On 1 March 2024, the Financial Conduct Authority (FCA) announced it is seeking feedback alongside the Bank of England (BoE) on draft guidance for reporting under the revised UK EMIR Article 9 reporting requirements. On 24 February 2023, the FCA and BoE jointly published Policy Statement 23/2 (PS23/2) confirming changes to the derivative reporting framework … Continue Reading
On 16 February 2024, the Bank of England (BoE) published a Policy Statement providing feedback on responses to an earlier Consultation Paper on the BoE’s proposed approach to its power to temporarily restrict or prohibit discretionary payments to employees or shareholders of recognised UK central counterparties (CCPs). The BoE’s final Statement of Policy on its … Continue Reading
On 13 February 2024, the Bank for International Settlements’ Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) published a report ‘Streamlining variation margin in centrally cleared markets – examples of effective practices’. In September 2022, the Basel Committee on Banking Supervision, CPMI and IOSCO published a final report … Continue Reading
The Central Securities Depositories Regulation (CSDR) is the EU regulation relating to securities settlement and central securities depositaries (CSDs). It applies to CSDs that are based in the EU and their participants. The CSDR entered into force in September 2014 and many of its requirements were staggered. It standardises the requirements for the settlement of … Continue Reading
On 26 January 2024, the Board of the International Organisation of Securities Commission (IOSCO) published a consultation report on post trade reduction services (PTRRS). In 2015, IOSCO published the Risk Mitigation Standards (the Standards), setting out standards aimed at mitigating risk in the non-centrally cleared over-the-counter (OTC) derivatives markets. At the time the Standards were … Continue Reading
On 17 January 2024, the Basel Committee on Banking Supervision (Basel Committee) and the International Organization of Securities Commissions (IOSCO) published a report on streamlining variation margin processes and the responsiveness of initial margin models in non-centrally cleared markets. The report follows the 2022 report reviewing margining practices and covers two areas that were discussed: … Continue Reading
On 21 December 2023, the Bank of England (BoE) issued a consultation paper on its approach to statutory notice decisions for use of its requirements powers. The BoE has been given a number of new powers, matched by new obligations and accountabilities, in its role as the UK’s regulator for central counterparties (CCPs) and central … Continue Reading
On 20 December 2023, the European Supervisory Authorities (ESAs) issued joint draft regulatory technical standards (RTS) under the European Market Infrastructure Regulation (EMIR) where they are proposing a two year extension to the equity option exemption from bilateral margining. The ESAs have also issued a no-action opinion which includes clarifications on supervisory expectations. The draft … Continue Reading
On 19 December 2023, the European Securities and Markets Authority (ESMA) published a final report on proposed updates to its guidelines on position calculation under EMIR Refit. The guidelines provide clarification regarding the time of calculations, the scope of the data to be used in calculations and the calculation methodologies under the new EMIR Refit … Continue Reading
On 15 December 2023, the European Securities and Markets Authority (ESMA) issued a consultation paper regarding technical advice on the penalty mechanism under the Central Securities Depositories Regulation (CSDR). The consultation paper follows the European Commission’s (Commission) third request to ESMA for technical advice on a possible amendment to Commission Delegated Regulation (EU) 2017/389. ESMA … Continue Reading
On 6 December 2023, the Council of the EU issued a press release stating that it had adopted a mandate to start negotiations with the European Parliament on a review of the European Market Infrastructure Regulation (EMIR) and a directive amending Directives 2009/65/EU, 2013/36/EU and (EU) 2019/2034. The European Commission presented a proposal on 7 … Continue Reading
On 6 December 2023, HM Treasury published the Financial Services and Markets Act 2023 (Resolution of Central Counterparties: Partial Property Transfers and Safeguarding of Protected Arrangements) Regulations 2023 (SI 2023/1316). This statutory instrument relates to the introduction of a new special resolution regime for central counterparties (CCPs) in Schedule 11 of the Financial Services and … Continue Reading
On 5 December 2023, HM Treasury published the Resolution of Central Counterparties (CCPs) (Modified Application of Corporate Law and Consequential Amendments) Regulations 2023 (SI 2023/1313). This statutory instrument relates to the introduction of a new special resolution regime for CCPs in Schedule 11 of the Financial Services and Markets Act 2023 (c. 29) (FSMA 2023). … Continue Reading
On 29 November 2023, the European Commission published a targeted consultation document – Selection of a unique product identifier for public transparency in over-the-counter (OTC) derivatives transactions. The provisional agreement on the reform of the Markets in Financial Instruments Regulation includes reforms to the scope of pre- and post-trade transparency reporting for OTC derivatives, including … Continue Reading
On 28 November 2023, the European Commission published a Delegated Regulation and an Annex which modifies Article 39 and 62 of Commission Delegated Regulation 153/2013 which supplements the European Markets Infrastructure Regulation with regard to regulatory technical standards on requirements for central counterparties (CCPs). Article 39 is amended to extend the duration during which the … Continue Reading
On 27 November 2023, the Council of the EU issued a press release announcing that it had adopted the proposed Regulation amending the Central Securities Depositories Regulation (CSDR) as regards settlement discipline, cross-border provision of services, supervisory cooperation, provision of banking-type ancillary services and requirements for third-country central securities depositories (CSDs) and amending Regulation No … Continue Reading
The Bank of England (BoE) co-operates with the FCA to supervise financial market infrastructure (FMI) and the framework for this cooperation is set out in a memorandum of understanding (MoU). The BoE and FCA must review the MoU annually to confirm whether the intended arrangements are proving effective. On 24 November 2023, the FCA issued … Continue Reading
On 13 November 2023, HM Treasury (HMT) published Statutory Instrument 2023 No.1198: The Central Counterparties (CCPs) (Equivalence) (Singapore) (Monetary Authority of Singapore (MAS)) Regulations 2023, along with an explanatory memorandum. The Regulations have been made to specify that the legal and supervisory arrangements that apply to certain CCPs, authorised by the MAS, Singapore’s central bank … Continue Reading
On 10 November 2023, the European Parliament published the text that it had adopted at first reading of the proposed Regulation amending Regulation (EU) No 909/2014 as regards settlement discipline, cross-border provision of services, supervisory cooperation, provision of banking-type ancillary services and requirements for third-country central securities depositories. The European Parliament instructs its President to … Continue Reading
On 9 November 2023, HM Treasury (HMT) published Statutory Instrument (SI) 2023 No.1190: the Financial Services and Markets Act 2023 (Resolution of Central Counterparties (CCPs): Deferment of Provisions in Resolution Instruments) Regulations 2023, along with an explanatory memorandum. The SI relates to the introduction of a new special resolution regime for CCPs under Schedule 11 … Continue Reading
On 9 November 2023, HM Treasury (HMT) published Statutory Instrument (SI) No.1195: the Financial Services and Markets Act 2023 (Resolution of Central Counterparties (CCPs): Calculation of Maximum Amounts for Cash Calls and Use of Specified Funds) Regulations 2023, along with an explanatory memorandum. The SI sets the maximum amounts of cash that may be specified … Continue Reading
On 30 October 2023, the European Commission published Commission Delegated Regulation (EU) of 26 October 2023, supplementing the CCP Recovery and Resolution Regulation (CCPRRR) with regard to regulatory technical standards specifying the minimum elements to be included in a business reorganisation plan and the criteria to be fulfilled for its approval by the resolution authority. … Continue Reading
On 25 October 2023, the Financial Markets Law Committee (FMLC) published a letter to HM Treasury (HMT) highlighting areas of legal uncertainty relating to the Financial Collateral Arrangements Regulations (FCARs) and asking for them to be addressed. The FMLC notes that the interpretation of certain elements of the FCARs has remained an area of legal … Continue Reading
On 17 October 2023, there was published in the Official Journal of the European Union (OJ) Commission Implementing Decision (EU) 2023/2207 of 13 October 2023 amending Implementing Decision (EU) 2016/2272 on the equivalence of financial markets in Australia in accordance with the European Markets Infrastructure Regulation to take account of recent developments in the financial … Continue Reading