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Topic: Clearing and settlement

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Jurisdictions move forward towards implementing standards for payment, clearing and settlement

On 14 March 2019, the Committee on Payments and Market Infrastructures and the International Organization of Securities Commissions jointly published an update on the progress jurisdictions have made in implementing international standards for payment systems, central securities depositories, securities settlement systems, central counterparties and trade repositories. The information is based on self-assessments made by individual … Continue Reading

Delegated Regulations under EMIR preparing for no-deal Brexit published in OJ

On 13 March 2019, two Commission Delegated Regulations were published in the Official Journal of the EU (OJ): Commission Delegated Regulation (EU) 2019/396 of 19 December 2018 amending Delegated Regulation (EU) 2015/2205, Delegated Regulation (EU) 2016/592 and Delegated Regulation (EU) 2016/1178 supplementing EMIR as regards the date at which the clearing obligation takes effect for … Continue Reading

Basel Committee and IOSCO guidance on implementation of margin requirements for non-centrally cleared derivatives

On 5 March 2019, the Basel Committee on Banking Supervision (Basel Committee) and  the International Organization of Securities Commissions (IOSCO) published a joint press release on the final implementation phases of the margin requirements for non-centrally cleared derivatives. The press release notes that: the Basel Committee and IOSCO realise that market participants may need to … Continue Reading

Commission consults on draft Decision on the equivalence of Japan Financial Services Agency under EMIR

On 26 February 2019, the European Commission published for consultation the draft text of its Implementing Decision 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 of Article 11 of the European … Continue Reading

ESMA 2018 annual report and 2019 work programme

On 19 February 2019, the European Securities and Markets Authority (ESMA) published its annual report and work programme to highlight its direct supervisory activities during 2018 regarding credit rating agencies (CRAs) and trade repositories (TRs) and outline its main priorities in these areas for 2019. In addition, ESMA outlines its activities regarding the monitoring and … Continue Reading

ESMA announces recognition of UK CCPs in the event of a no-deal Brexit

On 18 February 2019, the European Securities and Markets Authority (ESMA) published a press release announcing that in the event of a no-deal Brexit, three central counterparties (CCPs) established in the UK (LCH Limited, ICE Clear Europe Limited and LME Clear Limited), will be recognised (under Article 25 of the European Market Infrastructure Regulation) to … Continue Reading

GFXC provides update on work

On 14 February 2019, the Global Foreign Exchange Committee (GFXC) published reports produced by its Disclosures and Cover and Deal working groups and released results from the second annual survey on the FX Global Code. One report, “The Role of Disclosure and Transparency in the Global FX Market”, describes eight characteristics to help market participants … Continue Reading

IOSCO final report with best or sound practices for commodity storage and derivative infrastructures

On 7 February 2019, the International Organization of Securities Commissions (IOSCO) published a final report on good or sound practices within commodity storage and delivery infrastructures. The report builds on the findings of IOSCO’s report ‘The Impact of Storage and Delivery Infrastructure on Derivatives Market Pricing’ (Storage Report), which was published in May 2016. The … Continue Reading

Political agreement reached on EMIR Refit Regulation

On 5 February 2019, the Council of the EU announced that it and the European Parliament had reached a preliminary agreement on the draft Regulation amending the EMIR (the EMIR Refit Regulation). The announcement states that the agreed text: introduces a new category of “small financial counterparties” which will be exempted from the obligation to … Continue Reading

ESMA updates Q&As on EMIR implementation

On 4 February 2019, the European Securities and Markets Authority (ESMA) published an updated version of its Q&As on EMIR. The updated Q&As modify two questions concerning trade repositories, specifically regarding contracts with no maturity date (trade repositories Q34), and trades terminated before the reporting deadline (trade repositories Q38). A new question 50 is also … Continue Reading

ESRB report on interoperability arrangements between CCPs

On 1 February 2019, the European Systemic Risk Board (ESRB) published a report on interoperability arrangements between central counterparties (CCPs). A previous report published by the ESRB in 2016 concluded that, although interoperability arrangements provide clearing members with increased opportunities for netting and lead to a reduction in outstanding gross exposures in the system, they are … Continue Reading

ESMA statement EMIR Refit implementation issues

On 31 January 2019, the European Securities and Markets Authority (ESMA) published a statement on EMIR implementation considerations regarding the clearing and trading obligation for small financial counterparties and the backloading requirement with respect to the reporting obligation. Clearing and trading obligation for small financial counterparties Under EMIR, the clearing obligation start date for counterparties … Continue Reading

ESMA updates Q&As on CSDR

On 30 January 2019, ESMA published an updated version of Q&As on the Central Securities Depositories Regulation (CSDR). Two new Q&As have been inserted under Part III of the Q&As (settlement discipline). The new Q&As concern the calculation of cash penalties, and the scope of cash penalties.  … Continue Reading

Updated ECSDA draft CSDR settlement fail penalties framework

On 29 January 2019, the European Central Securities Depositories Association (ECSDA) published an updated version of its draft Central Securities Depositories Regulation (CSDR) penalties framework. The first draft framework was published for consultation in July 2018, and the updated draft reflects comments received during the public consultation. The ECSDA CSDR Penalties Framework is the effort … Continue Reading

Council of EU Decision incorporating CSDR into EEA Agreement published in OJ

On 29 January 2019, there was published in the Official Journal of the EU (OJ), Council Decision (EU) 2019/134 of 21 January 2019 on the position to be adopted, on behalf of the European Union, within the EEA Joint Committee, concerning the amendment of Annex IX (Financial Services) to the EEA Agreement. The decision states … Continue Reading

Commission Delegated Regulation modifying three existing RTS on the clearing obligation

On 19 December 2018, the European Commission adopted a Delegated Regulation amending amending Delegated Regulation (EU) 2015/2205, Delegated Regulation (EU) 2016/592 and Delegated Regulation (EU) 2016/1178 supplementing the European Markets Infrastructure Regulation with regard to regulatory technical standards on the clearing obligation to extend the dates of deferred application of the clearing obligation for certain … Continue Reading

ESAs publish joint EMIR STS standards

On 18 December 2018, the European Supervisory Authorities (ESAs) published: final draft regulatory technical standards (RTS) amending Delegated Regulation (EU) 2016/2251 on risk-mitigation techniques for over-the-counter (OTC) derivative contracts not cleared by a central counterparty (CCP) under Article 11(15) of the European Markets Infrastructure Regulation (EMIR) in the context of simple, transparent and standardised (STS) … Continue Reading

Commission proposes to extend equivalence for Swiss share trading venues for six months

On 17 December 2018, the European Commission issued a press release stating that it is proposing to extend for six months its decision to recognise trading venues in Switzerland as eligible for compliance with the trading obligation for shares set out in MiFID II and MiFIR. The Commission is currently consulting Member States on the … Continue Reading

Implementing Regulation extending transitional periods for CCP exposures own fund requirements published in OJ

On 5 December 2018, there was published in the Official Journal of the EU (OJ) Commission Implementing Regulation (EU) 2018/1889 of 4 December 2018 on the extension of the transitional periods related to own funds requirements for exposures to central counterparties set out in Regulations (EU) No 575/2013 and (EU) No 648/2012 of the European … Continue Reading

ESMA updates Q&As on EMIR implementation

On 3 December 2018, the European Securities and Markets Authority (ESMA) published an updated version of its Q&As on the implementation of the European Market Infrastructure Regulation (EMIR). ESMA has modified the answer to question 9 of its CCP questions section, which covers margin requirements under Article 41 of EMIR.… Continue Reading

European Council agrees compromise position on supervision of third country CCPs

On 3 December 2018, the European Council published a press release announcing that EU Member States had reached a compromise position on the proposed amendments to the European Market Infrastructure Regulation (EMIR) on how EU and third country central counterparties (CCPs) should be supervised, taking particular account of the effects of Brexit on the European … Continue Reading

ESAs final report on draft RTS amending the risk mitigation techniques for OTC derivatives under EMIR

Introduction On 27 November 2018, the European Supervisory Authorities (ESAs) published a final report with draft regulatory technical standards (RTS) proposing to amend the Commission Delegated Regulation on the risk mitigation techniques for over-the-counter (OTC) derivatives not cleared by a central counterparty (CCP) (bilateral margin requirements) under the European Market Infrastructure Regulation (EMIR). The draft … Continue Reading

FIA updates position paper on recommendations for CCP risk management

On 27 November 2018, the Futures Industry Association (FIA) published a position paper on recommendations for central counterparty (CCP) risk management. The position paper makes recommendations in the following areas for CCP risk management, including: membership criteria; CCP governance of self-clearing members; margin adequacy (particularly in low-liquidity markets and in respect of concentration risk and … Continue Reading

HM Treasury update on proposed Regulation amending EMIR supervisory regime for EU and third country CCPs

On 22 November 2018, HM Treasury published a letter updating the House of Common’s European Scrutiny Committee on the progress of the proposed EU Regulation (the Regulation) amending the EMIR supervisory regime for EU and third country central counterparties (CCPs). The letter notes that the European Parliament have agreed a position on the draft Regulation. … Continue Reading
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