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Topic: Clearing and settlement

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ESMA consults on clearing solutions for pension scheme arrangements under EMIR

On 2 April 2020, the European Securities and Markets Authority (ESMA) issued a consultation paper covering a range of issues regarding potential central clearing solutions for pension scheme arrangements (PSAs) under the European Market Infrastructure Regulation (EMIR). The consultation paper is based on ESMA’s first report to the European Commission documenting the progress made to … Continue Reading

ESMA publishes advice on fines and penalties for third country CCPs

On 31 March 2020, the European Securities and Markets Authority (ESMA) published its final technical advice to the European Commission on procedural rules for imposing fines and penalties on third country central counterparties and alignment of those for trade repositories and credit rating agencies. ESMA’s final technical advice covers: the right to be heard by … Continue Reading

ESMA final draft RTS for CCP colleges under EMIR 2.2

On 30 March 2020, the European Securities and Markets Authority (ESMA) published its final report containing draft amendments to the regulatory technical standards (RTS) incorporated in Commission Delegated Regulation (EU) No 876/2013 on colleges for central counterparties (the Delegated Regulation). The Delegated Regulation has been developed by ESMA and adopted by the European Commission in … Continue Reading

ESMA consults on post-trade risk reduction services under the EMIR Refit Regulation

On 26 March 2020, the European Securities and Markets Authority (ESMA) launched a public consultation on post trade risk reduction services (PTRR) under the European Market Infrastructure Regulation (EMIR). ESMA is mandated to provide a final report to the European Commission, in cooperation with the European Systemic Risk Board, on whether any trades that directly … Continue Reading

ESMA consults on draft technical standards relating to trade repositories under EMIR Refit Regulation

On 26 March 2020, the European Securities and Markets Authority (ESMA) launched a consultation paper on draft Regulatory and Implementing Technical Standards (RTS and ITS) under Regulation (EU) 2019/834 (EMIR REFIT). The ESMA consultation paper covers the technical standards on reporting requirements, procedures to reconcile and validate the data and access by relevant authorities under … Continue Reading

Delegated Regulation amending RTS on risk mitigation techniques on uncleared OTC derivatives under EMIR in context of STS securitisations published in OJ

On 27 March 2020, there was published in the Official Journal of the EU Commission Delegated Regulation (EU) 2020/448 amending Commission Delegated Regulation (EU) 2016/2251, which contains regulatory technical standards (RTS) supplementing the European Market Infrastructure Regulation on risk mitigation techniques for over-the-counter derivative contracts, in connection with certain simple, transparent and standardised securitisations for … Continue Reading

Delegated Regulation with RTS specifying criteria for arrangements to mitigate CCP credit risk associated with covered bonds and securitisations under EMIR published in OJ

On 27 March 2020, there was published in the Official Journal of the EU Commission Delegated Regulation (EU) 2020/447 supplementing the European Market Infrastructure Regulation with regard to regulatory technical standards on the specification of criteria for establishing the arrangements to adequately mitigate counterparty credit risk associated with covered bonds and securitisations and amending Delegated … Continue Reading

GFXC statement on FX market conditions

On 26 March 2020, the Global Foreign Exchange Committee (GFXC) issued a statement on foreign exchange (FX) market conditions. The statement explains that given the intense volatility seen in global financial markets, FX market participants may execute larger than usual FX volumes during end-of-month benchmark fixings. In addition, FX market participants may face more operational … Continue Reading

ESMA delays SFTR phase 1 reporting and trade repository registration obligations

On 19 March 2020, the European Securities and Markets Authority (ESMA) issued a public statement regarding the postponement of the reporting obligations related to securities financing transactions (SFTs) under both the Securities Financing Transactions Regulation (SFTR) and the Markets in Financial Instruments Regulation (MiFIR). ESMA understands that the SFT reporting implementation is now heavily impacted … Continue Reading

EMIR Refit: FCs Reporting on Behalf of Both Itself and NFC- Clients: Operational Considerations

On 13 March 2020, the ISDA published a document that captures some of the operational considerations and potential steps financial counterparties and non-financial counterparties may need to take in order to adhere to the EMIR Refit requirement – as of 18 June 2020, financial counterparties will be legally liable for the timely and accurate reporting … Continue Reading

ICMA FAQs on CSDR mandatory buy-ins and SFTs

On 5 March 2020, the ICMA published FAQs on Central Securities Depositories Regulation (CSDR) mandatory buy-ins and securities financing transactions (SFTs). The FAQs are intended to outline considerations and, where possible, to provide clarity with respect to the application of CSDR buy-ins in the case of repos and other SFTs. The FAQs will be updated … Continue Reading

Stepping up coordination on risks in central clearing

On 26 February 2020, the European Central Bank (ECB) published the introductory remarks by Fabio Panetta (ECB Executive Board Member) at the Second Joint Bundesbank/ECB/Federal Reserve Bank of Chicago Conference on CCP Risk Management. Key points in the speech include: given the significant use of the euro by globally active central counterparties (CCPs), robust arrangements … Continue Reading

ESMA updates the CSDR Q&As

On 17 February 2020, the European Securities and Markets Authority (ESMA) updated its Q&As regarding the implementation of the Central Securities Depositories Regulation (CSDR). Additional Q&As have been added in order to clarify the implementation of the settlement discipline regime, as follows: the costs of the penalty mechanism that are charged to participants by a … Continue Reading

FCA updated webpage on using Connect to submit EMIR notifications and applications

On 6 February 2020, the FCA updated its webpage on using the FCA Connect system to submit notifications and applications under the European Markets Infrastructure Regulation (EMIR). The FCA reminds firms that the legacy EMIR web portal will be decommissioned on 31 March 2020. All counterparties must register on the FCA Connect system to submit … Continue Reading

ESMA publishes the final report on MiFIR alignments following the introduction of EMIR Refit

On 7 February 2020, the European Securities and Markets Authority (ESMA) published a final report suggesting amendments to the trading obligation under the Markets in Financial Instruments Regulation (MiFIR) following the introduction of EMIR Refit. The European Market Infrastructure Regulation (EMIR) has been amended by EMIR Refit. The changes introduced by EMIR Refit concern inter-alia … Continue Reading

ESMA final report on postponed entry into force of CSDR RTS on Settlement Discipline

On 4 February 2020, the European Securities and Markets Authority (ESMA) published its final report on draft regulatory technical standards (RTS) on postponing the date of entry into force of Commission Delegated Regulation EU 2018/1229 (the RTS on settlement discipline) to 1 February 2021. The current date of entry into force of the RTS on … Continue Reading

ESMA consults on the use of no data options in securitisation reporting

On 17 January 2020, the European Securities and Markets Authority (ESMA) published a consultation paper on guidelines on securitisation repository data completeness and consistency thresholds. Article 10(7) of the Securitisation Regulation requires ESMA to define regulatory technical standards (RTS) on securitisation repository procedures to “verify the completeness and consistency of the information” that they receive. … Continue Reading

ISDA guide to the cross-border application of US, EU and Japan margin rules for non-cleared derivatives

On 6 January 2020, the International Swaps and Derivatives Association (ISDA) published a guide intended to provide a general overview of the cross-border application of certain margin rules for non-cleared derivatives. Given that a significant number of counterparties will fall within the scope of initial margin requirements for non-cleared derivatives in 2020 and 2021, the … Continue Reading

ESMA report on CCPs’ membership criteria and due diligence

On 7 January 2020, the European Securities and Markets Authority (ESMA) published a report on a survey it conducted into membership arrangements and due diligence by central counterparties (CCPs) towards their clearing members. The report is aimed at Member State national competent authorities, CCPs, individuals applying as a clearing member and non-financial counterparties applying or … Continue Reading

ESMA final report and guidelines on SFTR reporting

On 6 January 2020, the European Securities and Markets Authority (ESMA) published papers relating to the Securities Financing Transactions Regulation (SFTR) Final report on guidelines on reporting under Articles 4 and 12 of the SFTR. The final report provides a detailed assessment of the feedback received to ESMA’s consultation paper published in May 2019, as … Continue Reading

Commission Delegated Regulation amending RTS on risk mitigation techniques on uncleared OTC derivatives under EMIR in context of STS securitisations

On 18 December 2019, the Council of the EU published a final draft of the Commission Delegated Regulation amending Delegated Regulation (EU) 2016/2251 as regards the specification of the treatment of over-the-counter (OTC) derivatives in connection with certain simple, transparent and standardised securitisations for hedging purposes. Article 11 of the European Market Infrastructure Regulation  (EMIR) … Continue Reading

Commission adopts Delegated Regulation under EMIR with RTS specifying criteria for arrangements to mitigate CCP credit risk associated with covered bonds and securitisations

On 16 December 2019, the European Commission adopted a Commission Delegated Regulation supplementing the European Markets Infrastructure Regulation with regard to regulatory technical standards on the specification of criteria for establishing the arrangements to adequately mitigate counterparty credit risk associated with covered bonds and securitisations and amending Delegated Regulations (EU) 2015/2205 and (EU) 2016/1178. In … Continue Reading
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