Corporate & Financial Weekly Digest

Corporate & Financial Weekly Digest

Tag Archives: EU Developments

European Commission Publishes CMU Report on National Barriers to Capital Flows

Posted in EU Developments, Financial Markets
On February 27, the European Commission (EC) published a report (Report) on its capital markets union (CMU) initiative addressing national barriers to capital flows. The Report sets out the initial findings of the EC’s group of representatives of member states on national barriers to cross-border capital flows and the steps that the EC expects member… Continue Reading

ESAs Publish Statement On Variation Margin Exchange

Posted in EU Developments, Financial Markets
On February 23, the European Supervisory Authorities (ESAs), which consist of the European Banking Authority, European Insurance and Occupational Pensions Authority, and the European Securities and Markets Authority, published a joint statement (Statement) in response to industry requests relating to operational challenges in meeting the deadline of March 1 for exchanging variation margin imposed by… Continue Reading

ESMA Publishes Revised Draft ITS on MiFID II Position Reporting

Posted in EU Developments, Financial Markets
On February 9, the European Securities and Markets Authority (ESMA) published a revised draft implementing technical standards (ITS) on position reporting under the revised Markets in Financial Instruments Directive (MiFID II). The ITS were originally published in 2015. Since then, ESMA has identified a number of technical amendments necessary for the correct functioning of the… Continue Reading

ESMA Publishes Letter to the European Commission on Potential Exploitation of MiFID II Systematic Internalizer Regime

Posted in EU Developments, Financial Markets
On February 14, the European Securities and Markets Authority (ESMA) published a letter (Letter), dated February 1, to the European Commission (EC) in relation to the systematic internalizer (SI) regime under the revised Markets in Financial Instruments Directive (MiFID II) and the associated Markets in Financial Instruments Regulation (MiFIR).… Continue Reading

ESMA Publishes Practical Guidance on EEA Major Holdings Notification Obligations

Posted in EU Developments, Financial Markets
On February 3, the European Securities and Markets Authority (ESMA) published a practical guide (Guide) to the national rules across the European Economic Area (EEA) on the implementation of the EU/EEA Transparency Directive’s requirements relating to major shareholding notifications (i.e., EEA long-position reporting requirements).… Continue Reading

CFTC Releases Time Limited No-Action Relief for Swap Dealers Complying With EU Requirements

Posted in CFTC, Derivatives, EU Developments
On February 1, the Commodity Futures Trading Commission’s Division of Swap Dealer and Intermediary Oversight (DSIO) issued No Action Letter 17-05, which allows certain swap dealers to substitute—for a limited period of time—compliance with the non-centrally cleared OTC derivative margin requirements applicable in the European Union (the “EU Rules”) for compliance with certain of the… Continue Reading

ESMA Updates Q&As on MiFID II Transparency and Market Structure Topics

Posted in EU Developments, Financial Markets
On January 31, the European Securities and Markets Authority (ESMA) updated two Question and Answer (Q&A) documents on implementation issues relating to transparency and market structure under the revised Markets in Financial Instruments Directive (MiFID II) and the associated Markets in Financial Instruments Regulation (MiFIR).… Continue Reading

ESMA Issues Open Letter on EMIR Review and Sanctioning Powers to the EC

Posted in EU Developments, Financial Markets
On January 27, the European Securities and Markets Authority (ESMA) wrote an open letter (Letter) to the European Commission (EC) to ask it to consider a number of issues relating to its supervisory and sanctioning powers under the European Market Infrastructure Regulation (EMIR). This request is in the context of the ongoing review of EMIR… Continue Reading

UK Supreme Court Rules That Article 50 Requires an Act of Parliament and Government Publishes Withdrawal Bill

Posted in Brexit, Brexit/UK Developments
On January 24, the UK Supreme Court issued its judgment in R (on the application of Miller and Dos Santos) v Secretary of State for Exiting the European Union—the appeal of the High Court of Justice’s decision of November 3, 2016—on the proper constitutional process that the UK government must follow in submitting notice to… Continue Reading

ESMA Publishes Briefing on MiFID II Technical Data Reporting Requirements

Posted in EU Developments, Financial Markets
On January 13, the European Securities and Markets Authority (ESMA) published a briefing paper (Briefing Paper) summarizing technical data reporting requirements under the revised Markets in Financial Instruments Directive (MiFID II) and the associated Markets in Financial Instruments Regulation (MiFIR).… Continue Reading

UK Announces Brexit Negotiating Principles

Posted in Brexit, Brexit/UK Developments, UK Developments
On January 17, UK Prime Minister Theresa May laid out the UK government’s negotiating principles for the United Kingdom’s departure from the European Union, which heralds a new, more substantive phase of the Brexit process. The Prime Minister’s theme for the speech was the creation of a “stronger, fairer and global Britain” alongside a “new… Continue Reading

ESMA Publishes Follow-Up Report on Peer Review of Best Execution

Posted in EU Developments, Financial Markets, UK Developments
On January 11, the European Securities and Markets Authority (ESMA) published its follow-up report (Follow-Up Report) to its peer review on best execution of European Economic Area (EEA) national regulators. Best execution refers to the obligation under article 21 of the Markets in Financial Instruments Directive (MiFID) for investment firms to execute orders on terms… Continue Reading

Update on UK Brexit Challenge

Posted in Brexit, Brexit/UK Developments, EU Developments
On November 25, the UK Supreme Court published an update (Update) on its website concerning R (on the application of Miller & Dos Santos) v Secretary of State for Exiting the European Union (the Article 50 “Brexit” case). The Update confirms that the UK Supreme Court had considered and determined the outcomes of further applications… Continue Reading

UK FCA Confirms No Guidance to be Published on the Application of the UCITS Remuneration Code

Posted in EU Developments, Financial Markets, UK Developments
On November 17, the UK Financial Conduct Authority (FCA) updated its webpage focused on Undertakings for Collective Investment in Transferable Securities fund (UCITS) remuneration issues to confirm that it does not intend to publish any specific guidance on the application of the UCITS Remuneration Code. The FCA notes that UCITS management companies may wish to… Continue Reading

European Commission Adopts MiFID II Delegated Regulations

Posted in Derivatives, EU Developments, Financial Markets
On December 1, the European Commission adopted two delegated regulations (together, Delegated Regulations) to supplement the revised Markets in Financial Instruments Directive. The Delegated Regulations adopted include: regulation regarding the application of position limits to commodity derivatives, available here; and regulation pertaining to the criteria for establishing when an activity is considered to be ancillary… Continue Reading

Briefing Paper on Legislating for Brexit and the Great Repeal Bill Published

Posted in Brexit, Brexit/UK Developments, EU Developments, UK Developments
On November 21, the House of Commons published a briefing paper (Paper) that suggested legislation regarding Brexit and the Great Repeal Bill. The Paper covers topics including the likely features of the Great Repeal Bill, the process for repealing the European Communications Act 1972 (ECA), the transposition of EU law into UK law, other primary… Continue Reading

EU Commission Publishes Roadmap of Proposal To Criminalize Money Laundering

Posted in EU Developments, Financial Markets
On October 25, the European Commission (Commission) published a roadmap (Roadmap) in relation to its proposal for an EU directive on the criminalization of money laundering. The Roadmap forms part of the Commission’s action plan (Action Plan) against terrorism financing, published in February 2016, and aims to introduce minimum rules for the definition of the… Continue Reading

Who Pays for MiFID II implementation in UK?

Posted in EU Developments, Financial Markets
On November 16, the UK Financial Conduct Authority (FCA) published a consultation (Consultation) on regulatory fees and levies, and its policy proposals for 2017/2018. The Consultation sets forth the FCA’s proposals on: 1) the structure of a new levy to fund action against illegal money lending; 2) the relevant groups (fee-blocks) of regulated firms from… Continue Reading

MiFIR Delegated Regulations Published in Official Journal of the EU

Posted in Derivatives, EU Developments, Financial Markets
On November 21, 2016, three delegated regulations (together, Delegated Regulations) made under the Markets in Financial Instruments Regulation were published in the Official Journal of the EU. The Delegated Regulations are: Delegated Regulation (EU) 2016/2020 on the criteria for determining whether derivatives subject to the clearing obligation should be subject to the trading obligation, available… Continue Reading

UK Government Must Consult Parliament Before Triggering Withdrawal From European Union, Court Rules

Posted in Brexit/UK Developments
On November 3, a three-member panel of the High Court of Justice’s Queen’s Bench Division ruled that government ministers do not have the unfettered right to trigger the United Kingdom’s withdrawal from the European Union by submitting notice under Article 50 of the Treaty on European Union. In a strongly worded opinion citing English case… Continue Reading