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Topic: Clearing and Settlement

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ESMA paper – Methodology for Mandatory Peer Reviews in relation to CCPs’ authorisation and supervision under EMIR

On 5 January 2022, the European Securities and Markets Authority (ESMA) issued a paper ‘Methodology for Mandatory Peer Reviews in relation to CCPs’ authorisation and supervision under EMIR’. The European Markets Infrastructure Regulation (EMIR), as amended by European Regulation No 2019/2099 (EMIR 2.2) requires ESMA to undertake, at least annually, a peer review analysis of … Continue Reading

ESMA guidelines on settlement fails

On 8 December 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). The guidelines apply to Member State competent authorities designated under Article 11 of CSDR and to central securities depositories (CSDs) as defined in Article … Continue Reading

FSB publishes implementation progress of OTC derivatives market reforms in 2021

On 3 December 2021, the Financial Stability Board (FSB) published a report regarding the implementation progress of over-the-counter (OTC) derivatives market reforms in 2021. The report tracks the international progress in implementing G20 reforms to global OTC derivatives markets following the 2008 global financial crisis. The following progress has been made since the previous annual … Continue Reading

ESMA announces upcoming publication aimed at CSDs

On 1 December 2021, the European Securities and Markets Authority (ESMA), announced that it will begin publishing information on trading venues with the highest turnover for bonds. This information is needed by Central Securities Depositories (CSDs) to apply cash penalties under the CSD Regulation. ESMA aims to publish the first data by 1 February 2022 … Continue Reading

IOSCO and CPMI publish a discussion paper on client clearing: access and portability

On 29 November 2021, the Committee on Payments and Market Infrastructures (CPMI) and the Board of the International Organization of Securities Commissions (IOSCO) published a discussion paper on client clearing. The discussion paper considers issues concerning access to central counterparties (CCPs) and effective porting practices. The discussion paper does not intend to provide guidance on … Continue Reading

ESMA seeks input on EMIR clearing threshold framework

On 22 November 2021, the European Securities and Markets Authority (ESMA) issued a document on EMIR clearing thresholds. EMIR Refit introduces a mandate for ESMA to periodically review the clearing thresholds and update them where necessary, in order to ensure that the thresholds remain appropriate (e.g., to take account of any material changes in financial … Continue Reading

ESMA final report on technical standards for commodity derivatives

On 22 November 2021, the European Securities and Markets Authority (ESMA) published its final report, ‘Technical standards for commodity derivatives’. Under the MiFID II Recovery Package, position limits will only continue to apply to agricultural commodity derivatives and to critical or significant commodity derivatives defined in Level 1 as commodity derivatives with a net open … Continue Reading

ESMA consults on CCP investment practices for highly liquid financial instruments

On 18 November 2021, the European Securities and Markets Authority (ESMA) issued a consultation paper on whether the list of financial instruments that are considered highly liquid with minimal market and credit risk, in accordance with Article 47 of the European Market Infrastructure Regulation (EMIR), could be extended to include one or more money market … Continue Reading

ESMA public consultations on CCP Resolution Regime

On 18 November 2021, the European Securities and Markets Authority (ESMA) issued six consultation papers containing draft regulatory technical standards (RTS) on: Resolution colleges. The valuation of central counterparties’ (CCPs) assets and liabilities in resolution. The safeguards for clients and indirect clients. The content of resolution plans. The consultation papers also contain draft guidelines on: … Continue Reading

ESMA proposes changes to the scope of the clearing and derivative trading obligations for benchmark transitions

On 18 November 2021, the European Securities and Markets Authority (ESMA) published a final report on draft regulatory technical standards (RTS) that amend the RTS on the clearing obligation and on the derivative trading obligation that ESMA has developed under Article 5(2) of the European Market Infrastructure Regulation and under Article 32 of the Markets … Continue Reading

Commissioner McGuinness announces proposed way forward for central clearing

On 10 November 2021, the European Commission published a statement by the Commissioner for Financial Services, Financial Stability and Capital Markets Union, Mairead McGuinness. In her statement Commissioner McGuinness states that the Commission will propose an extension of the equivalence decision for UK CCPs in early 2022. However, Commissioner McGuinness also adds that this extension … Continue Reading

The Bank of England’s approach to tiering incoming CCPs

On 8 November 2021, the Bank of England (BoE) issued a Consultation Paper and a draft Statement of Policy on its approach to ‘tiering’ non-UK central counterparties (CCPs) based on the level of systemic risk they could pose to UK financial stability. The consultation closes on 25 February 2022. Under the BoE’s tiering proposals: Incoming … Continue Reading

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

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

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

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

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

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
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