Italy (and EU regulation)

EBA consults on technical standards on indirect subscription of MREL instruments within groups

On 27 July 2020, the European Banking Authority (EBA) issued a public consultation on draft Regulatory Technical Standards (RTS)  specifying the methods to avoid that instruments indirectly subscribed by the resolution entity for the purpose of meeting the minimum requirement for own funds and eligible liabilities (MREL), applicable to entities that are not themselves resolution … Continue Reading

Coronavirus response: How the Capital Markets Union can support Europe’s recoveryc

On 24 July 2020, the European Commission adopted a Capital Markets Recovery Package, as part of its overall coronavirus recovery strategy. The package contains targeted adjustments to the: Prospectus Regulation. The Commission is proposing certain targeted amendments to this Regulation to facilitate fundraising by banks that play an essential role in financing the recovery of … Continue Reading

Commission publishes targeted amendments to the Benchmarks Regulation

On 24 July 2020, the European Commission published proposed targeted amendments to the EU Benchmarks Regulation (BMR) in light of the fact that the London Interbank Offered Rate (LIBOR) is expected to be phased out by the end of 2021. As there will be contracts and financial instruments referencing LIBOR still in place at the … Continue Reading

Commission publishes MiFID “quick fix” legislative proposal and launches consultation on amendments to provisions on research

On 24 July 2020, the European Commission published its long-awaited legislative proposal for targeted amendments to Directive 2014/65/EU on markets in financial instruments (MiFID II)  as regards information requirements, product governance and position limits to help the recovery from the COVID-19 pandemic (MiFID “quick fix”). In parallel, the Commission launched a public consultation on amendments … Continue Reading

EBA consults on technical standards on reporting of MREL decisions

On 23 July 2020, the European Banking Authority (EBA) issued a public consultation on draft Implementing Technical Standards (ITS) specifying uniform reporting templates, instructions and methodology for the identification and transmission, by Member State resolution authorities to the EBA, of information on minimum requirements for own funds and eligible liabilities (MREL). The BRRD has been … Continue Reading

EBA consults on estimation of Pillar 2 and combined buffer requirements for the purpose of setting MREL

On 23 July 2020, the European Banking Authority (EBA) issued a public consultation on its draft Regulatory Technical Standards (RTS) specifying the methodology to be used by Member State resolution authorities to estimate the Pillar 2 (P2R) and combined buffer requirements (CBR)  at resolution group level for the purpose of setting the minimum requirement for … Continue Reading

EBA consults on technical standards on impracticability of contractual recognition of bail-in

On 23 July 2020, the European Banking Authority (EBA) issued a public consultation on draft Regulatory Technical Standards (RTS) and draft Implementing Technical Standards (ITS) on the impracticality of contractual recognition of write-down and conversion powers and related notifications as laid down in the Bank Recovery and Resolution Directive (BRRD). The statutory background to the … Continue Reading

ECB consultation on the publication by the ECB of compounded term rates using the €STR

On 24 July 2020, the European Central Bank (ECB) issued a public consultation on the publication by it of compounded term rates using the euro short-term rate (€STR). The motivation behind the consultation is that the ECB is to provide benchmark users with compounded values of the €STR for selected maturities. These values will be … Continue Reading

EBA final report: Guidelines on the pragmatic 2020 supervisory review and evaluation process in light of the COVID‐19 crisis

On 23 July 2020, the European Banking Authority (EBA) published guidelines that make available to Member State competent authorities a special procedure for the supervisory review and evaluation process (SREP) for the year 2020. The new guidelines identify how flexibility and pragmatism could be exercised in relation to the SREP framework in the context of … Continue Reading

ECB publishes good practices for banks to prepare for benchmark rate reforms

On 23 July 2020, the European Central Bank (ECB) published the results of its industry-wide assessment of banks’ preparedness for the benchmark interest rate reforms. While banks are generally well aware of the complexity of the reforms and the challenges involved, their level of preparation leaves room for improvement, according to the survey. Banks are … Continue Reading

ESMA report: MiFID II / MiFIR annual report under RTS 2

On 23 July 2020, the European Securities and Markets Authority (ESMA) published a MiFID II / MiFIR Annual Review Report under Commission Delegated Regulation (EU) 2017/583 (RTS 2). The report lays down the thresholds for the liquidity criterion ‘average daily number of trades’ for bonds, as well as the trade percentiles. The report covers the … Continue Reading

EBA consults on draft RTS on the determination of indirect exposures to underlying clients of derivatives and credit default derivatives under Article 390(9) CRR2

On 23 July 2020, the European Banking Authority (EBA) issued a consultation paper on draft regulatory technical standards (RTS) specifying how institutions should determine exposures arising from derivative and credit derivative contracts not entered directly into with a client but whose underlying debt or equity instrument was issued by a client. Article 390(5) of the … Continue Reading

Commission adopts Delegated Regulations supplementing the BMR

On 22 July 2020, the European Commission adopted the following Delegated Regulations supplementing the Benchmarks Regulation on sustainable finance issues: Commission Delegated Regulation (EU) of 17.7.2020 supplementing Regulation (EU) 2016/1011 of the European Parliament and of the Council as regards minimum standards for EU Climate Transition Benchmarks and EU Paris-aligned Benchmarks. The objective of this … Continue Reading

The EBA observes an increase in high earners in 2018 and the persistence of differences in remuneration practices across the EU

On 22 July 2020, the European Banking Authority published its report on benchmarking of remuneration practices in EU banks for the financial years 2017 and 2018 and high earners data for 2018. The data shows that in 2018, the number of high earners in EU banks receiving a remuneration of more than EUR 1 million … Continue Reading

EBA is looking into ways to reduce reporting costs

On 22 July 2020, the European Banking Authority (EBA) issued a questionnaire addressed to all European banks and a call for case studies to collect evidence on reporting costs as well as industry views on ways to reduce such costs and make supervisory reporting more efficient. The EBA is mandated by Article 430(8) of the … Continue Reading

EBA consults on guidelines specifying the conditions for the substitution approach in the context of “tri-party transactions” for large exposures purposes

On 22 July 2020, the European Banking Authority (EBA) issued a consultation paper detailing on the three conditions institutions should comply with when they decide to make use of the alternative treatment with regard to tri-party repurchase agreements facilitated by a tri-party agent. Article 403(3) of the Capital Requirements Regulation (CRR) provides that an institution … Continue Reading

EBA consults on draft technical standards on default probabilities and loss given default for default risk model under the internal approach for market risk

On 22 July 2020, the European Banking Authority (EBA) issued a consultation paper on draft regulatory technical standards on default probabilities (PDs) and loss given default (LGD) for default risk model for institutions using the new Internal Model Approach (IMA) under the Fundamental Review of the Trading Book (FRTB). Institutions using an alternative internal model … Continue Reading

ISDA Brexit FAQs (version 8)

On 21 July 2020, the ISDA published version 8 of its Brexit FAQs. The following FAQs have been updated to the position as at 30 June 2020 and therefore do not reflect any developments after that date: Q16 – After IP completion day, what is the ability of financial services firms established in the UK … Continue Reading

FSB stock take on climate-related risks in financial stability monitoring

On 22 July 2020, the Financial Stability Board (FSB) published a stocktake of financial authorities’ experience in including climate-related risks in financial stability monitoring. It draws on information provided by FSB member national authorities, international bodies and a workshop with the private sector. The stocktake finds that financial authorities vary in terms of whether – … Continue Reading

Council adopts new rules for crowdfunding platforms

On 20 July 2020, the Council of the EU announced that it had adopted a Directive and a Regulation on crowdfunding. The Council’s press release on the new legislative measures states: The new legislative framework is part of the EU Capital Markets Union project. It will remove barriers for crowdfunding platforms to provide their services … Continue Reading

Commission Delegated Regulations supplementing BMR on sustainable finance issues

On 17 July 2020, the European Commission updated its web page concerning implementing and delegated acts on the Benchmarks Regulation (BMR) by adding the following: Commission Delegated Regulation supplementing Regulation (EU) 2016/1011 of the European Parliament and of the Council as regards the explanation in the benchmark statement of how environmental, social and governance factors … Continue Reading

ESMA guidance on waivers from pre-trade transparency

On 17 July 2020, the European Securities and Markets Authority (ESMA) published an opinion providing guidance on pre-trade transparency waiver for equity and non-equity instruments. The opinion replaces the earlier guidance from the Committee of European Securities Regulators and ESMA’s opinions on waivers from pre-trade transparency under MiFID II. The guidance provides market participants with … Continue Reading

ESMA tells market participants to continue preparations for the end of the UK transition period

On 17 July 2020, the European Securities and Markets Authority (ESMA) issued a statement on its website urging market participants to finalise their preparations and implement suitable contingency plans in advance of the end of the transition period. ESMA also refers to its previous Brexit statements, in particular its general opinion to support supervisory convergence … Continue Reading

Commission proposal for a Regulation on cross-border payments in the Union

On 17 July 2020, the European Commission adopted a legislative proposal for a new Regulation on cross-border payments in the EU. It has also published the annexes to the proposed Regulation. The purpose of the proposed Regulation is to undertake a codification of Regulation (EC) No 924/2009 of the European Parliament and of the Council … Continue Reading
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