On October 11, the Securities and Exchange Commission demonstrated renewed interest in completing the regulatory regime for security-based swaps (SBS) by re-opening the comment periods for a number of SBS rules that were previously proposed but never adopted. Specifically, the SEC is requesting further comment on the following proposals: Continue Reading
On October 12, the UK Financial Conduct Authority (FCA) published a consultation paper (October Consultation Paper) setting out its proposals to amend the Decision Procedure and Penalties (DEPP) manual and Enforcement Guide (EG) of the FCA Handbook. The FCA explains that the amendments are needed because of the changes introduced by the statutory instrument (SI), which will be given to the UK Parliament by HM Treasury, implementing the EU Securitization Regulation (SR) that goes into effect on January 1, 2019.
The October Consultation Paper should be read alongside the FCA’s consultation paper that it published on August 1 (August Consultation Paper), which sets out other changes that will be needed to the FCA Handbook to implement the SR. Continue Reading
On October 15, the UK Financial Conduct Authority (FCA) published a discussion paper (Discussion Paper) on climate change and green finance. On the same day, the UK Prudential Regulation Authority (PRA) published a consultation paper (Consultation Paper) on a draft supervisory statement (Draft Supervisory Statement) on enhancing the approach of banks and insurers to managing the financial risks from climate change. Continue Reading
On October 12, the UK Department for Business, Energy and Industrial Strategy (BEIS) published two guidance notes relating to trading in energy should the UK leave the EU without agreement (No-Deal Brexit). One guidance note focuses on gas and the other relates to electricity.
The guidance notes are part of a series of technical notices that aim to provide information to UK businesses and citizens on how to prepare for a No-Deal Brexit. This describes the situation in which the UK and the EU fail to conclude a draft withdrawal agreement by the time of the UK’s exit from the EU on March 29, 2019, and would mean that there would be no implementation period—currently intended to run from March 30, 2019 to December 31, 2020. Continue Reading
On October 9, the Commodity Futures Trading Commission approved proposed rules intended to simplify regulations for commodity pool operators (CPOs) and commodity trading advisors (CTAs) generally by codifying existing staff advisory and no-action letter relief and streamlining registration requirements for CPOs that operate in multiple jurisdictions. Continue Reading
On October 11, the National Futures Association (NFA) issued a notice to its members that amendments to NFA Bylaw 1303 take effect on October 31.
NFA Bylaw 1303 allows the NFA to deem an NFA member’s failure to pay certain fees as a request for withdrawal from NFA membership. Bylaw 1303 will be deemed amended, effective as of October 31, to specify that failure to pay fees related to NFA Financial Requirements Section 10 (Late Financial Reports), NFA Financial Requirements Section 13 (Forex Dealer Member Reports), NFA Compliance Rule 2-46 (CPO and CTA Quarterly Reporting Requirements) and NFA Compliance Rule 2-48 (Forex Dealer Daily Trade Data Reports) will each result in a withdrawal of NFA membership. The amendments also make consistent the time periods upon which withdrawals under Bylaw 1303 are effective.
Bylaw 1303 and the amendments are available here.
On October 5, HM Treasury published two draft statutory instruments (SIs) together with explanatory notes, which will make amendments to retained EU law relating to the revised Markets in Financial Instruments Directive (MiFID II) and Trade Repositories (TRs). Continue Reading
On October 10, the UK Financial Conduct Authority (FCA) published two consultation papers relating to the United Kingdom’s withdrawal from the European Union (Brexit). The first, CP18/28, is the FCA’s first consultation paper on proposed changes to the FCA Handbook and to binding technical standards (BTS) resulting from Brexit. The second, CP18/29, focuses on the temporary permissions regime for inbound firms and funds. The temporary permissions regime will allow EU firms and funds to continue regulated business in the United Kingdom, if the United Kingdom leaves the European Union in March 2019 without an implementation period in place (for further details, see the July 27 edition of Corporate & Financial Weekly Digest). Continue Reading
On October 8, HM Treasury published two draft statutory instruments (SIs), together with explanatory notes, which will make amendments to retained EU law relating to collective investment schemes (CIS) and alternative investment fund managers (AIFMs). Continue Reading
On October 2, the European Securities and Markets Authority (ESMA) published an updated version of its question and answer document (Q&A) on commodity derivatives topics under the revised Markets in Financial Instruments Directive (MiFID II) and the related Markets in Financial Instruments Regulation (MiFIR).
The update includes two new answers. The first relates to position limits and clarifies that position limits apply to contracts entered into prior to January 3, 2018, while the second relates to position reporting. The Q&A also features three modified questions in relation to ancillary activities.
The updated Q&A is available here.