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Topic: Regulation and compliance

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ESMA decisions on MiFID II assessments of third country trading venues

On 11 October 2018, the European Securities and Markets Authority (ESMA) published the following decisions from its board of supervisors: Decision of the Board of Supervisors on delegation to the ESMA chair of the assessment regarding third country trading venues for the purposes of Articles 57(4) of MiFID; and Decisions of the Board of Supervisors … Continue Reading

ESMA opinions on position limits

On 5 October 2018, the European Securities and Markets Authority (ESMA) published the following opinions on position limits on: Swiss power base contracts. The ESMA opinion is in response to a notification from the Federal Financial Supervisory Authority (BaFin) under Article 57(5) MiFID II regarding the exact position limits the BaFin intends to set for … Continue Reading

ESMA updates MiFID II Q&As on transparency and market structures

On 4 October 2018, the European Securities and Markets Authority (ESMA) published two updated MiFID II and MiFIR Q&As concerning transparency topics, and market structures. The Q&A on transparency topics modifies a question on the default liquidity status of bonds under Article 2(1)(17)(a) of MiFIR, and introduces two new questions on the classification of derivatives … Continue Reading

ESMA withdraws MiFID automated trading guidelines following their incorporation into MiFID II

On 3 October 2018, the European Securities and Markets Authority (ESMA) announced the withdrawal of the MiFID guidelines on systems and controls in an automated trading environment for trading platforms, investment firms and competent authorities. ESMA has decided to withdraw the guidelines on the basis that they have been fully incorporated into MiFID II and … Continue Reading

ESMA speech on the state of implementation of MiFID II

On 3 October 2018, the European Securities and Markets Authority (ESMA) published a speech, The state of implementation of MiFID II and preparing for Brexit, given by its chair, Steven Maijoor. The first half of the speech focuses on MiFID II covering transparency, the double volume cap (DVC), trading obligation derivatives and systematic internalisers (SIs). … Continue Reading

ESMA updates MIFID II Q&As on investor protection

On 3 October 2018, the European Securities and Markets Authority (ESMA) updated its Q&As on investor protection topics under MiFID II and MiFIR. ESMA provides answers to the following new questions which appear on pages 28 and 48 respectively: In some instances, investment firms use the request for quote (RFQ) system of a trading venue … Continue Reading

ECON report on Regulation amending BMR on low carbon benchmarks and positive carbon impact benchmarks

On 2 October 2018, the European Parliaments’ Committee on Economic and Monetary Affairs (ECON) published a draft report (the Report) on the European Commission’s proposal for Regulation of the European Parliament and of the Council amending Regulation (EU) 2016/1011 on low carbon benchmarks and positive carbon impact benchmarks, published on 24 May 2018 (see our … Continue Reading

ESMA opinion on calculating market size of ancillary activity under MiFID II

On 3 October 2018, the European Securities and Markets Authority (ESMA) published an opinion (the Opinion) on ancillary activity – market size calculation. The Opinion comes as a response from Member State national competent authorities (NCAs) and market participants who have asked for guidance for determining the market size figures in line with Article 2(3) … Continue Reading

ESMA updates Q&As for MiFID II and MiFIR commodity derivatives

On 2 October 2018, the European Securities and Markets Authority (ESMA) published an updated version of its Q&As on MiFID II and MiFIR commodity derivatives topics. A new Q&A on position limits has been inserted providing an answer to the following question: Do position limits also apply to positions in contracts that have been entered … Continue Reading

ESMA 2019 work programme

On 2 October 2018, the European Securities and Markets Authority (ESMA) published its 2019 Annual Work Programme (the Programme). The Programme sets out the key priorities and objectives for ESMA’s work in the forthcoming year. The four key priorities noted for 2019 are: promoting supervisory convergence: the implementation of MiFID II / MiFIR, Prospectus and … Continue Reading

ESMA Decision on binary options product intervention published in OJ

On 1 October 2018, there was published in the Official Journal of the EU (OJ) the European Securities and Markets Authority Decision (EU) 2018/1466 of 21 September 2018 renewing and amending the temporary prohibition in Decision (EU) 2018/795 on the marketing, distribution or sale of binary options to retail clients (the Decision). The decision amends … Continue Reading

ESMA letter to European Commission on MiFID II / MiFIR third-country regimes

On 1 October 2018, the European Securities and Markets Authority (ESMA) wrote to the European Commission in relation to additional issues concerning MiFID II / MiFIR requirements on investor protection and intermediaries. ESMA’s letter follows earlier correspondence with the Commission last year on the MiFID II / MiFIR requirements regarding trading venues. The letter covers: … Continue Reading

ESMA updates Q&As on its temporary product intervention measures

On 28 September 2018, the European Securities and Markets Authority (ESMA) updated its Q&As on temporary product intervention measures on the marketing, distribution or sale of contracts for differences (CFDs) and binary options to retail clients. The updated Q&As provide clarification on the application of the temporary product intervention measures in relation to rolling spot … Continue Reading

ESMA extends prohibition on binary options

On 24 August 2018, the European Securities and Markets Authority (ESMA) announced that it was renewing its prohibition on the marketing, distribution or sale of binary options to retail clients. The extension was due to expire on 2 October 2018. However, on 21 September 2018, ESMA further extended the prohibition for 3 more months from … Continue Reading

ESMA updates BMR Q&As

On 27 September 2018, ESMA published an updated version of its Questions and Answers (Q&As) on the Benchmarks Regulation (BMR). The updated Q&As address: systematic internalisers (BMR article (3)(1)(16)); certificates (BMR article (3)(1)(7)); NAV (BMR article (3)(1)(24)); endorsement applications (BMR article 33(1)); benchmark statements (BMR article 27); and written plans features (BMR article 28(2)).… Continue Reading

ESMA updates CSDR Q&As

On 27 September 2018, the European Securities and Markets Authority (ESMA) published an updated version of its Questions and Answers (Q&As) on the Implementation of the Regulation (EU) No 909/2014 on improving securities settlement in the EU and on central securities depositories. The updated Q&As address: the book-entry form; general organisational requirements for central securities … Continue Reading

ESMA announces two new data completeness indicators for trading venues

On 27 September 2018, the European Securities and Markets Authority (ESMA) published a press release announcing details of new data completeness indicators for trading venues due to be published detailing the delivery of double volume cap (DVC) and bond liquidity data. These will be: the completeness ratio; and the Completeness Shortfall. The completeness ratio is … Continue Reading

ESMA updates Q&As on EMIR implementation

On 27 September 2018, ESMA published an updated version of its Questions and Answers (Q&As) on the Implementation of the Regulation (EU) No 648/2012 on OTC derivatives, central counterparties and trade repositories (EMIR). The updated Q&As cover the following topics: access models (Article 2 of EMIR); and reporting of FX Swaps (Article 9 of EMIR). … Continue Reading

Updated ESMA Q&As on MiFIR data reporting

On 26 September 2018, the European Securities and Markets Authority (ESMA) updated their Questions and Answers (Q&As) on MiFIR data reporting. The updated Q&As cover:  field 14 and field 17 of annex table 3 in Commission Delegated Regulation (EU) 2017/585 (concerning total issued nominal amount); FX Swaps reporting; Interest Rate Swaps reporting; and FIRDS fields … Continue Reading

Council and Parliament include regulatory forbearance in ESAs review proposal

The legislative review of the European Commission proposal amending, amongst other things, the regulations establishing the European Supervisory Authorities (so called “ESAs review proposal”) continues in the Council and in the European Parliament. The Commission’s proposal has given rise to several contentious issues, in particular some Member States have raised concerns about the undue and … Continue Reading

ECON votes to adopt draft reports on tailor made regime for investment firms

On 25 September 2018, the European Parliament’s Committee on Economic and Monetary Affairs (ECON) voted to adopt the European Commission’s (the Commission’s) proposal for a Regulation on the prudential supervision of investment firms, and a Directive on the prudential supervision of investment firms – which amends the CRD IV Directive and the MiFID II Directive … Continue Reading

ESMA opinion on amendments to systematic internalisers’ quote obligations under MiFIR RTS

On 21 September 2018, the European Securities and Markets Authority (ESMA) published an opinion (the Opinion) on the European Commission’s (the Commission’s) revised proposal for amending Delegated Regulation (EU) 2017/587 (RTS 1). On 10 August 2018, the Commission endorsed, with amendments, ESMA’s proposal to amend RTS 1  to specify the concept of ‘prices reflecting prevailing … Continue Reading

ESRB Recommendation amending 2015 Recommendation on EU macroprudential policy measures published in OJ

On 21 September 2018, there was published in the Official Journal of the European Union (OJ) the Recommendation of the European Systemic Risk Board (ESRB) of 16 July 2018 amending Recommendation ESRB/2015/2 on the assessment of cross-border effects of and voluntary reciprocity for macroprudential policy measures (the Recommendation). The Recommendation amends ESRB/2015/2 by recommending that … Continue Reading

IOSCO final report and guidance on conflicts of interest and associated conduct risks

On 18 September 2018, the International Organisation of Securities Commission (IOSCO) published a final report on conflicts of interest and associated conduct risks during the equity capital raising process (the Report). The Report follows the IOSCO Board’s August 2017 mandate for  Committee 3 on Regulation of Market Intermediaries (C3) to examine conflicts of interest and … Continue Reading
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