Germany

Public statement on the use of UK data in ESMA databases and performance of MiFID II calculations in case of a no-deal Brexit

On 5 February 2019, the European Securities and Markets Authority (ESMA) issued a statement in relation to the impact on its databases of a no-deal Brexit.  The statement informs stakeholders on ESMA’s approach to all ESMA IT applications and databases in case of a no-deal scenario and focuses in particular on the MiFID II / … Continue Reading

ESMA consultation on liquidity stress test guidance for investment funds

On 5 February 2019, the European Securities and Markets Authority (ESMA) issued a consultation paper on draft guidelines regarding liquidity stress tests of investment funds – applicable to alternative investment funds and Undertakings for the Collective Investment in Transferable Securities (UCITS). The consultation has been produced in response to a recommendation by the European Systemic … Continue Reading

FSB Global Monitoring Report on Non-Bank Financial Intermediation

On 4 February 2019, the Financial Stability Board (FSB) published the Global Monitoring Report in Non-Bank Financial Intermediation 2018. The report sets out the results of the FSB’s most recent annual monitoring exercise that assesses global trends and risks from non-bank financial intermediation. It covers data up to end-2017 from 29 jurisdictions, which together represent … Continue Reading

ESMA updates Q&As on EMIR implementation

On 4 February 2019, the European Securities and Markets Authority (ESMA) published an updated version of its Q&As on EMIR. The updated Q&As modify two questions concerning trade repositories, specifically regarding contracts with no maturity date (trade repositories Q34), and trades terminated before the reporting deadline (trade repositories Q38). A new question 50 is also … Continue Reading

Bank of England and ESMA agree MoUs

On 4 February 2019, the Bank of England announced that it had agreed, with the European Securities and Markets Authority (ESMA), Memoranda of Understanding (MoUs) regarding cooperation and information-sharing arrangements with respect to central counterparties (CCPs) and central securities depositories (CSDs). The MoUs follow the adoption by the European Commission in December 2018 of temporary … Continue Reading

ESMA updates Q&As on MiFIR data reporting

On 4 February 2019, the European Securities and Markets Authority (ESMA) published an updated version of its Q&As on MiFID data reporting. The updated Q&As insert the following: a new question concerning the legal entity identifier asking: “How should operators of trading venue(s) and systematic internaliser(s) populate field 5 (issuer or operator of the trading … Continue Reading

ESMA 2019 regulatory work programme

On 4 February 2019, the European Securities and Markets Authority (ESMA) published its regulatory work programme (RWP) for 2019. The RWP lists all the technical standards and technical advice that ESMA has been mandated to draft over the coming year, and these are set out under the appropriate legislation. Work for the coming year includes: … Continue Reading

European Commission adopts proposals for Council decisions incorporating Directives into EEA Agreement

On 4 February 2019, the European Commission adopted a number of proposals for decisions of the Council of the EU regarding the incorporation of certain financial services Directives into the EEA Agreement. The proposed decisions adopted are: Proposal for a Council decision on the position to be adopted, on behalf of EU, within the EEA … Continue Reading

IOSCO consults on sustainable finance recommendations

On 1 February 2019, the International Organization of Securities Commissions (IOSCO) published a consultation report on sustainable finance in emerging markets and the role of securities regulators (the Consultation). Based on analysis by IOSCO’s Growth and Emerging Markets Committee (GEMC),  the Consultation proposes a set of 11 recommendations that member jurisdictions should consider when issuing … Continue Reading

ESMA opinion and Q&A on disclosure technical standards under the Securitisation Regulation

On 1 February 2019, the European Securities and Markets Authority (ESMA) published an opinion containing a revised set of draft regulatory and implementing technical standards (disclosure RTS/ITS) under the Securitisation Regulation, which concern the details of a securitisation to be published by the originator, sponsor and securitisation special purpose entity (SSPE), as well as the … Continue Reading

ESRB report on interoperability arrangements between CCPs

On 1 February 2019, the European Systemic Risk Board (ESRB) published a report on interoperability arrangements between central counterparties (CCPs). A previous report published by the ESRB in 2016 concluded that, although interoperability arrangements provide clearing members with increased opportunities for netting and lead to a reduction in outstanding gross exposures in the system, they are … Continue Reading

Updated ESMA Q&As on MiFID II and MiFIR market structures topics

On 1 February 2019, the European Securities and Markets Authority (ESMA) updated its Q&As on market structures and transparency issues under MIFID II and MiFIR. The new Q&As provide clarification on the following: Approved Publication Arrangement reports to competent authorities and ESMA; and Identification of high frequency trading techniques.… Continue Reading

ESMA clarifies the reporting and handling of derivative data in case of no-deal Brexit

On 1 February 2019, the European Securities and Markets Authority (ESMA) issued a public statement on how derivatives data reported under EMIR should be handled in the event that the UK leaves the EU without a Withdrawal Agreement (i.e. a hard Brexit scenario). In the event of a hard Brexit, UK counterparties would not be … Continue Reading

Commission adopts Delegated Regulation supplementing EuSEF Regulation

On 1 February 2019, the European Commission adopted a Delegated Regulation supplementing the Regulation on European social entrepreneurship funds (the EuSEF Regulation). The Delegated Regulation: provides for a list of types of conflicts of interest in the context of qualifying social entrepreneurship funds. It covers situations that involve a manager of the qualifying social entrepreneurship … Continue Reading

Commission adopts Delegated Regulation containing RTS under MLD4

On 31 January 2019, the European Commission  adopted a Delegated Regulation supplementing the Fourth Anti-Money Laundering Directive (MLD4) with regard to regulatory technical standards (RTS) for the minimum action and the type of additional measures credit and financial institutions must take to mitigate money laundering and terrorist financing risk in certain third countries. The RTS … Continue Reading

Updated ESMA Q&As on the Transparency Directive

On 31 January 2019, the European Securities and Markets Authority (ESMA) published an updated version of its Q&As on the Transparency Directive. The Q&As inset a new question 26, asking, in the case that the UK withdraws from the EU without a withdrawal agreement, under the Transparency Directive which obligations does an issuer which currently … Continue Reading

Updated ESMA Q&As on Prospectuses

On 31 January 2019, the European Securities and Markets Authority (ESMA) published the 29th updated version of its Q&As on Prospectuses. Two new Q&As have been inserted at Questions 103 and 104: Question 103 concerns the choice of Prospectus Directive home Member State for third country issuers in the event that the UK withdraws from … Continue Reading

Updated ESMA MiFID II Q&As on MiFID II and MiFIR transparency topics

On 31 January 2019, the European Securities and Markets Authority (ESMA) published an updated version of its Q&As on MiFID II and MiFIR transparency topics. The updated Q&As modifies ESMA’s response to question 1 of its section on the systematic internaliser regime. The question asks: “By when will ESMA publish information about the total number … Continue Reading

Further ESMA restriction on CFDs published in OJ

On 31 January 2019, there was published in the Official Journal of the EU (OJ) the European Securities and Markets Authority (ESMA) decision of 23 January 2019 renewing the temporary restriction on the marketing, distribution or sale of contracts for differences (CFDs) to retail clients. This decision extends for three months, from 1 February 2019, … Continue Reading

ESMA statement EMIR Refit implementation issues

On 31 January 2019, the European Securities and Markets Authority (ESMA) published a statement on EMIR implementation considerations regarding the clearing and trading obligation for small financial counterparties and the backloading requirement with respect to the reporting obligation. Clearing and trading obligation for small financial counterparties Under EMIR, the clearing obligation start date for counterparties … Continue Reading

ESMA updates Q&As on CSDR

On 30 January 2019, ESMA published an updated version of Q&As on the Central Securities Depositories Regulation (CSDR). Two new Q&As have been inserted under Part III of the Q&As (settlement discipline). The new Q&As concern the calculation of cash penalties, and the scope of cash penalties.  … Continue Reading

ESMA updates Q&As on BMR

On 30 January 2019, ESMA published an updated version of its Q&As on the Benchmarks Regulation (BMR). The updated Q&A includes a new Q&A at 4.5, on the scope of application of the Commission Delegated Regulations adopted under the BMR. The question asks if the scope of application of the Commission Delegated Regulations adopted pursuant … Continue Reading

Updated ECSDA draft CSDR settlement fail penalties framework

On 29 January 2019, the European Central Securities Depositories Association (ECSDA) published an updated version of its draft Central Securities Depositories Regulation (CSDR) penalties framework. The first draft framework was published for consultation in July 2018, and the updated draft reflects comments received during the public consultation. The ECSDA CSDR Penalties Framework is the effort … Continue Reading

Council of EU Decision incorporating CSDR into EEA Agreement published in OJ

On 29 January 2019, there was published in the Official Journal of the EU (OJ), Council Decision (EU) 2019/134 of 21 January 2019 on the position to be adopted, on behalf of the European Union, within the EEA Joint Committee, concerning the amendment of Annex IX (Financial Services) to the EEA Agreement. The decision states … Continue Reading
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