Corporate & Financial Weekly Digest

Corporate & Financial Weekly Digest

Category Archives: Financial Markets

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FCA Revises List of MiFID II Position Limits

Posted in Derivatives, Financial Markets, UK Developments
The UK Financial Conduct Authority (FCA) has reviewed the bespoke position limits set for a number of commodity derivatives traded on UK venues. Following its review and as a result of strong growth in some commodity derivative contracts, the FCA has increased the limits of approximately 20 commodity derivative contracts as of February 8.… Continue Reading

FCA and ICO Publish Joint Update on GDPR

Posted in Financial Markets, UK Developments
On February 8, the UK Financial Conduct Authority (FCA) and the UK Information Commissioner’s Office (ICO) published a joint statement on the EU General Data Protection Regulation (GDPR). GDPR will go into effect in the UK on May 25. The GDPR is designed to strengthen the rules governing data protection across the European Union and… 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

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

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

FCA Publishes Issue 55 of Market Watch Newsletter

Posted in Derivatives, Financial Markets, UK Developments
On December 12, the UK Financial Conduct Authority (FCA) published issue 55 of Market Watch, its newsletter on market conduct and transaction reporting issues. Similar to Issue 54 of Market Watch (reported in the Corporate & Financial Weekly Digest edition of November 10, 2017), Issue 55 contains articles of relevance to the implementation of the… Continue Reading

FCA Consults on Transitioning Firms and Individuals to SM&CR

Posted in Financial Markets, UK Developments
On December 13, the UK Financial Conduct Authority (FCA) published three consultation papers (CPs) on the transition from its existing Approved Persons Regime (APR) to the new Senior Managers and Certification Regime (SM&CR). The CPs follow the FCA’s July 2017 consultation papers, which consulted on extending the SM&CR regime to all regulated firms (including both… Continue Reading

FCA Publishes “Dear CEO” Letter on Payment for Order Flow

Posted in Financial Markets, UK Developments
On December 13, the UK Financial Conduct Authority (FCA) published a “Dear CEO” letter expressing its concerns over the practice of brokers demanding payments from counterparties in exchange for conducting client business with them, also known as payment for order flow (PFOF). The letter follows the FCA’s September 2016 update, published in their Market Watch… Continue Reading

ESMA Provides Update on MiFID II Registers

Posted in EU Developments, Financial Markets
On December 8, the European Securities and Markets Authority (ESMA) published a press release confirming that it will provide updated registers in line with the revised Markets in Financial Instruments Directive (MiFID II) and the Markets in Financial Instruments Regulation (MiFIR). On January 3, 2018, the effective date of MiFID II and MiFIR, ESMA will… Continue Reading

European Commission Implementing Decisions Recognizing Certain Third-Country Equities Markets Under MiFID II Published in OJ

Posted in EU Developments, Financial Markets
On December 14, the following decisions (Implementing Decisions) on the equivalence of the legal and supervisory frameworks of certain third countries, in accordance with Article 25(4)(a) of the revised Markets in Financial Instruments Directive (MiFID II), were published in the Official Journal of the EU (OJ): European Commission Implementing Decision ((EU) 2017/2318) on the equivalence of… Continue Reading

Delegated Regulation Amending MiFID II Definition of Systematic Internalizer Published in OJ

Posted in EU Developments, Financial Markets
On December 13, as reported in the Corporate & Financial Weekly Digest edition for September 1, 2017, Delegated Regulation (EU) 2017/2294 amending Delegated Regulation (EU) 2017/565 as regards the specification of the definition of systematic internalizers for the purposes of the revised Markets in Financial Instruments Directive (Delegated Regulation), was published in the Official Journal… Continue Reading

ESMA Publishes New/Updated Q&As on MiFID II, Commodity Derivatives, EMIR and MAR

Posted in EU Developments, Financial Markets
On December 14 and 15, the European Securities and Markets Authority (ESMA) published a number of new and updated question and answer documents (Q&As) relating to, among other things, the revised Markets in Financial Instruments Directive (MiFID II) and the Markets in Financial Instruments Regulation (MiFIR). The Q&As relate to the following topics: MiFID II… Continue Reading

FCA’s Changes to Connect Impact MiFID Passport Notifications

Posted in Financial Markets, UK Developments
On December 4, the UK Financial Conduct Authority (FCA) announced changes, effective from the same date, to Connect, its online system that is used by firms to make various applications and notifications to the FCA. The changes reflect the revised Markets in Financial Instruments Directive legal framework (MiFID II), in anticipation of the implementation of… Continue Reading