Corporate & Financial Weekly Digest

Corporate & Financial Weekly Digest

EU Council Agrees to Approach on EMIR 2.2

Posted in EU Developments, Financial Markets

On December 3, , the EU Permanent Representatives Committee (COREPER) endorsed the EU Council’s general approach on a revision of the European Market Infrastructure Regulation (EMIR 2.2), as well as a decision on a revision to the statute of the EU system of central banks and the European Central Bank (ECB), specifically taking into account the effects of the United Kingdom’s withdrawal from the European Union on the EU financial system. Continue Reading

LMA Publishes Paper on Impact of a No-Deal Brexit on the European Loan Market

Posted in Brexit, EU Developments, Financial Markets

On December 3, the Loan Market Association (LMA) published a paper on the consequences of a scenario in which the United Kingdom withdraws from the European Union (Brexit) without concluding a withdrawal agreement, commonly referred to as a “no-deal Brexit.” The paper focuses on the impact of a no-deal Brexit on lending by UK lenders to borrowers located in the remaining 27 member states of the European Union (EU27), and the wider negative impact on the EU economy. Continue Reading

Register for Our 2019 Proxy Season Update Webinar

Posted in SEC/Corporate

On Thursday, December 13 at 12:00 p.m. (CT), please join Katten Muchin Rosenman LLP, Ernst & Young LLP and Meridian Compensation Partners for a webinar discussion of key developments and trends impacting public companies in the 2019 annual reporting and proxy season.

Further details are available here; click here to register.

CFTC’s LabCFTC Releases Primer on Smart Contracts

Posted in CFTC

On November 27, the Commodity Futures Trading Commission’s LabCFTC released “A CFTC Primer on Smart Contracts” to provide information on a variety of financial technology (FinTech) topics. LabCFTC is a hub designed for the CFTC to engage with the FinTech community.

The primer defines a “smart contract” as “a set of coded computer functions” that may or may not be a binding contractual agreement. Among other attributes, smart contracts can authenticate the identities of parties (and contra-parties), access data to trigger actions based on external stimuli (delivery of an asset, weather conditions, change in a reference rate, etc.), and automate the execution process. The primer also delves into the challenges and risks of smart contracts, as well as the potentially applicable legal frameworks.

More information on the primer is available here.


CFTC Announces Agenda for Market Risk Advisory Committee Public Meeting

Posted in CFTC

The Commodity Futures Trading Commission has announced that its Market Risk Advisory Committee will hold a meeting on December 4. The meeting will be held at CFTC’s headquarters in Washington, DC beginning at 9:30 a.m. and is open to the public.

The Committee will receive a report from the Interest Rate Benchmark Reform Subcommittee, followed by panels that will consider (1) clearinghouse risk management and governance; (2) non-default losses in recovery and resolution; (3) central counterparty resolution, the leverage ratio and incentives to clear; and (4) oversight of third-party service providers and vendor risk management.

The full agenda is available here.


CFTC Approves a Final Rule to Amend Uncleared Swap Margin Requirements

Posted in CFTC, Derivatives

On November 19, the Commodity Futures Trading Commission approved a final rule to amend its margin requirements for uncleared swaps for swap dealers and major swap participants for which there is no prudential regulator (CFTC Margin Rule). As a part of the Project KISS initiative, the amendments were designed to harmonize the CFTC Margin Rule with related rules that certain prudential regulators have adopted (QFC Rules). Continue Reading

Electronic Money, Payment Services and Payment Systems Regulations 2018 Published

Posted in Brexit, Brexit/UK Developments, Financial Markets, UK Developments

On November 20, the Electronic Money, Payment Services and Payment Systems (Amendment and Transitional Provisions) (EU Exit) Regulations 2018 (Regulations) were published with an associated explanatory memorandum.

The Regulations make amendments to the Payment Services Regulations 2017 (PSRs) and the Electronic Money Regulations 2011 (EMRs), to ensure that the UK payments and electronic money (e-money) regime continues to operate effectively in the United Kingdom after its withdrawal from the European Union (Brexit) on March 29, 2019 (Exit Day). Continue Reading

LEI ROC Consults on Fund Relationships in GLEIS

Posted in EU Developments, Financial Markets

On November 19, the Legal Entity Identifier Regulatory Oversight Committee (LEI ROC) published its second consultation paper on fund relationships in the Global Legal Entity Identifier System (GLEIS).

In its second consultation paper, LEI ROC explains that a significant proportion of entities that have a legal entity identifier (LEI) are investment funds. Consequently, LEI ROC proposes a limited update to the way relationships affecting funds are recorded in the GLEIS. The update aims to ensure that the implementation of relationship data is consistent throughout the GLEIS and to provide a means to facilitate a standardized collection of fund relationship information at the global level. Continue Reading

SEC Approves New Supplement to Options Disclosure Document

Posted in Broker-Dealer

On November 9, the Securities and Exchange Commission approved a new supplement (Supplement) to the Characteristics & Risks of Standardized Options, also known as the options disclosure document (ODD), published by the Options Clearing Corporation (OCC). The ODD provides general disclosures regarding the characteristics and risks of exchange traded options. Generally, broker-dealers must provide a customer with a copy of the ODD before accepting options orders from that customer. Continue Reading

SEC Amends Rules to Increase Order Handling Disclosure

Posted in Broker-Dealer

On November 2, the Securities and Exchange Commission adopted amendments to Rule 606 of Regulation NMS in order to require broker-dealers to provide certain individualized disclosures to customers with respect to the firm’s handling and execution of orders. This disclosure would only be required upon the request of a customer in connection with certain orders that grant discretion to the firm with respect to the price and time of execution.

The SEC also adopted amendments to the order routing disclosures that broker-dealers are required to make public on a quarterly basis. The amendments increase certain targeted disclosure requirements.

More information is available here.