Germany

ESMA final report on technical standards on content and format of the STS notification for on-balance sheet securitisations

On 12 October 2021, the European Securities and Markets Authority (ESMA) published a final report on technical standards specifying the content and format of the simple, transparent and standardised (STS) securitisation notification for on-balance sheet securitisations. Regulation (EU) 2021/557 amended the framework under the Securitisation Regulation (SECR) to on-balance sheet securitisations (also called synthetic securitisations). … Continue Reading

FSB report – Policy proposals to enhance money market fund resilience

On 11 October 2021, the Financial Stability Board (FSB) published a report which forms a key part of its work programme on non-bank financial intermediation. The policy proposals in the report aim to address systematic risk and minimise the need for future extraordinary central bank interventions to support the sector alongside enhancing money market fund … Continue Reading

Commission Delegated Regulation supplementing MAR with regard to RTS containing a template document for cooperation arrangements with third countries

By Simon Lovegrove (UK) on October 12, 2021 Posted in France, Germany, Italy, Market Abuse, Market abuse, Market abuse, Market Abuse, Market abuse, The Netherlands, United Kingdom

On 11 October 2021, there was published in the Official Journal of the EU (OJ) Commission Delegated Regulation (EU) 2021/1783 of 2 July 2021 supplementing the Market Abuse Regulation (MAR) with regard to regulatory technical standards (RTS) containing a template document for cooperation arrangements with third countries. Article 26(1) of MAR requires the competent authorities … Continue Reading

ESMA speech – ESMA as a data driven regulator and supervisor

By Simon Lovegrove (UK) on October 12, 2021 Posted in Germany, Italy, Regulation and Compliance, Regulation and compliance, Regulation and compliance, Regulation and compliance, The Netherlands, United Kingdom

On 8 October 2021, the European Securities and Markets Authority (ESMA) published a speech by Natasha Cazenave (Executive Director, ESMA) in which she discussed the European Supervisory Authority’s priorities for 2022 including data. ESMA’s priorities for 2022 include: aiming to respond to challenges faced by the EU, its capital markets, and its investors; supporting three … Continue Reading

FSB letter to G20 Finance Ministers and Central Bank Governors

On 6 October 2021, the Financial Stability Board (FSB) published a letter from its chair to G20 Finance Ministers and Central Bank Governors. The letter focuses on two key areas of the FSB’s work: Developing a more resilient NBFI sector The letter notes that following the market turmoil in March 2020, the FSB agreed on … Continue Reading

CPMI calls for ideas on solutions to expand PvP settlement

On 7 October 2021, the Committee on Payments and Market Infrastructures (CPMI) issued a call for ideas on payment-versus-payment (PvP) mechanisms. As part of the G20 cross-border payments roadmap, the CPMI is developing proposals for increased PvP adoption by encouraging enhancements to existing PvP arrangements and/or the design of new public and/or private sector solutions. … Continue Reading

FSB / IMF latest progress report on the G20 Data Gaps Initiative

On 8 October 2021, the Financial Stability Board and the International Monetary Fund co-published their sixth progress report on the G20 Data Gaps Initiative. Key messages in the progress report include: Significant progress has been achieved during phases 1 and 2 of the Data Gaps Initiative in closing identified policy-relevant data gaps. Although the initiative … Continue Reading

EBA publishes its work programme for 2022

By Simon Lovegrove (UK) on October 8, 2021 Posted in France, General, General, General, Germany, Italy, The Netherlands, United Kingdom

On 5 October 2021, the European Banking Authority (EBA) published its annual work programme for 2022, describing its activities and tasks as well as key strategic areas of work for next year. For 2022, the EBA has set five vertical priorities: Monitoring and updating the prudential framework for supervision and resolution. Revisiting and strengthening the … Continue Reading

ECSDA issues updated CSDR penalties framework

By Hannah Meakin (UK) on October 8, 2021 Posted in Clearing and Settlement, Clearing and settlement, Clearing and settlement, Clearing and Settlement, Clearing and settlement, France, Germany, Italy, The Netherlands, United Kingdom

On 5 October 2021, the European Central Securities Depositories Association (ECSDA) published an updated version of the ECSDA CSDR Settlement Fails Penalties Framework. The current version of the document provides the changes in comparison with the previous one highlighted in grey and the assumptions pending European Securities and Markets Authority and European Commission feedback in … Continue Reading

FSB report on the regulation, supervision and oversight of “global stablecoin” arrangements

On 7 October 2021, the Financial Stability Board (FSB) published a progress report setting out the progress made on the implementation of its high-level recommendations for the regulation, supervision and oversight of global stablecoin arrangements. The progress report incorporates the results of a stocktake of the implementation of the FSB’s high level recommendations in 21 … Continue Reading

CPMI and IOSCO publish guidance, call for comments on stablecoin arrangements

On 5 October 2021, the Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) published a consultative report that proposes guidance on the application of the Principles for Financial Market Infrastructures (PFMIs) to systemically important stablecoin arrangements (SAs), including the entities integral to such arrangements. The proposed guidance focuses … Continue Reading

CON and ENVI Members voted jointly on Taxonomy objections

By Daniel Nevzat (UK) on October 8, 2021 Posted in ESG, ESG, ESG, ESG, ESG, France, Germany, Italy, The Netherlands, United Kingdom

On 7 October 2021, the European Parliament issued a press release stating that ECON and ENVI Members had voted jointly to reject a Commission Delegated Regulation which supplements the Taxonomy Regulation by specifying the technical screening criteria under which certain economic activities qualify as contributing substantially to climate change mitigation and climate change adaptation and … Continue Reading

ISDA – RFR Conventions and IBOR Fallbacks – Product Table

On 4 October 2021, the ISDA issued a product table for RFR conventions and IBOR fallbacks. The table is intended to help counterparties understand how the fallbacks would function in their legacy and new derivatives that reference IBORs. It sets out how fallbacks in ISDA’s amended documentation (without reference to the 2021 ISDA Interest Rate … Continue Reading

ECB Banking Supervision’s post-pandemic priorities – the way forward

By Martin Krause (DE) on October 6, 2021 Posted in Banking, Banking, Banking, Banking, France, Germany, Italy, The Netherlands

On 5 October 2021, the European Central Bank published a speech by a member of its Supervisory Board, Edouard Fernandez-Bollo. The speech is entitled ‘ECB Banking Supervision’s post-pandemic priorities – the way forward’. In his speech Mr Fernandez-Bollo reflects on some of the challenges and priorities that lie ahead for the banking sector. These include: … Continue Reading

Joint Statement on the EU – U.S. Joint Financial Regulatory Forum

By Simon Lovegrove (UK) on October 6, 2021 Posted in Germany, Italy, Regulation and Compliance, Regulation and compliance, Regulation and compliance, Regulation and compliance, The Netherlands, United Kingdom

On 4 October 2021, there was published the latest joint statement on the EU – U.S. Joint Financial Regulatory Forum (Forum). The joint statement notes that the Forum focussed on six themes: Market developments and current assessment of financial stability risks. Sustainable finance. Multilateral and bilateral engagement in banking and insurance. Regulatory and supervisory cooperation … Continue Reading

OECD reports on climate transition

On 4 October 2021, the Organisation for Economic Co-operation and Development (OECD) published: A report ‘ESG investing and climate transition: Market practices, issues and policy considerations’. The report highlights the main findings from recent OECD research on ESG rating and investing. It offers policy considerations to strengthen ESG practices to foster global interoperability and comparability, … Continue Reading

BRRD ITS for contractual recognition of write down and conversion powers

By Simon Lovegrove (UK) on October 5, 2021 Posted in Banking, Banking, Banking, Banking, Banking, France, Germany, Italy, The Netherlands, United Kingdom

On 4 October 2021, there was published in the Official Journal of the EU (OJ) Commission Implementing Regulation (EU) 2021/1751 laying down implementing technical standards for the application of the Bank Recovery and Resolution Directive with regard to uniform formats and templates for notifications of determination of the impracticability of including contractual recognition of write … Continue Reading

Commission Implementing Decision on third-country equivalence for purposes of treatment of exposures under CRR

By Simon Lovegrove (UK) on October 5, 2021 Posted in Capital Adequacy, Capital adequacy, Capital adequacy, Capital Adequacy, Capital adequacy, France, Germany, Italy, The Netherlands, United Kingdom

On 4 October 2021, there was published in the Official Journal of the EU (OJ) Commission Implementing Decision 2021/1753 on the equivalence of the supervisory and regulatory requirements of certain third countries and territories for the purposes of the treatment of exposures in accordance with the Capital Requirements Regulation (CRR). Article 391 of the CRR, … Continue Reading

ESMA publishes MiFID II/MiFIR review report on algo trading, recommends authorisation of third-country HFT firms

By Anna Carrier (BE) on October 4, 2021 Posted in France, Germany, Italy, Regulation and Compliance, Regulation and compliance, Regulation and compliance, Regulation and Compliance, Regulation and compliance, The Netherlands, United Kingdom

On 28 September 2021, the European Securities and Markets Authority (ESMA) published its final MiFID II/MiFIR review report on algorithmic trading. The report covers a comprehensive range of topics, including high frequency trading (HFT) and high intraday message rates, Direct Electronic Access (DEA), third-country firms, organisational requirements for investment firms and for trading venues, as … Continue Reading

ESMA seeks stakeholder input on shaping advice on retail investor protection

By Matthew Gregory (UK) on October 4, 2021 Posted in France, Germany, Italy, Retail, Retail, Retail, Retail, Retail, The Netherlands, United Kingdom

On 1 October 2021, the European Securities and Markets Authority (ESMA) issued a call for evidence on a number of retail investor protection topics under MiFID II. The call for evidence follows a letter that ESMA received from the European Commission in July this year asking for assistance in the preparation of legislative proposals implementing … Continue Reading

ESMA calls for legislative changes to improve access to and use of credit ratings

By Simon Lovegrove (UK) on October 1, 2021 Posted in Germany, Italy, Regulation and Compliance, Regulation and compliance, Regulation and compliance, Regulation and compliance, The Netherlands, United Kingdom

On 30 September 2021, the European Securities and Markets Authority (ESMA) published an opinion that explains the reasons why users of credit ratings rely on unregulated, fee bearing sources of credit ratings and related information in order to meet their regulatory reporting obligations rather than using the credit ratings disclosed on credit rating agencies (CRAs) … Continue Reading

FSB launches new financial stability surveillance framework

On 30 September 2021, the Financial Stability Board (FSB) published a new Financial Stability Surveillance Framework. The new framework will support the comprehensive, methodical and disciplined review of vulnerabilities, helping to identify and address new and emerging risks to financial stability. The FSB will regularly communicate its view on vulnerabilities through its annual reports. John … Continue Reading

New ESMA Q&As available

By Simon Lovegrove (UK) on October 1, 2021 Posted in Clearing and Settlement, Clearing and settlement, Clearing and settlement, Clearing and Settlement, Clearing and settlement, France, Germany, Italy, The Netherlands, United Kingdom

On 30 September 2021, the European Securities and Markets Authority announced that it had updated its Questions and Answers on the following: EMIR implementation. SFTR data reporting. MiFID II and MiFIR transparency topics.… Continue Reading

Commission adopts Delegated Regulations setting out RTS on prudential requirements under IFR

By Simon Lovegrove (UK) and Jochen Vester (UK) on September 29, 2021 Posted in Capital Adequacy, Capital adequacy, Capital adequacy, Capital Adequacy, Capital adequacy, France, Germany, Italy, The Netherlands, United Kingdom

On 28 September 2021, the European Commission adopted the following Delegated Regulations containing regulatory technical standards (RTS) relating to prudential requirements for investment firms under the Investment Firms Regulation (IFR): Commission Delegated Regulation (EU) of 24.9.2021 supplementing the IFR with regard to RTS specifying the amount of total margin for the calculation of the K-factor … Continue Reading