Corporate & Financial Weekly Digest

Corporate & Financial Weekly Digest

Category Archives: EU Developments

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European Commission Publishes Survey About the Functioning of the AIFMD

Posted in EU Developments
On February 8, the European Commission published an online survey about the functioning of the Alternative Investment Fund Managers Directive (AIFMD). Article 69(1) of the AIFMD requires the EC to have commenced by July 22, 2017, its review of the AIFMD’s scope and application. However, the review process has started late due to the EC’s… Continue Reading

Warning to Consumers on Virtual Currency Risks Issued by EBA, EIOPA and ESMA

Posted in EU Developments
On February 12, the European Banking Authority (EBA), the European Insurance and Occupational Pensions Authority (EIOPA) and the European Securities and Markets Authority (ESMA) (collectively the three European Supervisory Authorities (three ESAs)) published a joint warning to consumers relating to the high risks of buying and/or holding virtual currencies (such as Bitcoin, Ether and Ripple).… Continue Reading

FCA Provides Update on EMIR United States Equivalence Decision and Intragroup Exemptions

Posted in EU Developments
On February 12, the United Kingdom Financial Conduct Authority (FCA) updated its webpage on the European Market Infrastructure Regulation (EMIR), about the equivalence decision for derivative transactions in the United States  adopted by the European Commission on October 13, 2017. The equivalence decision determined that the rules promulgated by the Commodity Futures Trading Commission on… Continue Reading

ESMA Publishes Updated Version of Its Q&As on Short Selling Regulation

Posted in EU Developments, Financial Markets
On February 5, the European Securities and Markets Authority (ESMA) updated its set of Questions and Answers (Q&As) on the implementation of Regulation (EU) 236/2012 (the Short Selling Regulation). The aim of the Q&As is to promote common supervisory approaches and practices in the application of the Short Selling Regulation by regulators across the European… Continue Reading

Draft Report on Proposed EMIR REFIT Regulation Published By The European Parliament’s Economic and Monetary Affairs Committee

Posted in EU Developments
On January 30, the European Parliament’s Economic and Monetary Affairs Committee (ECON) published its draft report (Draft Report), dated January 26, on the proposal for a regulation (EMIR REFIT Regulation) to amend the European Market Infrastructure Regulation (EMIR).… Continue Reading

FCA Transaction Reporting Instrument Reference Data Errors and Omissions Form Now Available

Posted in EU Developments, Financial Markets, UK Developments
On January 11, the UK Financial Conduct Authority (FCA) updated its webpage on instrument reference data to make available a new instrument reference data errors and omissions form for trading venues or systematic internalizers (SIs) to complete if their instrument reference data is incomplete or inaccurate.… Continue Reading

ESAs Publish Final Report Aiming to Align Variation Margin Rules for FX Forwards With Supervisory Guidance in Other Key Jurisdictions

Posted in Derivatives, EU Developments
On December 18, 2017, the European Supervisory Authorities (ESAs) published a final report aiming to align the treatment of variation margin for physically settled foreign exchange forward transactions (FX Forwards) with supervisory guidance applicable in other key jurisdictions. The amended draft variation margin regulatory technical standards on risk mitigation techniques for over-the-counter (OTC) derivatives not… Continue Reading

FCA Publishes Guidance and Updated Forms and Webpages Reflecting MiFID II Implementation

Posted in EU Developments, Financial Markets, UK Developments
On January 3, the UK Financial Conduct Authority (FCA) published a document containing general guidance on the authorization process, forms and prudential categories following the FCA’s implementation of the revised Markets in Financial Instruments Directive (MiFID II). The document provides guidance on applications for authorization as a MiFID investment firm made by a first-time applicant… Continue Reading

Implementation of MiFID II Still Incomplete Across Europe

Posted in Brexit, EU Developments, Financial Markets
Further updating the Corporate &Financial Weekly Digest edition of December 8, 2017, as of January 8, there were still only 14 European Union (EU) Member States (i.e., only 50 percent of the EU) that have fully transposed the revised Markets in Financial Instruments Directive (MiFID II) into their national law (as reported on the European… Continue Reading

Chief Brexit Negotiators Discuss Post-Brexit Treatment of UK Financial Regulations

Posted in Brexit, Brexit/UK Developments, EU Developments, Financial Markets
On January 9, Michel Barnier, the European Union’s (EU’s) chief Brexit negotiator, delivered a speech at the “Trends Manager of the Year 2017” event in Brussels, and on January 10, the UK’s Chancellor of the Exchequer, Philip Hammond, and the UK’s Secretary of State for Exiting the EU, David Davis, published a joint article that… Continue Reading

ISDA Announces Plans for French and Irish Law Governed Master Agreements After Brexit

Posted in Brexit, Derivatives, EU Developments, Financial Markets
On January 8, the International Swaps and Derivatives Association, Inc. (ISDA) published a blog post providing insight into how it is preparing for the UK’s departure from the European Union and how this will impact the use of the industry-standard ISDA Master Agreement.… Continue Reading

ESMA Consults on Guidelines on Anti-Procyclicality Margin Measures for CCPs

Posted in EU Developments, Financial Markets
On January 8, the European Securities and Markets Authority (ESMA) published a consultation paper on draft guidelines on anti-procyclicality margin measures for central counterparties (CCPs). The European Market Infrastructure Regulation (EMIR) recognizes that margin calls and haircuts on collateral by CCPs may have procyclical effects. EMIR therefore requires CCPs to regularly monitor and, if necessary,… Continue Reading

ESMA Delays Publication of Data on Double Volume Cap Mechanism Under MiFID II

Posted in EU Developments, Financial Markets
On January 9, the European Securities and Markets Authority (ESMA) published a press release announcing that it has decided to delay the publication of data on the double volume cap (DVC) mechanism as required under the revised Markets in Financial Instruments Directive (MiFID II) and the Markets in Financial Instruments Regulation (MiFIR).… Continue Reading

FCA “Dear CEO” Letter to CFD Providers and Distributors Highlights Concerns Following Review of CFD Market

Posted in EU Developments, Financial Markets
  On January 10, the UK Financial Conduct Authority (FCA) published a “Dear CEO” letter that it has sent to providers and distributors of contract for difference (CFD) products to retail customers. The letter reminds firms that CFDs are high-risk, complex financial products and refers to the FCA’s recent review of the CFD market. During… Continue Reading

UK Government Plans To Ensure Continuity in Financial Services in the Event of No Deal With the EU

Posted in EU Developments
On December 20, 2017, Philip Hammond, the UK Chancellor of the Exchequer, made a written statement in the UK House of Commons on behalf of Her Majesty’s Treasury (HM Treasury) announcing the Bank of England’s (BoE) plans to ensure continuity in financial services in the unlikely event of an agreement not being reached with the… Continue Reading

ESMA Publishes Consultation Papers on Draft Technical Standards Implementing the Securitisation Regulation

Posted in EU Developments
On December 19, 2017, the European Securities and Markets Authority (ESMA) published three consultation papers on draft technical standards implementing the Securitisation Regulation (SR). The SR lays down common rules on securitization and creates a European framework for simple, transparent and standardized (STS) securitization.… Continue Reading

European Commission Adopts Implementing Decision on the Equivalence of Swiss Stock Exchanges Under MiFID II

Posted in EU Developments
On December 21, 2017, the European Commission (EC) adopted an Implementing Decision  on the equivalence of the legal and supervisory framework applicable to Swiss stock exchanges in accordance with the revised Markets in Financial Instruments Directive (MiFID II). The Implementing Decision together with an Annex was then published in the Official Journal of the EU… Continue Reading

ESMA Publishes Final Report and Technical Advice on the Evaluation of Certain Elements of the Short Selling Regulation

Posted in EU Developments
On December 21, 2017, the European Securities and Markets Authority (ESMA) published a final report containing technical advice to the European Commission (EC) on the evaluation of certain elements of the Short Selling Regulation (SSR) that became effective on November 1, 2012.… Continue Reading

Three of Europe’s Biggest Exchange Groups are Granted Last-Minute Reprieve From MiFIR “Open Access” Rules for Exchange-Traded Derivatives

Posted in EU Developments
On January 2 and 3, the German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht or BaFin) and the UK Financial Conduct Authority (FCA) granted, respectively, last-minute delays to Europe’s largest futures exchanges in implementing part of the Markets in Financial Instruments Regulation (MiFIR).… Continue Reading