Italy (and EU regulation)

Commission Delegated Regulation supplementing the CRR with regard to RTS specifying exotic underlyings and the instruments bearing residual risks for the purposes of the calculation of own funds requirements for residual risks

On 16 August 2022, the European Commission published Commission Delegated Regulation of 16.8.2022 supplementing the Capital Requirements Regulation (CRR) with regard to regulatory technical standards (RTS) specifying exotic underlyings and the instruments bearing residual risks for the purposes of the calculation of own funds requirements for residual risks. The final draft RTS specify what an … Continue Reading

Commission Delegated Regulation amending the RTS as regards the 90-day exemption for account access

By Albert Weatherill (UK) on August 16, 2022 Posted in France, Germany, Italy, Payment services, Payment Services, Payment services, Payment services, The Netherlands, United Kingdom

On 16 August 2022, the European Commission published Commission Delegated Regulation (EU) of 3.8.2022 amending the regulatory technical standards (RTS) laid down in Delegated Regulation 2018/389 as regards the 90-day exemption for account access. The final draft RTS introduces into Commission Delegated Regulation 2018/389 a new mandatory exemption from the requirement to apply strong customer … Continue Reading

Commission Delegated regulation specifying the calculation methods of gross jump-to-default amounts for exposure to default risk arising from certain derivative instruments, and specifying the determination of notional amounts of instruments other than the instruments referred to in Article 325w(4) of the CRR

By Jochen Vester (UK) on August 12, 2022 Posted in Capital Adequacy, Capital adequacy, Capital adequacy, Capital Adequacy, Capital adequacy, France, Germany, Italy, The Netherlands, United Kingdom

On 11 August 2022, the European Commission published a Commission Delegated Regulation supplementing the Capital Requirements Regulation (CRR) with regard to regulatory technical standards specifying the calculation methods of gross jump-to-default (JTD) amounts for exposures to debt and equity instruments and for exposures to default risk arising from certain derivative instruments, and specifying the determination … Continue Reading

ESMA MoU with South Africa’s Financial Sector Conduct Authority, Prudential Authority and the South African Reserve Bank

By Simon Lovegrove (UK) on August 11, 2022 Posted in Clearing and Settlement, Clearing and settlement, Clearing and settlement, Clearing and Settlement, Clearing and settlement, France, Germany, Italy, The Netherlands, United Kingdom

On 11 August 2022, the European Securities and Markets Authority (ESMA) published a Memorandum of Understanding (MoU) between itself and South Africa’s Financial Sector Conduct Authority, Prudential Authority and the South African Reserve Bank related to central counterparties (CCPs) established in South Africa. By signing the MoU, the signatories affirm their willingness to cooperate and … Continue Reading

ESMA updates list of third-country CCPs recognised to offer services and activities in the EU

On 11 August 2022, the European Securities and Markets Authority published an updated list of third-country central counterparties recognised to offer services and activities in the EU in accordance with the European Markets Infrastructure Regulation. … Continue Reading

Commission report on the treatment of CCP equity in the write-down and conversion tool under the Regulation on CCP recovery and resolution

By Hannah Meakin (UK) on August 11, 2022 Posted in Clearing and Settlement, Clearing and settlement, Clearing and settlement, Clearing and Settlement, Clearing and settlement, France, Germany, Italy, The Netherlands, United Kingdom

On 10 August 2022, the European Commission published a report to the European Parliament and the Council on the treatment of central counterparty (CCP) equity in the write-down and conversion tool under the Regulation on CCP recovery and resolution (CCP-RRR). Under Article 27(7) of the CCP-RRR, the resolution authority must write down and convert any … Continue Reading

ECB opinion on a proposal for a directive as regards delegation arrangements, liquidity risk management, supervisory reporting, provision of depositary and custody services and loan origination by alternative investment funds

By Simon Lovegrove (UK) on August 10, 2022 Posted in Collective Investment Schemes, Collective investment schemes, Collective investment schemes, Collective Investment Schemes, Collective investment schemes, France, Germany, Italy, The Netherlands, United Kingdom

On 9 August 2022, the European Central Bank (ECB) published an opinion on a proposal for a directive as regards delegation arrangements, liquidity risk management, supervisory reporting, provision of depositary and custody services and loan origination by alternative investment funds. The proposal forms part of a package of legal acts in support of the Capital … Continue Reading

EBA consults on draft RTS on the determination by originator institutions of the exposure value of SES in securitisations

By Jochen Vester (UK) on August 9, 2022 Posted in Capital Adequacy, Capital adequacy, Capital adequacy, Capital Adequacy, Capital adequacy, France, Germany, Italy, The Netherlands, United Kingdom

On 9 August 2022, the European Banking Authority launched a public consultation on its draft regulatory technical standards (RTS) on the determination by originator institutions of the exposure value of synthetic excess spread (SES) in securitisations. The draft RTS have been developed in accordance with Article 248(4) of Capital Requirements Regulation (CRR). The Capital Markets … Continue Reading

CPMI / IOSCO discussion paper on CCP practices to address non default-losses

Introduction On 4 August 2022, the Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) published a discussion paper on central counterparty (CCP) practices to address non default-losses (NDLs). Non default events can threaten a CCP’s viability as a going concern and its ability to continue providing critical services. … Continue Reading

ESMA updates Q&As on the implementation of the CSDR

By Hannah Meakin (UK) on August 4, 2022 Posted in Clearing and Settlement, Clearing and settlement, Clearing and settlement, Clearing and Settlement, Clearing and settlement, France, Germany, Italy, The Netherlands, United Kingdom

On 3 August 2022, the European Securities and Markets Authority (ESMA) updated its Q&As on the implementation of the Central Securities Depositories Regulation (CSDR). The updated Q&As amend settlement discipline question 3 – cash penalties. The question has now been updated to include answers to the following: Article 3(2) of Commission Delegated Regulation 2017/389 provides … Continue Reading

Commission summary report on targeted consultation on the functioning of the ESG ratings market in the EU and on the consideration of ESG factors in credit ratings

By Simon Lovegrove (UK) on August 4, 2022 Posted in ESG, ESG, ESG, ESG, ESG, France, Germany, Italy, The Netherlands, United Kingdom

On 4 August 2022, the European Commission published a report providing an overview of the results of an earlier targeted consultation on ‘ESG ratings and ESG factors in credit ratings’. Among other things the report notes that: The vast majority of respondents declare that they do use ESG ratings and among these, 77% use them … Continue Reading

European Commission publishes final report on disclosure, inducements and suitability rules for retail investors study

By Simon Lovegrove (UK) on August 3, 2022 Posted in France, Germany, Italy, Retail, Retail, Retail, Retail, Retail, The Netherlands, United Kingdom

Introduction On 2 August 2022, the European Commission published a final report which it produced in May concerning the findings from a study that examined disclosure, inducements and suitability rules for EU retail investors. The study feeds into the development of the Retail Investment Strategy announced earlier this year, being one of the actions planned … Continue Reading

ESMA makes new bond liquidity data available and publishes data for the systematic internaliser calculations

By Hannah Meakin (UK) on August 2, 2022 Posted in France, Germany, Italy, Regulation and Compliance, Regulation and compliance, Regulation and compliance, Regulation and Compliance, Regulation and compliance, The Netherlands, United Kingdom

On 1 August 2022, the European Securities and Markets Authority (ESMA) published the new quarterly liquidity assessment for bonds as well as the data for the systemic internaliser (SI) quarterly calculations for equity, equity-like instruments and bonds under MiFID II and MiFIR. Bond quarterly liquidity assessment The ESMA’s liquidity assessment for bonds is based on … Continue Reading

ESMA launches call for Evidence on Pre-Hedging

By Jochen Vester (UK) on July 29, 2022 Posted in Clearing and Settlement, Clearing and settlement, Clearing and settlement, Clearing and Settlement, Clearing and settlement, France, Germany, Italy, The Netherlands, United Kingdom

On 29 July 2022, the European Securities and Markets Authority (ESMA) published a call for evidence on pre-hedging. The aim is to promote discussion among stakeholders and gather further evidence on the practice of pre-hedging that could help ESMA to develop appropriate guidance. The call for evidence illustrated the arguments in favour and against such … Continue Reading

ECB publishes consultation response to the EFRAG’s public consultation on the first set of draft European Sustainability Reporting Standards.

By Daniel Nevzat (UK) on July 29, 2022 Posted in ESG, ESG, ESG, ESG, ESG, France, Germany, Italy, The Netherlands, United Kingdom

On 29 July 2022, the European Central Bank (ECB) published its response to the European Financial Reporting Advisory Group’s (EFRAG) public consultation on the first set of draft European Sustainability Reporting Standards. The response provides the following general remarks: The ECB strongly supports EU efforts to improve sustainability disclosures. The ECB welcomes the progress made … Continue Reading

EBA consults on revised Guidelines on methods for calculating contributions to deposit guarantees schemes

By Simon Lovegrove (UK) on July 29, 2022 Posted in Banking, Banking, Banking, Banking, Banking, France, Germany, Italy, The Netherlands, United Kingdom

On 29 July 2022, the European Banking Authority (EBA) launched a public consultation on its draft revised Guidelines on deposit guarantee schemes (DGS) contributions. The revised Guidelines are aimed at enhancing the proportionality between the risk of a credit institution and its contributions to the DGS, and at streamlining and simplifying the original Guidelines. In … Continue Reading

ECON publishes Draft Report on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) No 600/2014 as regards enhancing market data transparency, removing obstacles to the emergence of a consolidated tape, optimising the trading obligations and prohibiting receiving payments for forwarding client orders

By Hannah Meakin (UK) on July 29, 2022 Posted in France, Germany, Italy, Regulation and Compliance, Regulation and compliance, Regulation and compliance, Regulation and Compliance, Regulation and compliance, The Netherlands, United Kingdom

On 29 July 2022, the European Parliament Committee on Economic and Monetary Affairs (ECON) published a Draft Report on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) No 600/2014 as regards enhancing market data transparency, removing obstacles to the emergence of a consolidated tape, optimising the trading … Continue Reading

EBA publishes Final Report: Guidelines on the criteria for the exemption of investment firms from liquidity requirements in accordance with Article 43(4) of Regulation (EU) 2019/2033

By Jochen Vester (UK) on July 29, 2022 Posted in France, Germany, Italy, Regulation and Compliance, Regulation and compliance, Regulation and compliance, Regulation and Compliance, Regulation and compliance, The Netherlands, United Kingdom

On 29 July 2022, the European Banking Authority (EBA) published its final guidance on the criteria for the exemption of investment firms from liquidity requirements in accordance with Article 43(4) of Regulation (EU) 2019/2033. The guidelines ensure that all competent authorities granting this exemption follow the same harmonised approach, while preserving the IFR general objective … Continue Reading

EBA publishes Consultation Paper on Draft Regulatory Technical Standards on the homogeneity of the underlying exposures in STS securitisation under Articles 20(14), 24(21) and 26b (13) of Regulation (EU) 2017/2402, as amended by Regulation (EU) 2021/557

By Simon Lovegrove (UK) on July 29, 2022 Posted in Banking, Banking, Banking, Banking, Banking, France, Germany, Italy, The Netherlands, United Kingdom

On 28 July 2022, the European Banking Authority (EBA) published a Consultation Paper on Draft Regulatory Technical Standards (RTS) on the homogeneity of the underlying exposures in STS securitisation under Articles 20(14), 24(21) and 26b(13) of Regulation (EU) 2017/2402, as amended by Regulation (EU) 2021/557. These draft RTS will be amending the Commission Delegated Regulation … Continue Reading

EBA releases Consultation Paper: Supervisory handbook on the validation of rating systems under the Internal Ratings Based approach

By Simon Lovegrove (UK) on July 29, 2022 Posted in Banking, Banking, Banking, Banking, Banking, France, Germany, Italy, The Netherlands, United Kingdom

On 28 July 2022, the European Banking Authority (EBA) published a Consultation Paper on its supervisory handbook for the validation of internal ratings based systems. This handbook clarifies the role of the validation function as part of corporate governance, in particular in terms of scope of work and interaction with the credit risk control unit. … Continue Reading

EBA updates webpage on Joint Regulatory Technical Standards on ESG disclosure standards for financial market participants

By Daniel Nevzat (UK) on July 29, 2022 Posted in ESG, ESG, ESG, ESG, ESG, France, Germany, Italy, The Netherlands, United Kingdom

On 28 July 2022, the European Banking Authority (EBA) updated its webpage on Joint Regulatory Technical Standards (RTS) on ESG disclosure standards for financial market participants. The webpage now makes note that it has been adopted and published in the Official Journal.… Continue Reading

ECB publishes Working Paper on the optimal quantity of CBDC in a bank-based economy

By Simon Lovegrove (UK) on July 29, 2022 Posted in Banking, Banking, Banking, Banking, Banking, France, Germany, Italy, The Netherlands, United Kingdom

On 28 July 2022, the European Central Bank (ECB) published a Working Paper on the optimal quantity of CBDC in a bank based economy. The paper provides evidence on the estimated effects of digital euro news on bank valuations and lending and finds that they depend on deposit reliance and design features aimed at calibrating … Continue Reading

ECB publishes Working Paper on voluntary support and ring-fencing in cross-border banks

By Simon Lovegrove (UK) on July 29, 2022 Posted in Banking, Banking, Banking, Banking, Banking, France, Germany, Italy, The Netherlands, United Kingdom

On 28 July 2022, the European Central Bank (ECB) published a Working Paper on voluntary support and ring-fencing in cross-border banks. The paper provides a theoretical contribution to the ring-fencing debate in the context of supervisory intervention in an impaired subsidiary of a cross-border bank (CBB). Amongst other things, the paper addresses the following questions: … Continue Reading

Opinion of the European Central Bank of 1 June 2022 on the Proposal for a Regulation of the European Parliament and of the Council amending Regulation (EU) 600/2014 as regards enhancing market data transparency, removing obstacles to the emergence of a consolidated tape, optimising trading obligations and prohibiting receiving payments for forwarding client orders (CON/2022/19) 2022/C 286/03

By Hannah Meakin (UK) on July 28, 2022 Posted in France, Germany, Italy, Regulation and Compliance, Regulation and compliance, Regulation and compliance, Regulation and Compliance, Regulation and compliance, The Netherlands, United Kingdom

On 27 July 2022, the Official Journal of the European Union (OJ) published an Opinion of the European Central Bank (ECB) of 1 June 2022 on the proposal for a Regulation of the European Parliament and of the Council, amending Regulation (EU) 600/2014 as regards enhancing market data transparency, removing obstacles to the emergence of … Continue Reading