Corporate & Financial Weekly Digest

Corporate & Financial Weekly Digest

Category Archives: Financial Markets

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FCA Publishes “Dear CEO” Letter on Cryptoassets and Financial Crime

Posted in Digital Assets and Virtual Currencies, Financial Markets, UK Developments
The UK Financial Conduct Authority (FCA) has published a “Dear CEO” letter dated June 11, on cryptoassets and financial crime. The purpose is to ensure that banks adequately manage the financial crime risks associated with cryptoassets. The FCA defines cryptoassets as any publicly available medium of exchange that features a distributed ledger and a decentralized… Continue Reading

ESMA Releases Latest Double Volume Cap Data Under MiFID II

Posted in EU Developments, Financial Markets
On June 7, the European Securities and Markets Authority (ESMA) updated its public register with the latest set of double volume cap (DVC) data under the revised Markets in Financial Instruments Directive (MiFID II). The update follows last month’s update to the DVC public register (for more information, see the May 11, 2018 edition of… Continue Reading

European Parliament Adopts EMIR 2.1 Proposal

Posted in Derivatives, EU Developments, Financial Markets
On June 12, the European Parliament (EP) issued a press release announcing its adoption in plenary of the proposed regulation to amend the European Market Infrastructure Regulation (EMIR) in respect of, among others, clearing, reporting and risk-mitigation techniques for over-the-counter derivatives contracts not cleared by a central counterparty (CCP).… Continue Reading

FIA Publishes Report on Clearing Members’ Brexit Implementation Plans

Posted in Brexit, EU Developments, Financial Markets
On June 5, the Futures Industry Association (FIA) published a report summarizing the responses to its latest survey and setting out its recommendations to United Kingdom (UK) and European Union (EU) policymakers. The survey concerns Brexit implementation plans for the client clearing businesses of FIA members.… Continue Reading

ECON Publishes Report on EMIR 2.2

Posted in EU Developments, Financial Markets
On May 25, the European Parliament’s Economic and Monetary Affairs Committee (ECON) published a report on the proposal for a regulation amending the European Securities and Markets Authority (ESMA) Regulation, and the European Market Infrastructure Regulation (EMIR) in relation to the authorization of central counterparties (CCPs) and recognition of third-country CCPs (EMIR 2.2).… Continue Reading

ESMA Guidelines on EMIR Anti-Procyclicality Margin Measures for CCPs

Posted in EU Developments, Financial Markets
On May 28, the European Securities and Markets Authority (ESMA) published its final report with guidelines on the European Market Infrastructure Regulation (EMIR) anti-procyclicality margin measures for central counterparties (CCPs). The guidelines aim to establish consistent, efficient and effective supervisory practices and to ensure a common, uniform and consistent application of EMIR in order to… Continue Reading

MiFID II/MiFIR Q&As Updated and Guidelines Published on MiFID II Suitability Requirements

Posted in EU Developments, Financial Markets
The European Securities and Markets Authority (ESMA) recently updated its questions and answers on the following topics: On May 29, the revised Markets in Financial Instruments Directive (MiFID II) Q&As on transparency and market structures topics (available here and here, respectively one for transparency and one for market structures). Among other things, ESMA clarifies how… Continue Reading

MiFID II/MiFIR Q&A Updates Concerning Best Execution and Client Categorization

Posted in EU Developments, Financial Markets
On May 25, the European Securities and Markets Authority (ESMA) updated its questions and answers on the revised Markets in Financial Instruments Directive (MiFID II) and Markets in Financial Instruments Regulation (MiFIR) investor protection and intermediaries topics, with nine new or updated Q&As.… Continue Reading

FCA Publishes Findings From Its Review of Automated Investment Services

Posted in Financial Markets, UK Developments
On May 21, the UK Financial Conduct Authority (FCA) published a webpage on its findings from its review of firms offering automated investment services. The aim of the review was to monitor developments in financial innovation to help inform the FCA’s regulatory strategy, as set out in its 2017/18 Business Plan. The FCA reviewed the… Continue Reading

ESMA Publishes Opinion on Position Limits on ICE Low Sulphur Gasoil 1st Line Contracts

Posted in EU Developments, Financial Markets
On May 15, the European Securities and Markets Authority (ESMA) published an opinion on position limits proposed by the UK Financial Conduct Authority (FCA) in respect of ICE Low Sulphur Gasoil 1st Line Future and Option contracts. ESMA found that the contracts are consistent with the objectives established in the revised Markets in Financial Instruments… Continue Reading

Legal Entity Identifier Regulatory Oversight Committee Issues Second Progress Report

Posted in EU Developments, Financial Markets
On May 2, the Legal Entity Identifier Regulatory Oversight Committee (LEI ROC) published its second progress report, which included an overview of the Global Legal Entity Identifier System (GLEIS), regulatory uses of the LEI and LEI ROC’s activities. The LEI ROC’s first progress report was published on November 5, 2015.… Continue Reading

ECB Publishes Article on Impact of Brexit Transition Period

Posted in Brexit, EU Developments, Financial Markets
On May 16, the European Central Bank (ECB) published an article on the impact of a potential Brexit transition period (for more information on the proposed transition period, please see the Corporate & Financial Weekly Digest edition of March 23, 2018). In the article, the ECB sets out how the transition period affects its expectations… Continue Reading

Council of EU Adopts MLD5

Posted in EU Developments, Financial Markets
On May 14, the Council of the EU published a press release announcing that it has adopted the proposed Fifth Money Laundering Directive (MLD5). The introduction of MLD5 forms part of the European Commission’s action plan to counter terrorist financing and money laundering, published in February 2016 (further details are available in the Corporate & Financial… Continue Reading

UK Government Responds to Report on Brexit

Posted in Brexit/UK Developments, Financial Markets
On May 9, the UK government published its response to the House of Lords European Union Committee’s report, entitled “Brexit: The Future of Financial Regulation and Supervision,” which was published on January 27. The Committee’s report includes recommendations under six categories, including: 1. Incorporating the EU acquis (being the accumulated legislation and court decisions) in… Continue Reading

ESMA Unveils One-Stop Company Portal for Information on EU Authorization

Posted in EU Developments, Financial Markets
On May 7, the European Securities and Markets Authority (ESMA) announced a new portal for investors seeking information on whether a financial services provider is authorized within the European Union. The portal includes registers of the following: Markets in Financial Instruments Directive (MiFID) investment firms, including systematic internalizers; MiFID trading venues; MiFID data reporting service… Continue Reading

ECB Speech on CCP Recovery and Resolution

Posted in EU Developments, Financial Markets
The Bank for International Settlements has published a speech, entitled “Resolution in Europe: The Unresolved Questions,” given by Benoît Cœuré, a member of the executive board of the European Central Bank (ECB), on April 23 in Frankfurt. The speech concerns a cooperative approach to central counterparty (CCP) recovery and resolution, and has three focuses: The… Continue Reading

ESMA Releases Latest Double Volume Cap Data Under MiFID II

Posted in EU Developments, Financial Markets
On May 8, the European Securities and Markets Authority (ESMA) updated its public register with the latest set of double volume cap (DVC) data under the revised Markets in Financial Instruments Directive (MiFID II). The update follows last month’s update to the DVC public register (for further details, see the April 13 edition of Corporate… Continue Reading

ESAs Publishes Consultation Papers Regarding Securitization Regulation

Posted in EU Developments, Financial Markets
The European Market Infrastructure Regulation (EMIR) imposes clearing and risk mitigation obligations on firms trading in the European Economic Area. On May 4, the Joint Committee of European Supervisory Authorities (ESAs) published two consultation papers in relation to the interaction of the Securitization Regulation (SR) with those obligations under EMIR, specifically: A consultation paper with… Continue Reading

ESMA Publishes First Liquidity Assessment for Bonds Subject to MiFID II Transparency Requirements

Posted in EU Developments, Financial Markets
On May 2, the European Securities and Markets Authority (ESMA) published its first liquidity assessment for bonds that are subject to the pre- and post-trade requirements of the revised Markets in Financial Instruments Directive (MiFID II) and the Markets in Financial Instruments Regulation.… Continue Reading

US and UK Announce New Financial Regulatory Working Group

Posted in Brexit, Brexit/UK Developments, Financial Markets, UK Developments
On April 19, HM Treasury and the US Treasury Department published a joint statement announcing the formation of a US-UK Financial Regulatory Working Group (Working Group). The joint statement explains that Brexit provides an opportunity for the Working Group to formalize existing US-UK regulatory cooperation. The Working Group will include staff from the respective treasury… Continue Reading