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Topic: Clearing and settlement

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ESMA highlights need for increased efforts on EMIR and SFTR data quality

On 15 April 2021, the European Securities and Markets Authority (ESMA) published its final report on the European Markets Infrastructure Regulation (EMIR) and Securities Financing Transactions Regulation (SFTR) data quality. The report is the first review of data quality since the introduction of the EMIR and SFTR reporting regimes. It also reviews the quality of … Continue Reading

Commission report on possible exemption of post-trade risk reduction services from clearing under EMIR

On 12 April 2021, the European Commission published its report to the European Parliament (EP) and the Council on whether trades that directly result from post-trade risk reduction services (PTRR services) should be exempted from the clearing obligation for over-the-counter (OTC) derivatives under the European Markets Infrastructure Regulation (EMIR). The statutory basis of the report … Continue Reading

Commission Implementing Decision on equivalence of US DCMs under EMIR

On 12 April 2021, there was published in the Official Journal EU Commission Implementing Decision (EU) 2021/583 of 9 April 2021 amending Implementing Decision (EU) 2016/1073 on the equivalence of designated contract markets in the United States of America (USA) in accordance with the European Markets Infrastructure Regulation (EMIR). The EU Commission Implementing Decision amends … Continue Reading

Global Securities Financing Data Collection and Aggregation: FAQs

On 12 April 2021, the Financial Stability Board (FSB) issued FAQs to promote a common approach on the national implementation of the SFT Data Standards. In November 2015 the FSB developed the data standards and processes for collecting and aggregating global data on securities financing transactions (SFTs) (the SFT Data Standards). These built on the … Continue Reading

GFXC publishes request for feedback on proposed changes to the Code and draft disclosure templates

On 8 April 2021, the Global Foreign Exchange Committee (GFXC) announced that as its review of the FX Global Code was nearing completion it was issuing a request for feedback on proposed changes to the Code and draft disclosure templates. The GFXC’s request for feedback covers proposals for updating the Code’s guidance in the following … Continue Reading

ESMA annual peer review of EU CCP supervision

On 8 April 2021, the European Securities and Markets Authority (ESMA) issued an annual peer review report on the supervision of EU central counterparties (CCPs) by Member State national competent authorities (NCAs). The peer review measured the effectiveness of NCA supervisory practices in assessing CCP compliance with the European Markets Infrastructure Regulation (EMIR) requirements on … Continue Reading

ESMA publishes guidelines on periodic information for trade repositories

On 6 April 2021, the European Securities and Markets Authority (ESMA) published its final report and guidelines on reporting periodic information and material changes by trade repositories (TRs) supervised under the European Markets Infrastructure Regulation (EMIR) and the Securities Financing Transaction Regulation (SFTR). The guidelines set out the information that should be submitted by TRs … Continue Reading

ESMA updates CSDR Q&As

On 31 March 2021, the European Securities and Markets Authority updated its Q&As on the Central Securities Depositories Regulation (CSDR). The latest Q&As on the CSDR contain answers that relate to: The provision of CSD services in other Member States: (i) the first Q&A further clarifies that Article 23 of CSDR applies to all types … Continue Reading

ESMA updates EMIR Q&As

On 31 March 2021, the European Securities and Markets Authority (ESMA) updated its Q&As on the European Markets Infrastructure Regulation (EMIR). ESMA has updated Q&A 51 dealing with trade repositories by clarifying two aspects related to intragroup transactions (IGT) reporting exemption: Reporting of details of derivatives when the IGT reporting exemption ceases to be valid. … Continue Reading

SRB issues new guidance on bail-in for international debt securities

On 30 March 2021, the Single Resolution Board (SRB) issued a document describing elements that banks should consider for the operationalization of the bail-in in respect of international bearer debt securities issued by and safe kept in the international central securities depositories. The document should be read in conjunction with previously published guidance on bail-in … Continue Reading

Commission Delegated Regulation regarding the annual fees charged by ESMA to trade repositories

On 24 March 2021, the European Commission adopted a Delegated Regulation amending Delegated Regulations (EU) No 1003/2013 and (EU) 2019/360 as regards the annual supervisory fees charged by the European Securities and Markets Authority to trade repositories for 2021. Article 1 of the Delegated Regulation establishes the annual supervisory fee for 2021 to be paid … Continue Reading

ESMA consults on simplified supervisory fees for trade repositories

On 24 March 2021, the European Securities and Markets Authority (ESMA) issued a consultation on the simplification of supervisory fees for trade repositories under the European Market Infrastructure Regulation and the Securities Financing Transaction Regulation. The deadline for responses to the consultation is 24 April 2021. ESMA will consider the responses and aims to publish … Continue Reading

Commission consults on Delegated Regulation under EMIR extending clearing obligation exemption for pension scheme arrangements for a further year

On 16 March 2021, the European Commission issued a consultation on a draft Delegated Regulation extending for a year the temporary exemption from the central clearing obligation for pension scheme arrangements (PSAs). The European Market Infrastructure Regulation (EMIR) provides for a temporary exemption from the clearing obligation for PSAs meeting certain criteria. This transitional period … Continue Reading

Commission consults on draft Delegated Regulation supplementing EMIR specifying the conditions when commercial terms of central clearing are FRANDT

On 10 March 2021, the European Commission published for consultation a draft Delegated Regulation supplementing the European Market Infrastructure Regulation (EMIR) by specifying the conditions under which the commercial terms for clearing services for over-the-counter (OTC) derivatives are considered to be fair, reasonable, non-discriminatory and transparent (FRANDT). The objective of the draft delegated act is … Continue Reading

Commission roadmap on CSDR

On 8 March 2021, the European Commission issued a roadmap seeking views on how central securities depositories (CSDs) are working. In particular, the Commission is seeking views on How CSDs are able to operate in different countries across the EU. How requests to use their services are handled. Whether there are other substantive barriers to … Continue Reading

The Recognised Auction Platforms (Amendment and Miscellaneous Provisions) Regulations 2021

On 8 March 2021, there was published a draft of The Recognised Auction Platforms (Amendment and Miscellaneous Provisions) Regulations 2021 together with a revised draft explanatory memorandum. The draft statutory instrument (SI) is being made as part of the legislative effort to establish a UK Emissions Trading Scheme (ETS) and accompanying emission allowance market. The … Continue Reading

PRA and FCA consult on bilateral margin requirements for uncleared derivatives

On 9 March 2021, the PRA and FCA issued a joint consultation paper setting out proposals to establish or extend exemptions for some products subject to bilateral margining requirements, and to align implementation phases and thresholds to the Basel Committee on Banking Supervision and the International Organization of Securities Commissions standards. If implemented the proposals … Continue Reading

FCA publishes equity transparency results

On 9 March 2021, the FCA published the annual transparency calculations for UK equity and equity-like financial instruments which take effect on 1 April 2021. The calculations include the: Liquidity assessment. Determination of the most relevant market in terms of liquidity (MRM). Determination of the average daily turnover (ADT) relevant for the determination of the … Continue Reading

HM Treasury consultation – Expanded resolution regime for CCPs

On 24 February 2021, HM Treasury issued a consultation document setting out the Government’s proposals to expand the resolution regime for central counterparties (CCPs). Amendments to the Banking Act 2009 extended the UK’s resolution regime for banks to include CCPs (although the regime takes a different approach to a CCP resolution in comparison to a … Continue Reading

ESMA guidelines to harmonise CCP supervisory reviews and evaluation under EMIR

On 24 February 2021, the European Securities and Markets Authority (ESMA) issued a final report on guidelines designed to assist Member State competent authorities in the application of the European Market Infrastructure Regulation provisions that deal with the review and evaluation of central counterparties. The guidelines will be translated in the official EU languages and … Continue Reading

ESMA board of supervisors – decision on delegation to the ESMA Chair of the adoption of non-controversial opinions on position limits

On 27 January 2021, the European Securities and Markets Authority (ESMA) issued a decision from its board of supervisors concerning the delegation to the chair of non-controversial opinions on position limits. The board of supervisors has delegated to the chair of ESMA the task to: Assess the compatibility of position limits with the objectives of … Continue Reading

Commission Delegated Regulation amending Delegated Regulation (EU) 2016/2251 as regards to the timing of when certain risk management procedures will start to apply for the purpose of the exchange of collateral

On 17 February 2021, there was published in the Official Journal of the EU (OJ) Commission Delegated Regulation (EU) 2021/236 of 21 December 2020 amending technical standards laid down in Delegated Regulation (EU) 2016/2251 as regards to the timing of when certain risk management procedures will start to apply for the purpose of the exchange … Continue Reading

Commission Delegated Regulation (EU) 2021/237 of 21 December 2020 amending RTS laid down in Delegated Regulations (EU) 2015/2205, (EU) 2016/592 and (EU) 2016/1178 as regards the date at which the clearing obligation takes effect for certain types of contracts

On 17 February 2021, there was published in the Official Journal of the EU (OJ) Commission Delegated Regulation (EU) 2021/237 of 21 December 2020 amending regulatory technical standards (RTS) laid down in Delegated Regulations (EU) 2015/2205, (EU) 2016/592 and (EU) 2016/1178 as regards the date at which the clearing obligation takes effect for certain types … Continue Reading
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