Corporate & Financial Weekly Digest

Corporate & Financial Weekly Digest

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BoE and ESMA Agree No-Deal MoUs on Recognition of UK CCPs and CSDs

Posted in Brexit, EU Developments, Financial Markets

On February 4, the European Securities and Markets Authority (ESMA) and the Bank of England announced that they have agreed on Memorandums of Understanding (MoUs) surrounding the cooperation and information-sharing arrangements with respect to UK-based central counterparties (CCPs) and central securities depositories (CSDs) in the event of the United Kingdom’s exit from the European Union… Continue Reading

Bank of England and FCA Provide Updates on Post-Brexit Market Infrastructure Transitional Arrangements and Applications

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

On January 24, the Bank of England updated its financial market infrastructure supervision websites with interim lists of entities and systems that will enter into the various temporary or transitional arrangements on exit day should the United Kingdom leave the European Union with no implementation period. The lists consist of: Third-country central counterparties (CCPs) that… Continue Reading

ESMA Publishes Statement on Clearing and Trading Obligations for Small Financial Counterparties

Posted in EU Developments, Financial Markets

On January 31, the European Securities and Markets Authority (ESMA) published a statement addressing issues on the forthcoming implementation of the European Market Infrastructure Regulation Regulatory Fitness and Performance program (EMIR REFIT), relating to clearing and trading obligations for small financial counterparties. ESMA’s statement also addresses the requirements for reporting of derivatives that were outstanding… Continue Reading

European Commission Reported to Grant Temporary Access to UK Clearing Houses

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

On December 12, it was reported that the European Commission (EC) intends to grant temporary and conditional equivalence status to UK central counterparties (CCPs) under the European Market Infrastructure Regulation (EMIR) in the event of the United Kingdom withdrawing from the European Union (Brexit) without concluding a withdrawal agreement (“no-deal Brexit”).… Continue Reading

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… Continue Reading

HM Treasury Publishes Draft Brexit Statutory Instrument Relating to EMIR

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

On October 22, HM Treasury published the Over the Counter Derivatives, Central Counterparties and Trade Repositories (Amendment, etc., and Transitional Provision) (EU Exit) Regulations 2018 (Draft EMIR (Brexit) SI), a draft statutory instrument (SI) relating to the European Market Infrastructure Regulation (EMIR). It also has published a supporting explanatory memorandum.… Continue Reading

CFTC Releases White Paper Addressing Cross-Border Swaps Regulation

Posted in CFTC

On October 1, Commodity Futures Trading Commission Chairman J. Christopher Giancarlo released a white paper addressing the regulation of cross-border swaps. The white paper, titled “Cross-Border Swaps Regulation Version 2.0: A Risk-Based Approach with Deference to Comparable Non-U.S. Regulation,” sets forth various proposed changes to the CFTC’s current cross-border approach.… Continue Reading

CFTC and Australian Securities Regulator Sign FinTech Cooperation Agreement

Posted in CFTC

The Commodity Futures Trading Commission and the Australian Securities and Investments Commission (ASIC) have entered into a cooperation arrangement on financial technology innovation. The arrangement is intended to facilitate cooperation and the sharing of information between the CFTC and ASIC relating to financial technology and the use of technology for purposes of regulation and oversight… Continue Reading

HM Treasury Publishes Draft EMIR SI Relating to Non-UK CCPs Post-Brexit

Posted in Brexit, Financial Markets, UK Developments

HM Treasury published a draft statutory instrument (SI) under the European Market Infrastructure Regulation (EMIR) relating to non-UK central counterparties (CCPs) after the United Kingdom’s withdrawal from the European Union (exit day). It has also published a supporting explanatory memorandum.… Continue Reading

ESMA Updates Q&As Relating to EMIR and MiFIR

Posted in Derivatives, EU Developments, Financial Markets

On September 26, the European Securities and Markets Authority (ESMA) published updates to two of its sets of question and answer documents (Q&As): (1) Q&As relating to the implementation of the European Market Infrastructure Regulation (EMIR); and (2) those relating to data reporting under the Markets in Financial Instruments Regulation (MiFIR).… 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

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

ECON-AFCO Publish Draft Report on Granting ECB Power to Compel CCPs to Locate in the Eurozone

Posted in Brexit, EU Developments, Financial Markets

On April 19 the European Parliament’s Economic and Monetary Affairs Committee (ECON) and Committee on Constitutional Affairs (AFCO) published a draft report (dated April 13) concerning a proposal for an amendment of the Statute of the European System of Central Banks and the European Central Bank (ECB) (the Statute), enhancing the ECB’s powers over central… Continue Reading

IOSCO Produces CCP Stress Test Framework

Posted in EU Developments

On April 10, the International Organization of Securities Commissions (IOSCO), in conjunction with the Bank for International Settlements’ (BIS) Committee on Payments and Market Infrastructures, published a framework for supervisory stress testing of central counterparties (CCPs) in a single jurisdiction or across multiple jurisdictions. The framework’s focus is stated to be the evaluation of “broad,… Continue Reading

ESMA Publishes List of Trading Venues and CCPs Benefitting From a Transitional Exemption From the Access Provisions of MiFIR

Posted in EU Developments, Financial Markets

On March 26, the European Securities and Markets Authority (ESMA) published a list of the trading venues and central counterparties (CCPs) benefitting from a temporary exemption from the access provisions set out in Articles 35 and 36 of the Markets in Financial Instruments Regulation (MiFIR). CCPs and trading venues had until January 3 to apply… 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

Three of Europe’s Biggest Exchange Groups are Granted Last-Minute Reprieve From MiFIR “Open Access” Rules for Exchange-Traded Derivatives

Posted in EU Developments

On January 2 and 3, the German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht or BaFin) and the UK Financial Conduct Authority (FCA) granted, respectively, last-minute delays to Europe’s largest futures exchanges in implementing part of the Markets in Financial Instruments Regulation (MiFIR).… Continue Reading

ESMA Publishes Further Guidance on Open Access Transitional Periods

Posted in EU Developments

The Markets in Financial Instruments Regulation (MiFIR) provides for a new “open access” regime between trading venues and central counterparties (CCPs) whereby, subject to meeting certain enumerated conditions, a trading venue may request that a CCP clear trades executed on its platform, and a CCP may request that a trading venue route trades to it… Continue Reading

Market Risk Advisory Committee to Host Public Meeting

Posted in CFTC

On June 20, the Commodity Futures Trading Commission Market Risk Advisory Committee will hold a meeting at the CFTC’s headquarters in Washington, DC. CFTC Commissioner Sharon Bowen is the committee’s sponsor. Items on the meeting agenda include: (1) a presentation by the CFTC’s Division of Clearing and Risk on how it conducts risk surveillance of… Continue Reading

FIA Publishes Letter Opposing Relocation of Euro-Denominated Derivatives Clearing

Posted in Brexit, Derivatives, EU Developments, Financial Markets

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… Continue Reading

CPMI and IOSCO Publish Report on CCP Resiliency Planning

Posted in CFTC

The Committee on Payments and Market Infrastructures (CPMI) and the Board of the International Organization of Securities Commissions (IOSCO) published a report entitled Resilience and recovery of central counterparties (CCPs): Further guidance on the PFMI (Report), which seeks to clarify how CCPs should implement the CPMI-IOSCO Principles for Financial Market Infrastructures (PFMI). The PFMI strengthen… Continue Reading