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Topic: Clearing and settlement

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Basel Committee and IOSCO agree to one-year extension of the final implementation phase of the margin requirements for non-centrally cleared derivatives

On 23 July 2019, the Basel Committee on Banking Supervision (Basel Committee) and the International Organization of Securities Commissions (IOSCO) issued a joint statement confirming that the final implementation of the margin requirements for non-centrally cleared derivatives would be extended by one year. With this extension, the final implementation phase will take place on 1 … Continue Reading

ESMA publishes its annual peer review report on EU CCPs supervision

On 22 July 2019, the European Securities and Markets Authority (ESMA) published its annual peer review report on the overall supervision of EU central counterparties (CCPs) by Member State national competent authorities (NCAs). The peer review covered NCAs of CCPs authorised under the European Markets Infrastructure Regulation (EMIR) as of 1 June 2018. On this … Continue Reading

ESMA updates its EMIR Q&A

On 15 July 2019, the European Securities and Markets Authority (ESMA) updated its Q&As on practical questions regarding the European Markets Infrastructure Regulation (EMIR). ESMA has updated the Q&As so that they are aligned with the EMIR Refit Regulation. The following have been amended or deleted: General questions – Question 1 – Funds, counterparties – … Continue Reading

ESMA statement on application of MiFIR trading obligation following entry into force of EMIR Refit Regulation

On 12 July 2019, the European Securities and Markets Authority (ESMA) issued a public statement addressing the misalignment between the scope of counterparties subject to the EMIR clearing obligation (CO) and those subject to the MiFIR derivatives trading obligation (DTO). ESMA’s statement addresses two areas: clearing and trading obligations for small financial counterparties (FCs) and … Continue Reading

ESMA updates the CSDR Q & As

On 1 July 2019, the European Securities and Markets Authority (ESMA) updated its Q&As regarding the implementation of the Central Securities Depository Regulation (CSDR). ESMA has updated Part IV of the Q&As dealing with the scope of internalised settlement. In particular, it provides the following question and answer: What financial instruments should be covered by … Continue Reading

ESMA updates CSDR Q&As

On 18 June 2019, the European Securities and Markets Authority (ESMA) updated its Q&As on the implementation of the Central Securities Depository Regulation (CSDR). The ESMA press release that accompanies this latest version of the Q&As states that the updates: clarify the interaction between the main authorisation procedure (Article 17 of the CSDR) and the … Continue Reading

Commission Delegated Regulation adding People’s Bank of China to Delegated Regulation 2017/1799

On 20 June 2019, there was published in the Official Journal of the European Union (OJ), Commission Delegated Regulation (EU) 2019/1000 of 14 March 2019 amending Delegated Regulation (EU) 2017/1799 as regards the exemption of the People’s Bank of China from the pre- and post-trade transparency requirements in MiFIR. The Delegated Regulation comes into force … Continue Reading

ECB decision and guidelines on TARGET2-Securities

On 20 June 2019, there was published in the Official Journal of the European Union (OJ), Decision (EU) 2019/1006 of the European Central Bank (ECB) of June 7, 2019 amending Decision ECB/2011/20 establishing detailed rules and procedures for implementing the eligibility criteria for central securities depositories to access TARGET2-Securities services. On the same date there … Continue Reading

ESMA updates EMIR Q&As

On 13 June 2019, the European Securities and Markets Authority (ESMA) published an updated version of its Q&As on the implementation of EMIR. The updated Q&As contain: a new Q&A on the calculation of the clearing threshold under Article 10 of EMIR; and a new Q&A on the reporting obligation under Article 9(1) of EMIR.… Continue Reading

ESMA letter on EMIR Refit hedging exemption for calculation of clearing thresholds for non-financial groups

On 14 June 2019, the European Securities and Markets Authority (ESMA)  published a letter to the Commission, dated 7 June 2019, regarding the calculation of the month-end average positions of financial counterparties (FC) in non-financial groups under the EMIR Refit regulation, which is used to determine whether FCs are subject to the clearing obligation when … Continue Reading

EMIR Refit

Introduction The EMIR Refit Regulation (EMIR Refit) will enter into force on 17 June 2019. With some exceptions, it will apply from that date. The purpose of the EMIR Refit is to amend and simplify the European Markets Infrastructure Regulation (EMIR) “to address disproportionate compliance costs, transparency issues and insufficient access to clearing for certain … Continue Reading

CPMI / IOSCO discussion paper on CCP default management auctions

On 5 June 2019, the Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) jointly published a discussion paper on central counterparty (CCP) default management auctions. A default management auction is one of the tools that a CCP may use to transfer a defaulting participant’s positions or subset thereof … Continue Reading

EMMI adopts changes to EONIA methodology

On 31 May 2019, the European Money Markets Institute (EMMI) announced that on 2 October 2019, the change in EONIA’s methodology will take effect. This announcement was published alongside the summary of the stakeholder consultation feedback on the recommendations for EONIA by the Working Group on euro risk-free rates. In view of the feedback received, … Continue Reading

ESMA updates Q&As on EMIR implementation

On 27 May 2019, the European Securities and Markets Authority (ESMA) published an updated version of its Q&As on the implementation of the European Markets Infrastructure Regulation (EMIR). The updated Q&As contain: an amended Q&A on the procedure for financial counterparties and non-financial counterparties to notify that they exceed or no longer exceed clearing thresholds; … Continue Reading

ESMA consults on guidelines on TRs’ reporting obligations

On 27 May 2019, the European Securities and Markets Authority (ESMA) published a consultation paper on draft guidelines on periodic information and notification of material changes to be submitted to ESMA by trade repositories (TRs). The draft guidelines set out the information that should be periodically submitted by TRs to ESMA. The draft guidelines clarify … Continue Reading

EMIR Refit Regulation published in OJ

On 28 May 2019, there was published in the Official Journal of the EU (OJ) Regulation (EU) 2019/834 amending EMIR as regards the clearing obligation, the suspension of the clearing obligation, the reporting requirements, the risk-mitigation techniques for OTC derivative contracts not cleared by a central counterparty, the registration and supervision of trade repositories and the … Continue Reading

ESMA updates Q&As on CSDR

On 24 May 2019, the European Securities and Markets Authority (ESMA) updated its Q&As on the Central Securities Depositories Regulation (CSDR) by inserting a new section on internalised settlement reporting requirements (pages 26 and 27) covering: matching: the first Q&A in this new section clarifies that, in the case of internalised settlement instructions that require … Continue Reading

Council of EU adopts EMIR Refit Regulation

On 14 May 2019, the European Council announced that it has adopted the EMIR Refit Regulation at first reading. The announcement states that the Regulation adopted by Ministers amends and simplifies the European Markets Infrastructure Regulation (EMIR) “to address disproportionate compliance costs, transparency issues and insufficient access to clearing for certain counterparties.” It also notes … Continue Reading

FSB designates DSB as UPI Service Provider

On 2 May 2019, the Financial Stability Board (FSB) announced that it has designated The Derivatives Service Bureau (DSB) Ltd (DSB) as the service provider for the future Unique Product Identifier (UPI) system. As the sole issuer of UPI codes, the DSB will also be the operator of the UPI reference data library. The designation … Continue Reading

Equivalence decision on supervision of derivative transactions in Japan published in OJ

On 2 May 2019 there was published in the Official Journal of the EU, Commission Implementing Decision (EU) 2019/684 of 25 April 2019 on the recognition of the legal, supervisory and enforcement arrangements of Japan for derivatives transactions supervised by the Japan Financial Services Agency as equivalent to the valuation, dispute resolution and margin requirements … Continue Reading

Delegated Regulation amending clearing obligation RTS published in OJ

There has been published in the Official Journal of the EU (OJ) Commission Delegated Regulation (EU) 2019/667 of 19 December 2018 amending Delegated Regulations (EU) 2015/2205, (EU) 2016/592 and (EU) 2016/1178 to extend the dates of deferred application of the clearing obligation for certain over-the-counter derivative contracts. The Delegated Regulation, which reflects a mandate under … Continue Reading

Official translations of ESMA guidelines on CCP conflict of interest management under EMIR

On 5 April 2019, the European Securities and Markets Authority (ESMA) published the official translations of its guidelines on central counterparty (CCP) conflict of interest management under the European Markets Infrastructure Regulation. The guidelines will apply from 5 June 2019 (two months from the date of publication of the guidelines in the official languages of … Continue Reading

Framework for ESMA’s third CCP stress test

On 3 April 2019, the European Securities and Markets Authority (ESMA) published the framework of its third EU-wide stress test exercise for central counterparties (CCPs). The framework details the design of the CCP stress test exercise, including the objectives, the methodology and the key milestones. The exercise covers both credit and liquidity risks and further … Continue Reading

Commission adopts Delegated Regulations under EMIR to prepare for no-deal Brexit

On 28 Mach 2019, the European Commission adopted the following Delegated Regulations under EMIR in preparation for a no deal Brexit scenario: Commission Delegated Regulation (EU) of 28.3.2019 amending Delegated Regulation (EU) 2016/2251 supplementing EMIR as regards the date until which counterparties may continue to apply their risk-management procedures for certain over-the-counter derivative contracts not … Continue Reading
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