On June 6, the Futures Industry Association (FIA) published a letter addressed to European Commission (EC) Vice–President Valdis Dombrovskis, detailing its concerns about the potential approach of forced relocation of euro-denominated derivatives clearing to the European Union. Forced relocation was raised as an option for ensuring the protection of the financial stability and monetary policy of the European Union in the EC’s May 2017 communication on certain challenges for critical financial market infrastructures and for further developing the Capital Markets Union.
Continue Reading FIA Publishes Letter Opposing Relocation of Euro-Denominated Derivatives Clearing

On May 29, the European Commission (EC) published two draft papers (Position Papers) setting out the position that it will take in negotiations with the United Kingdom relating to citizens’ rights (CR Paper) and the financial settlement to be reached with the United Kingdom (FS Paper).
Continue Reading European Commission Publishes Draft of EU Position Papers for Brexit Negotiations

On May 22, the European Securities and Markets Authority (ESMA) published an opinion regarding the implementation of the revised Markets in Financial Instruments Directive (MiFID II) and the Markets in Financial Instruments Regulation (MiFIR). The opinion clarifies the concept of “traded on a trading venue” (TOTV), which is relevant for a number of provisions under MiFID II and MiFIR,
Continue Reading ESMA Publishes Opinion on the Meaning of Traded on a Trading Venue

On April 29, a Special European Council, meeting as 27 member states (as opposed to the full 28 member states, as would usually be present), adopted the Article 50 guidelines (Guidelines) to formally define the EU’s position in Brexit negotiations with the United Kingdom. This follows the resolution of the European Parliament on key principles and conditions for the negotiations, adopted on April 5 (for further information, see the April 7 issue of Corporate & Financial Weekly Digest).
Continue Reading European Union Adopts Brexit Negotiation Guidelines

On May 4, the European Commission (EC) proposed reforms (Proposal) to the European Market Infrastructure Regulation (EMIR). The Proposal aims to provide simpler and more proportionate rules for over-the-counter (OTC) derivatives to reduce costs and regulatory burdens for market participants without compromising financial stability.
Continue Reading European Commission Proposes Reforms to EMIR

On April 18, UK Prime Minister Theresa May announced her intention for a general election to be held on June 8. The announcement came three weeks after the March 29 submission by the United Kingdom of the “Article 50” notice to begin exit negotiations from the European Union (for further information see the Corporate & Financial Weekly Digest edition of March 31, 2017).
Continue Reading UK Prime Minister Announces Snap General Election

On April 7, the Prudential Regulation Authority (PRA) published a copy of the “Dear CEO” letter it had sent to firms relating to contingency planning for the UK’s withdrawal from the European Union. The letter was sent by Sam Woods, chief executive officer of the PRA, in response to a speech by Mark Carney, governor of the Bank of England—also delivered on April 7—on the future of global financial services regulation (available here).
Continue Reading PRA Issues “Dear CEO” Letters on Brexit Contingency Planning

On April 5, the European Parliament (Parliament) announced that it has voted to adopt a resolution (Resolution) on negotiations with the United Kingdom, following its notification that it intends to withdraw from the European Union.
Continue Reading European Parliament Adopts Resolution on Brexit Negotiations With UK

On March 29, the United Kingdom submitted its “Article 50 Notice” to begin its departure from the European Union in the form of a letter (Notice) from Prime Minister Theresa May to EU Council President Donald Tusk. The Notice marks the formal start of a two-year process of negotiations to exit the European Union. If negotiations are not completed within that timeframe, it can only be extended by unanimous consent of all remaining member states.
Continue Reading UK Triggers Article 50; Great Repeal Bill White Paper Published