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Topic: Clearing and settlement

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ESMA highlights further aspects to consider in the finalisation of the framework for third-country CCPs

On 9 July 2020, the European Securities and Markets Authority (ESMA) published a letter it sent to the European Commission (Commission) as a contribution to the Commission consultation on the delegated acts on tiering, comparable compliance and fees related to third-country central counterparties (TC-CCPs) under the revised European Market Infrastructure Regulation (EMIR 2.2).   ESMA … Continue Reading

AFME: CSDR settlement discipline penalties – market practice for bilateral claims

On 9 July 2020, the Association for Financial Markets in Europe (AFME) issued a document intended to provide guidelines for its members to handle bilateral claims between trading counterparties, related to penalties applied under the CSDR on failed instructions. The document has been created collaboratively by AFME members and is subject to change. The AFME … Continue Reading

EACH updates CSDR settlement discipline framework

On 9 July 2020, the European Association of Clearing Houses (EACH) published an updated version of its CSDR settlement discipline framework. The objective of the framework is to provide the European Securities and Markets Authority, relevant authorities and market participants with details of EACH’s implementation of the CSDR settlement discipline provisions that affect central counterparties … Continue Reading

ESMA updates CSDR Q&As

On 8 July 2020, the European Securities and Markets Authority updated its Q&As on the Regulation on improving securities settlement in the EU and on central securities depositories. Part III of the Q&As dealing with settlement discipline have been updated with the addition of a new item in Q&A 7 dealing with buy-in timeframes. The … Continue Reading

ESMA updates EMIR Q&As

On 8 July 2020, the European Securities and Markets Authority (ESMA) updated its Q&As on the European Market Infrastructure Regulation (EMIR). ESMA has updated Trade Repository Q&A 11(b) clarifying that the counterparties should follow their local time and the relevant calendar of their Member State to specify the “working day” in the context of determining … Continue Reading

Notice of information on postponement of entry into application of MiFIR open access provisions with regard to exchange-traded derivatives

On 3 July 2020, there was published in the Official Journal of the EU (OJ) a Notice of information on postponement of entry into application of MiFIR open access provisions with regard to exchange-traded derivatives. Article 54(2) of MiFIR provides for a transitional period during which Articles 35 or 36 of MiFIR do not apply … Continue Reading

ESRB opinion on ESMA report on post trade risk reduction services with regards to the clearing obligation

On 25 June 2020, the European Systemic Risk Board (ESRB) published an opinion on the earlier European Securities and Markets Authority’s report on post trade risk reduction services with regards to the clearing obligation. The ESRB opinion concludes that while the use of post trade reduction services in non-centrally cleared over-the-counter markets can help to … Continue Reading

ESRB opinion on ESMA report on central clearing solutions for pension scheme arrangements

On 25 June 2020, the European Systemic Risk Board (ESRB) published an opinion on the earlier European Securities and Markets Authority’s (ESMA) report on central clearing solutions for pension scheme arrangements (PSAs). The ESRB opinion concludes that the best way to remove obstacles for PSAs is to promote indirect clearing. The issues faced by PSAs, … Continue Reading

CPMI/IOSCO report – Central counterparty default management auctions

On 25 June 2020, the Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) published a report ‘Central counterparty default management auctions – Issues for consideration’. The purpose of the report is to provide a description of the issues that a central counterparty (CCP) should consider when planning and … Continue Reading

Clearing houses: Council Presidency and European Parliament reach political agreement on recovery and resolution

On 23 June 2020, the European Council issued a press release stating that its Presidency and the European Parliament had reached political agreement on a common set of rules for central counterparty (CCP) recovery and resolution. The main objectives of the reforms are: To reduce the probability of CCP failure by introducing effective incentives for … Continue Reading

Draft delegated act regarding the systemic importance of third country central counterparties

On 11 June 2020, the European Commission published for consultation a Delegated Regulation supplementing the European Market Infrastructure Regulation (EMIR) with regard to the criteria that the European Securities and Markets Authority (ESMA) should take into account to determine whether a central counterparty (CCP) established in a third country is systemically important or likely to … Continue Reading

Draft delegated act – fees to be charged to third-country CCPs

On 11 June 2020, the European Commission published for consultation a draft Delegated Regulation supplementing the European Market Infrastructure Regulation (EMIR) with regard to fees charged by the European Securities and Markets Authority (ESMA) to central counterparties (CCPs) established in third countries. Article 25d of EMIR provides that ESMA should charge fees to third country … Continue Reading

WFE industry guidance on non-default losses

On 11 June 2020, the World Federation of Exchanges (WFE) issued industry guidance which addresses the treatment of non-default losses. The WFE chair notes that non-default losses may not be the main risk faced by central counterparties (CCPs) but it is still important to have a structured approach to dealing with them. In this way … Continue Reading

ESMA public statement on MiFIR open access provisions for ETDs

On 11 June 2020, the European Securities and Markets Authority (ESMA) issued a public statement to clarify the application of the MiFIR open access provisions for trading venues and central counterparties (CCPs) in light of the recent adverse developments related to COVID-19. ESMA has issued this public statement to inform the market that Member State … Continue Reading

Draft delegated act – assessing third country CCPs’ requests for comparable compliance

On 11 June 2020, the European Commission published for consultation a draft Delegated Regulation supplementing the European Market Infrastructure Regulation (EMIR) with regard to the minimum elements to be assessed by the European Securities and Markets Authority (ESMA) when assessing third-country central counterparties’ (CCPs) requests for comparable compliance and the modalities and conditions for that … Continue Reading

Commission report assessing the application and the scope of the AIFMD

On 10 June 2020, the European Commission published a report assessing the application and scope of the Alternative Investment Fund Managers Directive (AIFMD). The report is prepared in accordance with Article 69 of the AIFMD. The Commission is required to review the application and the scope of the AIFMD with an emphasis on the experience … Continue Reading

ISDA/EBF/FIA: Letter to the Commission and ESMA: EMIR – Time-limited derogation under the Clearing Regulatory Technical Standards for intragroup transactions

On 2 June 2020, ISDA, the European Banking Federation and FIA wrote to the European Commission (EC) and the European Securities and Markets Authority asking the EC both to expedite equivalence decisions relating to EMIR Article 13 and to extend a derogation from the clearing obligation for cross-border intragroup transactions by a further three years … Continue Reading

ESMA publishes final report on FRANDT commercial terms for clearing services

On 2 June 2020, the European Securities and Markets Authority (ESMA) published a final report with technical advice to the European Commission on the fair, reasonable, non-discriminatory and transparent (FRANDT) commercial terms for the provision of clearing services. As part of a broader effort to facilitate access to clearing, the EMIR review (Refit), introduced the … Continue Reading

ESMA updates EMIR Q&As

On 29 May 2020, the European Securities and Markets Authority (ESMA) updated its Q&As on the European Market Infrastructure Regulation (EMIR). ESMA has added a new Trade Repository (TR) Q&A 54 providing clarifications on reporting of over-the-counter derivatives by a financial counterparty (FC) on behalf of a non-financial counterparty (NFC) below the clearing threshold (NFC-) … Continue Reading

EMIR Refit reporting: New documentation requirements, COVID-19 and implementation challenges

 While the majority of the new requirements under the EMIR Refit applied upon the regulation entering into force, other requirements are phased in, such as the changes in relation to the current EMIR reporting regime. The new reporting requirements will apply in less than a month’s time, from June 18, 2020 onwards. We have published … Continue Reading

Commission Delegated Regulation postponing the entry into force of CSDR RTS on settlement discipline

On 4 February 2020, we blogged that the European Securities and Markets Authority had published a final report on draft regulatory technical standards (RTS) on postponing the date of entry into force of Commission Delegated Regulation EU 2018/1229 (the RTS on settlement discipline) to 1 February 2021. Annex IV to the final report contained a … Continue Reading

FSB consults on guidance on assessing the adequacy of financial resources for CCP resolution

On 4 May 2020, the Financial Stability Board (FSB) issued a public consultation report on guidance on financial resources to support central counterparty (CCP) resolution and on the treatment of CCP equity in resolution. The draft guidance is intended to assist CCP resolution authorities and is based on a discussion paper that the FSB published … Continue Reading

ECSDA updates CSDR settlement fail penalties framework

On 17 April 2020, the European Central Securities Depositories Association (ECSDA) updated its CSDR Settlement Fail Penalties Framework. The framework can be used by Central Securities Depositories (CSDs) and their participants as a market practice on how CSDs should develop harmonised settlement fail penalties mechanisms, under the CSD Regulation and its standards. In the document … Continue Reading

ESMA consults on clearing solutions for pension scheme arrangements under EMIR

On 2 April 2020, the European Securities and Markets Authority (ESMA) issued a consultation paper covering a range of issues regarding potential central clearing solutions for pension scheme arrangements (PSAs) under the European Market Infrastructure Regulation (EMIR). The consultation paper is based on ESMA’s first report to the European Commission documenting the progress made to … Continue Reading
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