The Netherlands (and EU regulation)

Council note comparing trilogue positions on proposed Regulation on recovery and resolution of CCPs

On 19 December 2019, the Council of the EU (Council) published a note from the General Secretariat of the Council to the Delegations attaching the following addenda: a three-column table setting out the negotiating positions of the European Commission (Commission), the Council and the European Parliament (Parliament) in respect of the proposed amendments to the … Continue Reading

Commission inception impact assessment on a legislative proposal for digital operational resilience framework for the financial services sector

On 19 December 2019, the European Commission (Commission) published an inception impact assessment on a proposal for a regulation on digital operational resilience for the financial services sector. The impact assessment has been published alongside a public consultation requesting feedback on how the financial services sector can be improved to be more secure and resilient … Continue Reading

Commission inception impact assessment on a legislative proposal for EU framework on markets in cryptoassets

On 19 December 2019, the European Commission (Commission) published an inception impact assessment entitled ‘Directive/regulation establishing a European framework for markets in cryptoassets’. The impact assessment has been published alongside a public consultation requesting feedback on the current regulatory framework for cryptoassets as part of the Commission’s work to promote a new Digital Finance Strategy … Continue Reading

Commission adopts Implementing Decision amending Commission Implementing Decision on temporary equivalence of UK regulatory framework for CCPs

On 19 December 2019, the European Commission (Commission) adopted an Implementing Decision (Amending Decision) amending Implementing Decision (EU) 2018/2031 (Temporary Equivalence Decision) regarding the temporary equivalence of the UK’s regulatory framework for central counterparties (CCPs) under the regulation on over-the-counter derivatives, CCPs and trade repositories (EMIR). For further information on the Temporary Equivalence Decision, see … Continue Reading

European Commission consults on an EU framework for markets in crypto-assets

On 19 December 2019, the European Commission (Commission) launched a public consultation on the future EU framework for markets in crypto-assets. Launched in parallel with a public consultation on a digital operational resilience framework for financial services, both consultations are initial steps towards the implementation of the new Commission’s President, Ursula von der Leyen, objective … Continue Reading

Commission launches consultation on digital operational resilience framework for financial services

On 19 December 2019, the European Commission (Commission) launched a public consultation on a digital operational resilience framework for financial services. The consultation, which was published in parallel with a separate consultation on crypto assets, comes as the Commission is working towards a new Digital Finance Strategy. The aim of the strategy would be to … Continue Reading

ESMA announces MiFID scheduled publication dates for 2020

On 19 December 2019, the European Securities and Markets Authority (ESMA) published its 2020 calendar of MiFID II / MiFIR relevant publications for the transparency regime and systematic internalisers’ tests. During 2020, ESMA will publish for the first-time transparency and systemic internalisers calculations for derivatives. During 2019, publications on derivatives were not executed given the … Continue Reading

EBA consults to revise standards to identify staff with a material impact on the institution’s risk profile

On 19 December 2019, the European Banking Authority (EBA) issued a consultation paper on draft regulatory technical standards (RTS) on the criteria to identify all categories of staff whose professional activities have a material impact on the institutions’ risk profile. The draft RTS have been revised in light of Article 94(2) of CRD IV as … Continue Reading

AFME, FIA, ICMA, ISDA and ISLA publish Master Regulatory Reporting Agreement

On 19 December 2019, the  Association of Financial Markets in Europe, Futures Industry Association, International Capital Market Association, International Swaps and Derivatives Association, Inc. and International Securities Lending Association co-published a new agreement intended to simplify reporting across different EU regulatory regimes. The Master Regulatory Reporting Agreement gives market participants an option to use a … Continue Reading

ECB Letter: Clarification of the process regarding recognition of contractual netting agreements as risk-reducing

On 19 December 2019, the European Central Bank (ECB) published a letter that it had sent to significant institutions in October, which provides clarification of the process to be applied by it as of 10 November 2019 for significant credit institutions with regard to the recognition of contractual netting agreements as risk reducing pursuant to … Continue Reading

Commission Delegated Regulation amending RTS on risk mitigation techniques on uncleared OTC derivatives under EMIR in context of STS securitisations

On 18 December 2019, the Council of the EU published a final draft of the Commission Delegated Regulation amending Delegated Regulation (EU) 2016/2251 as regards the specification of the treatment of over-the-counter (OTC) derivatives in connection with certain simple, transparent and standardised securitisations for hedging purposes. Article 11 of the European Market Infrastructure Regulation  (EMIR) … Continue Reading

FSB report assesses vulnerabilities of leveraged loans and CLOs

On 19 December 2019, the Financial Stability Board (FSB) published a report on vulnerabilities associated with leveraged loans and collateralised loan obligations (CLOs). The report assesses the financial stability implications of developments in the leveraged loan and CLO markets. It provides a global perspective by combining available data and analyses from FSB members. The main … Continue Reading

FSB report on the need to reduce risks to financial stability from LIBOR transition

On 18 December 2019, the Financial Stability Board (FSB) published its annual progress report on the implementation of its 2014 recommendations to reform major interest rate benchmarks. The report emphasises that the continued reliance of global financial markets on LIBOR poses risks to financial stability and the FSB calls for significant and sustained efforts by … Continue Reading

IOSCO consults on conflicts of interest and DLT relating to debt capital raising

On 16 December 2019, the International Organization of Securities Commissions (IOSCO) published a consultation paper with proposed guidance addressing potential conflicts of interest and associated conduct risks that stem from market intermediaries in the debt capital raising process. The proposed guidance consists of eight measures relating to the pricing of debt securities and related risk … Continue Reading

EBA draft standards on key aspects related to the implementation of the standardised approach for counterparty credit risk

On 18 December 2019, the European Banking Authority (EBA) published final draft regulatory technical standards (RTS) on the standardised approach for counterparty credit risk (SA-CCR). The final draft RTS have been developed according to Article 277(5) and Article 279a(3) of the Capital Requirements Regulation, as amended by Regulation (EU) 2019/876. Article 277(5) mandates the EBA … Continue Reading

Commission implementing decisions on CRR regulatory equivalence – Serbia and South Korea

On 18 December 2019, there was published in the Official Journal of the EU (OJ), European Commission Implementing Decision (EU) 2019/2166 relating to the equivalence of third country jurisdictions’ supervisory and regulatory arrangements in accordance with the Capital Requirements Regulation (CRR). Implementing Decision (EU) 2019/2166 amends Implementing Decision 2014/908/EU to add Serbia and South Korea … Continue Reading

Covered bond reform – legislation published in the OJ

On 18 December 2019, there was published in the Official Journal of the EU (OJ): Regulation (EU) 2019/2160 amending Regulation (EU) No 575/2013 as regards exposures in the form of covered bonds; and Directive (EU) 2019/2162 amending Directives 2009/65/EC and 2014/59/EU on the issue of covered bonds and covered bond public supervision. The legislation comes … Continue Reading

Council of EU invites approval of final compromise text of proposed ‘taxonomy Regulation’

On 18 December 2019, the Council of the EU (Council) published an ‘I’ Item note (dated 17 December 2019) on the proposed Regulation on the establishment of a framework to facilitate sustainable investment. Following negotiations between the Council and the European Parliament (Parliament), political agreement between the institutions was achieved on 17 December 2019 – … Continue Reading

ECB paper on exploring anonymity in central bank digital currencies

On 17 December 2019, the European Central Bank (ECB) published its latest in focus paper which explores anonymity in central bank digital currencies. The paper discusses a proof of concept for anonymity in digital cash (referred to as “central bank digital currency”) that has been developed by the European System of Central Banks. The main … Continue Reading

ESMA proposes strengthened rules to address undue short-termism in securities markets

On 18 December 2019, the European Securities and Markets Authority (ESMA) published a report on undue short-term pressure on corporations. The report is in response to the call for advice from the European Commission as part of its Action Plan, Financing Sustainable Growth, and will inform policy actions that could be taken to ensure that … Continue Reading

EBA calls on banks to consider long-term horizons in their strategies and business activities

On 18 December 2019, the European Banking Authority (EBA) published a report on undue short-term pressures from the financial sector on corporations. The report is in response to the call for advice from the European Commission as part of its Action Plan, Financing Sustainable Growth, and will inform policy actions that could be taken to … Continue Reading

DNB roundtable on sustainability of the financial sector

On 17 December 2019, the Dutch Central Bank (De Nederlandsche Bank, DNB) organised a roundtable session on the sustainability of the financial sector with the standing committee on finance (vaste commissie voor Financiën). A day earlier, DNB published a position paper in preparation for the roundtable session which summarises the results of various DNB reports … Continue Reading

AFM publishes Principles for Information Security

On 19 December 2019, the Netherlands Authority for the Financial Markets (Autoriteit Financiële Markten, the AFM) published on its website Principles for Information Security (the Principles). The Principles were submitted for consultation earlier this year and have now become final. The AFM indicates that the management of information security risks is becoming increasingly important as … Continue Reading

FSB 2020 work programme

On 17 December 2019, the Financial Stability Board (FSB) published its work programme for 2020.  The FSB’s work programme is split across five areas: addressing new and emerging vulnerabilities in the financial system: including more detailed work on FinTech, global stablecoins, cross-border payment systems and cyber resilience; finalising and operationalising post-crisis reforms: including building resilient … Continue Reading
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