On January 18, the UK’s Financial Conduct Authority (FCA) published a statement reminding UK-authorized firms of their obligations to periodically review their regulatory permissions under Part 4A of the Financial Services and Markets Act 2000 to ensure they are up-to-date or otherwise removed where they are not needed (the Statement).
Continue Reading FCA Reminds UK Firms to Regularly Review Their Regulatory Permission

On January 13, the European Securities and Markets Authority (ESMA) published a statement reminding firms of the requirements under the Markets in Financial Instruments Directive (MiFID II) relating to the provision of investment services to retail or professional clients by firms not established or situated in the EU (the Statement).
Continue Reading ESMA Reminds Firms of MiFID II Rules on Reverse Solicitation Post-Brexit

On December 30, 2020, HM Treasury (HMT) announced that the open access regime for exchange-traded derivatives (ETDs) introduced by the Markets in Financial Instruments Regulation (MiFIR) will continue to apply in the United Kingdom following the end of the transition period on December 31, 2020.
Continue Reading HMT Announces Open Access Regime for Exchange Traded Derivatives

On December 31, 2020, the UK’s Financial Conduct Authority (FCA) published a statement on the use of temporary transitional power (TTP) to modify the UK’s derivatives trading obligation (DTO). The TTP will be implemented on December 31, 2020 at 11:00 p.m. UK time (the Statement).
Continue Reading FCA Publishes Statement on Use of TTP to Modify UK Derivatives Trading Obligation

On December 18, 2020, the European Securities and Markets Authority (ESMA) published a consultation paper to assist the European Commission (Commission) in reviewing and producing a report on the impact of requirements relating to algorithmic trading, including high-frequency trading.
Continue Reading ESMA Publishes Consultation Paper on Impact of Algorithmic Trading

On December 14, the UK’s Financial Conduct Authority (FCA) published its first consultation paper on the implementation of the Investment Firms Prudential Regime (IFPR) (CP20/24) with its proposal for the UK’s new regulatory capital/ prudential rules following the end of the Brexit transition period (the Consultation Paper).

The FCA intends to create a new Prudential sourcebook for Markets in Financial Instruments Directive (MiFID) Investment Firms (MIFIDPRU).
Continue Reading UK Regulatory Capital/Prudential Rules: FCA Publishes First Consultation on Implementation of IFPR

On December 15, the UK’s HM Treasury published a call for evidence on the UK framework for financial services firms based overseas that are seeking to conduct activities in the UK.

The purpose of the call for evidence is to obtain information about how the existing UK rules work in practice. HM Treasury intends to use this information to develop the UK’s regulatory framework following the end of the Brexit transition period.
Continue Reading HM Treasury Call For Evidence on UK Overseas Framework and Overseas Persons Exclusion Post-Brexit

On December 15, the UK’s HM Treasury announced its intention to enact a statutory instrument under the UK’s retained version of the Short Selling Regulation (SSR), amending the initial notification threshold for the reporting of certain net short positions to the Financial Conduct Authority (FCA) (the Guidance).
Continue Reading HM Treasury Changes Notification Threshold Under UK Short Selling Regulation

On December 16, the European Securities and Markets Authority (ESMA) renewed its decision to temporarily require the holders of net short positions in shares traded on an EU regulated market to inform the relevant national competent authority (NCA) if the position reaches, exceeds or falls below 0.1 percent of the issued share capital. The measure applies starting December 19 for a period of three months (the Decision).
Continue Reading ESMA Renews 0.1 Percent Reporting Requirement Decision for Net Short Position Holders