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Topic: Clearing and settlement

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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

ECSDA issues updated CSDR penalties framework

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

FMSB publishes Spotlight Review on examining hybrid working risks in FICC markets

On 30 September 2021, the FICC Markets Standards Board (FMSB) published a Spotlight Review which examines hybrid working risks in the wholesale fixed income, currencies and commodities (FICC) markets. The FMSB is a private sector, market led organisation created as a result of the recommendations in the Fair and Effective Markets Review (FEMR) Final Report … Continue Reading

New ESMA Q&As available

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

BoE papers on derivatives clearing obligation

On 29 September 2021, the Bank of England (BoE) published a policy statement setting out its final policy on the proposal to modify the scope of contracts subject to the derivatives clearing obligation, which was set out in a consultation paper that the BoE published earlier this year (Derivatives clearing obligation – modifications to reflect … Continue Reading

BoE Dear CEO letters – supervisory expectations in relation to material outsourcing to the public cloud

On 29 September 2021, the Bank of England (BoE) published the following: Dear CEO letter to central counterparties (CCPs) setting out supervisory expectations in relation to material outsourcing to the public cloud. The first annex to the Dear CEO letter sets out the BoE’s expectations in relation to material outsourcing arrangements. The second annex sets … Continue Reading

ESMA recommends to Commission to delay buy-in rules

On 24 September 2021, the European Securities and Markets Authority (ESMA) published a letter it had sent to the European Commission regarding the implementation of the Central Securities Depositories Regulation (CSDR), urging it to consider a delay of the mandatory buy-in regime. As the final Commission legislative proposal for the review of the CSDR, possibly … Continue Reading

ESMA guidelines on settlement fails reporting

On 24 September 2021, the European Securities and Markets Authority (ESMA) issued a final report containing guidelines on settlement fails reporting under Article 7 of the Central Securities Depositories Regulation (CSDR). ESMA has produced the guidelines in order to ensure the consistent application of Article 7(1) of the CSDR as supplemented by Articles 14 and … Continue Reading

ROC publishes revised version of the CDE Technical Guidance

On 22 September 2021, the Regulatory Oversight Committee (ROC) of the Global Legal Entity Identifier published a revised version of the CDE Technical Guidance which includes corrections that the ROC considers appropriate to facilitate its jurisdictional implementations. In developing these corrections, the ROC considered the responses to a public consultation that was run between 5 … Continue Reading

BoE approach to the monitoring of third country systems designated under the Settlement Finality Regulations

On 14 September 2021, the Bank of England (BoE) published its approach to monitoring third country systems designated under the UK’s Settlement Finality Regulations (UK SFR). In response to the UK’s withdrawal from the EU, the UK amended its legislation to enable third country central counterparties, central securities depositories and payment systems, which are not … Continue Reading

Delegated Regulation supplementing EMIR specifying the conditions when commercial terms of central clearing are FRANDT

On 8 September 2021, there was published in the Official Journal of the EU Commission Delegated Regulation (EU) 2021/1456 of 2 June 2021 supplementing Regulation (EU) No 648/2012 of the European Parliament and of the Council by specifying the conditions under which the commercial terms for clearing services for over-the-counter derivatives are to be considered … Continue Reading

GFXC releases guidance paper on Last Look, publishes disclosure templates

On 18 August 2021, the Global Foreign Exchange Committee (GFXC) issued a guidance paper on ‘last look’ trading within the Foreign Exchange market. Last look is a practice used in electronic trading where a market participant has a final opportunity to accept or reject a trade request made on its quoted price. The GFXC is … Continue Reading

MoU between the FCA, BoE and SEC regarding certain OTC derivatives entities that operate on a cross border basis

On 6 August 2021, the FCA published a Memorandum of Understanding between itself, the Bank of England and the United States Securities and Exchange Commission regarding consultation, cooperation and the exchange of information in the supervision and oversight of certain over-the-counter derivatives entities that operate on a cross-border basis in the United States and the … Continue Reading

FCA revises direction on application for ROIE status

On 4 August 2021, the FCA updated its webpage concerning its approach to overseas market operators seeking to apply to become a recognised overseas investment exchange (ROIE). The FCA explains that it has published a revised direction regarding the manner in which applications for ROIE status should be made. This replaces the temporary direction put … Continue Reading

CPMI work programme for 2021-22

On 5 August 2021, the Committee on Payments and Market Infrastructures (CPMI) published its work programme for 2021-22. The annual work programme has been publicly released for the first time as part of the CPMI’s commitment to increased transparency. The annual work programme will focus on shaping the future of payments and addressing risks in … Continue Reading

HM Treasury consultation on SMCR for FMIs

On 20 July 2021, HM Treasury issued a consultation document detailing a proposed Senior Managers and Certification Regime (SMCR) for financial market infrastructures (FMIs) supervised by the Bank of England (BoE). In practice, the FMIs are central counterparties, central securities depositories and payment systems recognized under the Banking Act 2009, and specified service providers to … Continue Reading

ESMA third report on CSDR implementation

On 16 July 2021, the European Securities and Markets Authority issued its latest report on the implementation of the Central Securities Depositories Regulation (CSDR). The report looks at the provision of banking-type ancillary services by central securities depositories (CSDs). The report contains suggestions to enhance the authorisation process for CSDs to provide banking-type ancillary services … Continue Reading

GFXC updates FX Global Code, publishes new templates for disclosures and guidance paper on Pre-hedging

On 15 July 2021, the Global Foreign Exchange Committee (GFXC) completed its review of the FX Global Code, updating its principles of good practice in the foreign exchange market in several key areas. The GFXC also published templates for industry participants to use in improving disclosures and assisting with transaction cost analysis. The GFXC is … Continue Reading

ESMA consults on EMIR reporting guidelines

On 13 July 2021, the European Securities and Markets Authority (ESMA) issued a consultation paper on draft guidelines for derivatives reporting under the European Market Infrastructure Regulation (EMIR). When finalised the guidelines will apply to financial and non-financial counterparties to derivatives as defined in Articles 2(8) and 2(9) of EMIR, to trade repositories as defined … Continue Reading

ESMA publishes methodology for assessing third country CCPs systemic importance

On 13 July 2021, the European Securities and Markets Authority (ESMA) published a methodology for assessing whether a third country central counterparty (TC-CCP) or some of its clearing services are of such substantial systemic importance that the TC-CCP should not be recognised to provide certain clearing services or activities in the European Union. The methodology … Continue Reading

ESMA final report – technical advice on simplification and harmonization of fees to TRs under EMIR and SFTR

On 12 July 2021, the European Securities and Markets Authority (ESMA) issued a final report setting out its technical advice to the European Commission regarding the simplification and harmonisation of its fee regulations applicable to trade repositories (TRs) under the European Market Infrastructure Regulation and the Securities Financing Transactions Regulation (SFTR). In particular in section … Continue Reading

ESMA launches public consultations on CCP recovery regime

On 12 July 2021, the European Securities and Markets Authority (ESMA) issued seven public consultation papers intended to gather feedback on how to implement its central counterparty (CCP) recovery mandates. The seven consultation papers contain, among others, proposals for draft regulatory technical standards (RTS) on the methodology for calculation and maintenance of the additional amount … Continue Reading
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