

Corrigendum to CRD IV

On 26 June 2020, there was published in the Official Journal of the EU, a Corrigendum to the CRD IV. The Corrigendum amends: Point (d)(iv) of Article 141(8) CRD IV so that it reads: ‘(iv) the payment of variable remuneration or discretionary pension benefits, whether by creation of a new obligation to pay, or payment … Continue Reading

IOSCO report – Good practices on processes for deference

On 26 June 2020, the International Organization of Securities Commissions (IOSCO) published a report, Good practices on processes for deference. The G20 has previously stated that jurisdictions and regulatory authorities should be able to defer to one another when it is justified by the quality of their respective regulatory and enforcement regimes, based on similar … Continue Reading

Commission Delegated Regulation amending the list of high risk jurisdictions for 4MLD published in OJ

On 19 June 2020, there was published in the Official Journal of the EU (OJ) the Delegated Regulation that the European Commission adopted on 7 May 2020 amending Delegated Regulation (EU) 2016/1675 which supplements the Fourth Anti-Money Laundering Directive by identifying those third countries that have strategic deficiencies in anti-money laundering and countering the financing … Continue Reading

ESRB opinion on ESMA report on post trade risk reduction services with regards to the clearing obligation

On 25 June 2020, the European Systemic Risk Board (ESRB) published an opinion on the earlier European Securities and Markets Authority’s report on post trade risk reduction services with regards to the clearing obligation. The ESRB opinion concludes that while the use of post trade reduction services in non-centrally cleared over-the-counter markets can help to … Continue Reading

ESRB opinion on ESMA report on central clearing solutions for pension scheme arrangements

On 25 June 2020, the European Systemic Risk Board (ESRB) published an opinion on the earlier European Securities and Markets Authority’s (ESMA) report on central clearing solutions for pension scheme arrangements (PSAs). The ESRB opinion concludes that the best way to remove obstacles for PSAs is to promote indirect clearing. The issues faced by PSAs, … Continue Reading

CPMI/IOSCO report – Central counterparty default management auctions

On 25 June 2020, the Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) published a report ‘Central counterparty default management auctions – Issues for consideration’. The purpose of the report is to provide a description of the issues that a central counterparty (CCP) should consider when planning and … Continue Reading

IOSCO consultation report – The use of artificial intelligence and machine learning by market intermediaries and asset managers

On 25 June 2020, the International Organisation of Securities Commissions (IOSCO) issued a consultation report ‘The use of artificial intelligence and machine learning by market intermediaries and asset managers’. The consultation report proposes guidance to assist IOSCO members in providing appropriate regulatory frameworks to supervise market intermediaries and asset managers that utilise artificial intelligence (AI) … Continue Reading

EBA report on draft ITS on supervisory reporting requirements for institutions under the CRR

On 25 June 2020, the European Banking Authority (EBA) published new Implementing Technical Standards (ITS) on public disclosures by institutions and revised final draft ITS on supervisory reporting that implements changes introduced in the revised Capital Requirements Regulation (CRR2) and the Prudential Backstop Regulation. The publication of the two ITS is a major step forward … Continue Reading

Commission Delegated Regulation on revisions to RTS on prudent valuation under CRR

On 25 June 2020, there was published in the Official Journal of the EU (OJ), Commission Delegated Regulation (EU) 2020/866 of 28 May 2020 amending Delegated Regulation (EU) 2016/1010 supplementing the Capital Requirements Regulation (CRR) with regard to regulatory technical standards for prudent valuation under Article 105(14) of the CRR. The Commission Delegated Regulation was … Continue Reading

Clearing houses: Council Presidency and European Parliament reach political agreement on recovery and resolution

On 23 June 2020, the European Council issued a press release stating that its Presidency and the European Parliament had reached political agreement on a common set of rules for central counterparty (CCP) recovery and resolution. The main objectives of the reforms are: To reduce the probability of CCP failure by introducing effective incentives for … Continue Reading

Roadmap – Consumer credit agreements and review of EU rules

On 23 June 2020, the European Commission published a roadmap concerning a review of the Consumer Credit Directive (CCD). Following a REFIT Platform opinion recommending an assessment of the relevance, effectiveness and efficiency of the standard information to be included in advertising concerning credit agreements, the Commission evaluated the CCD in 2018-2019. The full results … Continue Reading

Speech by Executive Vice-President Valdis Dombrovskis at the Digital Finance Outreach 2020 Closing conference

On 24 June 2020, the European Commission published a speech by Valdis Dombrovskis, European Commissioner for Financial Stability, Financial Services and Capital Markets Union (CMU), on digital finance. In terms of crypto-assets Mr Dombrovskis states that Europe is in a position to lead the way on regulation and for this a common approach is needed … Continue Reading

FMSB consults on algorithmic trading standards

On 23 June 2020, the FICC Markets Standards Board (FMSB) published for consultation a transparency draft of a statement of good practice on algorithmic trading in the wholesale fixed income, commodity and currency markets. The statement sets out 10 good practice statements which cover the governance of, and management of conduct risks associated with, the … Continue Reading

ESMA guidelines on the reporting to competent authorities under Article 37 of the MMF

On 22 June 2020, the European Securities and Markets Authority (ESMA) published the official translations of its guidelines on reporting to competent authorities under Article 37 of the Money Market Fund Regulation (MMFR). Member State national competent authorities (NCAs) to which the guidelines apply now have two months in which to notify ESMA whether they … Continue Reading

Basel Committee proposes amendment to capital rules for non-performing loan securitisations

On 23 June 2020, the Basel Committee on Banking Supervision (Basel Committee) published a technical amendment, ‘Capital treatment of securitisations of non-performing loans’. The technical amendment establishes a 100% risk weight for certain senior tranches of non-performing loan securitisations. The risk weight applicable to the other positions are determined by the existing hierarchy of approaches, … Continue Reading

COVID-19: European legislators approve CRR “quick fix”

On 18 June 2020 the European Parliament adopted its legislative report on the targeted amendments to the Capital Requirements Regulation (CRR “quick fix”). The Parliament’s position reflects a compromise agreed with Member States in informal negotiations that preceded the vote. This paves a way for a formal adoption, publication in the EU Official Journal and … Continue Reading

Webinar: LIBOR Transition: market update and managing key risks and challenges

 Tuesday 14 July | 08:30H BST We invite you to join our interactive webinar during which we will discuss recent LIBOR transition updates from a loans, derivatives and regulatory perspective as well as talk about some of the key risks and challenges from a disputes viewpoint. With some banks well underway with the due diligence … Continue Reading
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