Corporate & Financial Weekly Digest

Corporate & Financial Weekly Digest

Tag Archives: EU Developments

Three Developments Concerning EU-US Cross-Border Swaps

Posted in CFTC, Derivatives, Dodd-Frank Developments, EU Developments
On October 13, the Commodity Futures Trading Commission and the European Commission (EC) made three announcements that are significant for cross-border swap activity between the United States and Europe. CFTC Margin Rule Comparability Determination. The CFTC has made a determination that the margin rules for uncleared swaps that apply in the European Union are comparable to… Continue Reading

EU Begins Infringement Proceedings Against 19 Member States Failing to Implement MiFID II

Posted in EU Developments, Financial Markets
The European Commission has launched infringement proceedings against 19 member states of the European Union whom it states are failing in transposing the revised Markets in Financial Instruments Directive (MiFID II) into local law. MiFID II is due to go into effect on January 3, 2018, and the deadline for transposition into local law was… Continue Reading

ESMA Updates MiFID II Q&A on Commodity Derivatives

Posted in EU Developments
On October 4, the European Securities and Markets Authority (ESMA) updated a question and answer document (Q&A) relating to commodity derivatives under the revised Markets in Financial Instruments Directive (MiFID II) and the Markets in Financial Instruments Regulation (MiFIR). The updated Q&A contains new questions and answers relating to the following topics: position management controls… Continue Reading

ESMA Highlights Importance of LEI for MiFID II Compliance

Posted in EU Developments
On October 9, the European Securities and Markets Authority (ESMA) published a briefing (Briefing) on the importance of the legal entity identifier (LEI) in enabling firms to comply with their obligations under the revised Markets in Financial Instruments Directive (MiFID II) and the Markets in Financial Instruments Regulation (MiFIR), beginning January 3, 2018.… Continue Reading

ESMA Updates UCITS and AIFMD Q&As

Posted in EU Developments
On October 5, the European Securities and Markets Authority (ESMA) updated two question and answer documents: one relating to the Undertakings for the Collective Investment in Transferable Securities Directive (UCITS) and the other relating to the Alternative Investment Fund Managers Directive (AIFMD).… Continue Reading

ESMA Chairman Comments on MiFID II implementation and Brexit

Posted in EU Developments
On September 29, Reuters published comments from European Securities and Markets Authority (ESMA) Chairman Stephen Maijoor on the implementation of the significantly revised and updated Markets in Financial Instruments Directive (MiFID II and its subordinate regulations and directives) and the implications of Brexit.… Continue Reading

ESMA Translations of Guidelines on MiFID II Reporting, Recordkeeping and Clock Synchronization

Posted in EU Developments
On October 2, the European Securities and Markets Authority (ESMA) published the official, finalized versions of its Guidelines on transaction reporting, order recordkeeping and business clock synchronization under MiFID II—each translated into the official languages of the European Union. The finalized Guidelines appear on ESMA’s webpage in each of the official languages, with the English language… Continue Reading

ESMA Publishes Additional Guidance on Direct Electronic Access

Posted in EU Developments
On October 3, the European Securities and Markets Authority (ESMA) updated its questions and answers on market structures topics (Q&A) under the revised Markets in Financial Instruments Directive (MiFID II) and the accompanying Markets in Financial Instruments Regulation. The updated ESMA Q&A addresses several open questions regarding the provision and receipt of direct electronic access… Continue Reading

Update on MiFID II ESMA Opinions for Pre-Trade Transparency Waivers and Position Limits

Posted in EU Developments
On September 28, the European Securities and Markets Authority (ESMA) issued a press release (Press Release) that it and the national competent authorities (NCAs) had agreed to a work plan (Work Plan) on completing the opinions that must be issued by ESMA under the Markets in Financial Instruments Directive (MiFID II) and Regulation (MiFIR) in… Continue Reading

European Commission Adopts Final Rules on Indirect Clearing

Posted in EU Developments
On September 22, the European Commission adopted two delegated regulations to implement new EU-wide rules on “indirect clearing arrangements” for the exchange-traded derivatives market (ETD Delegated Regulation) and for the over-the-counter (OTC) derivatives market (OTC Delegated Regulation). The term “indirect clearing arrangement” refers to a set of relationships—also called a “chain”—where at least two intermediaries… Continue Reading

ESMA Publishes Final Text of Mandatory Trading Obligation

Posted in EU Developments
On September 29, the European Securities and Markets Authority (ESMA) published the text of the final draft regulatory technical standards (TO RTS) for implementing the mandatory trading obligation under the Markets in Financial Instruments Regulation (MiFIR) for certain standardized over-the-counter (OTC) derivatives. Article 28 of MiFIR mandatory trade execution obligations affect OTC Derivatives that are… Continue Reading

FCA Gives Firms Breathing Room on MiFID II Compliance

Posted in EU Developments
On September 20, a senior official in the UK’s Financial Conduct Authority (FCA) opened the door to an informal conformance period for market participants following the implementation of the revised Markets in Financial Instruments Directive (MiFID II), which takes effect on January 3, 2018. The breadth and scope of the new regulatory and compliance requirements… Continue Reading

MiFID II Direct Electronic Access Template Questionnaire Published

Posted in EU Developments
The revised Markets in Financial Instruments Directive (MiFID II) imposes a new regulatory and compliance regime on providers of direct electronic access (DEA) to European trading venues. In particular, the relevant regulatory technical standards (RTS) require investment firms acting as DEA providers to undertake a due diligence review of their DEA clients to ensure that… Continue Reading

ESMA Publishes Further Guidance on Open Access Transitional Periods

Posted in EU Developments
The Markets in Financial Instruments Regulation (MiFIR) provides for a new “open access” regime between trading venues and central counterparties (CCPs) whereby, subject to meeting certain enumerated conditions, a trading venue may request that a CCP clear trades executed on its platform, and a CCP may request that a trading venue route trades to it… Continue Reading

European Commission Adopts Delegated Regulation Mending MiFID II Systematic Internalizer Definition

Posted in EU Developments
On August 28, the European Commission (EC) published the text of an EC Delegated Regulation (SI Delegated Regulation), amending Delegated Regulation (EU) 2017/565 with respect to the specification of the definition of systematic internalizers (SI) for the purposes of the revised Markets in Financial Instruments Directive (MiFID II).… Continue Reading

ESMA Publishes Final Report on Transfer of Data Between Trade Repositories Under EMIR

Posted in EU Developments
On August 24, the European Securities and Markets Authority (ESMA) published a final report (Report) setting out guidelines (Guidelines) on the transfer of data between trade repositories (TRs) under the European Market Infrastructure Regulation (EMIR). The Guidelines apply to TRs registered or recognised by ESMA and aim to provide TRs with additional clarification on how… Continue Reading

ESMA Updates MiFID II and MiFIR Transaction Reporting Guidelines

Posted in EU Developments
On August 8, European Securities and Markets Authority (ESMA) published an updated version of its guidelines (Guidelines) on transaction reporting, order recordkeeping and clock synchronisation under the revised Markets in Financial Instruments Directive (MiFID II) and the Markets in Financial Instruments Regulation (MiFIR), which were originally published in October 2016 (for further information see the… Continue Reading

FCA Publishes Notification Guide for Firms Wanting To Rely on MiFID II Ancillary Activity Exemption

Posted in Derivatives, EU Developments, Financial Markets, UK Developments
On July 19, the UK Financial Conduct Authority (FCA) updated its webpage on the introduction of the commodity derivatives position limits and reporting regime under the revised Markets in Financial Instruments Directive (MiFID II). The FCA explains that, under the MiFID II Directive, firms or individuals who trade in commodity derivatives on a professional basis… Continue Reading

FCA Publishes MiFID II Passporting Forms

Posted in EU Developments, Financial Markets, UK Developments
On July 17, the UK Financial Conduct Authority (FCA) published a new webpage on passporting under the revised Markets in Financial Instruments Directive (MiFID II). Firms are required to make a passporting application under MiFID II if they intend to be conducting European Economic Area (EEA) activities that have been implemented as new MiFID II… Continue Reading

ESMA Publishes Opinions To Support Supervisory Convergence Post-Brexit

Posted in EU Developments
On July 13, the European Securities and Markets Authority (ESMA) published three opinions (Opinions) to support supervisory convergence (i.e., a consistent approach to authorization, supervision and enforcement) in the European Union in light of the potential relocation of entities from the United Kingdom to the remaining 27 member states of the EU (EU27) following Brexit.… Continue Reading

ESMA Invites European Commission To Strengthen EU Third-country Equivalence Regime For Key Market Players In Light of Brexit

Posted in EU Developments
On July 10, the European Securities and Markets Authority (ESMA) published a letter (dated July 7) (Letter) from Steven Maijoor, ESMA chair, to Valdis Dombrovskis, European Commission (EC) vice president, on the regulatory regimes for non-EU countries (known as “third countries”) where they are within ESMA’s area of authority.… Continue Reading