Corporate & Financial Weekly Digest

Corporate & Financial Weekly Digest

Tag Archives: EU Developments

Many EU Countries Have Not Yet Adopted MiFID II

Posted in EU Developments, Financial Markets
On December 5, Valdis Dombrovskis, the vice-president of the European Commission (EC), recognized that most European Union (EU) Member States have not yet fully adopted the provisions set out under the revised Markets in Financial Instruments Directive (MiFID II). In a public session of a meeting of EU finance ministers in Brussels, Mr. Dombrovskis urged… Continue Reading

EU and CFTC Implement Mutual Recognition of Derivatives Trading Venues

Posted in CFTC, Derivatives, EU Developments, Financial Markets
As contemplated by announcements last month, the European Commission (EC) and the Commodity Futures Trading Commission (CFTC) took action this week to implement mutual recognition of derivatives trading venues in advance of the January 3, 2018 compliance date for the Markets in Financial Instruments Directive (MiFID II) requirement that the most liquid derivative instruments that… Continue Reading

EBA Closes Breach of EU Law Investigation Relating to Dutch Prudential Regime for Proprietary Traders

Posted in EU Developments, Financial Markets
On December 6, the Breach of Union Law Panel of the European Banking Authority (EBA) published a press release relating to a breach of European Union (EU) law (BUL) investigation against the Dutch central bank, De Nederlandsche Bank (DNB), relating to the latter’s prudential framework for proprietary traders. Since January 2014, the DNB had designated… Continue Reading

UK and EU Reach Agreement on the First Phase of Brexit Negotiations

Posted in Brexit, Brexit/UK Developments, EU Developments, UK Developments
Following months of, at times, protracted negotiations, the UK and European Union (EU) negotiating teams have published the text of an agreement on the terms of the UK’s withdrawal from the EU. These negotiations have focused on three primary topics:… Continue Reading

ESMA Publishes Transitional Transparency Calculations for Equity and Bond Instruments

Posted in Derivatives, EU Developments, Financial Markets
On December 7, the European Securities and Markets Authority (ESMA) published transitional transparency calculations (TTC) for equity and bond instruments for the purposes of the revised Markets in Financial Instruments Directive (MiFID II) and the Markets in Financial Instruments Regulation (MiFIR). MiFID II and MiFIR introduce transparency requirements for equities, bonds, structured finance products, emission… Continue Reading

ESMA Publishes Video and Slides on LEI Requirements Under MiFID II

Posted in EU Developments
On November 20, the European Securities and Markets Authority (ESMA) published a video and accompanying presentation slides that it used for a webinar on the legal entity identifier (LEI) requirements under the revised Markets in Financial Instruments Directive (MiFID II) and the accompanying Markets in Financial Instruments Regulation (MiFIR).… Continue Reading

Deadline Set for Banks To Meet New Payment Standards in Europe

Posted in EU Developments
The Payment Services Directive (PSD2) becomes effective in January 2018, and its regulatory technical standards (RTS) on strong customer authentication and common and secure open standards of communications are scheduled to be published in September 2019 in the Official Journal of the European Union. But the requirements of the RTS will now be considered actionable… Continue Reading

MiFIR and EMIR Indirect Clearing Regulatory Technical Standards Now Published

Posted in EU Developments
On November 21, the following Commission Delegated Regulations (Delegated Regulations) were published in the Official Journal of the European Union (OJEU): Delegated Regulation ((EU) 2017/2154) (MiFIR IC RTS), which supplements the Markets in Financial Instruments Regulation (Regulation 600/2014) (MiFIR) with regard to regulatory technical standards (RTS) on indirect clearing arrangements); and Delegated Regulation ((EU) 2017/2155)… Continue Reading

ESAs Announce Urgent Review of Variation Margin Rules Applicable to Physically Settled FX Beginning January 3, 2018

Posted in EU Developments
As previously noted in this publication, on January 3, 2018, physically settled foreign exchange forward transactions (FX Forwards) are scheduled to become subject to the variation margin requirements set out in Commission Delegated Regulation (EU) 2016/2251 of October 4, 2016 (EU Margin Regulation) that apply generally to OTC derivatives.… Continue Reading

ESMA Highlights ICO Risks

Posted in EU Developments
On November 13, the European Securities and Markets Authority (ESMA) published two statements (statements) in relation to initial coin offerings (ICOs); one was made in relation to the risks of ICOs for investors and the other is in relation to the rules for firms involved in ICOs. ICOs are a way for businesses or individuals… Continue Reading

ESMA Agrees to MiFID II Position Limits Proposed by FCA

Posted in Derivatives, EU Developments, Financial Markets
On October 24, the European Securities and Markets Authority (ESMA) published nine opinions on limits regarding commodity derivatives under the revised Markets in Financial Instruments Directive (MiFID II) and the Markets in Financial Instruments Regulation (MiFIR). The opinions follow the work plan agreed by ESMA and the national competent authorities of the European Union (NCAs),… Continue Reading

Three Developments Concerning EU-US Cross-Border Swaps

Posted in CFTC, Derivatives, Dodd-Frank Developments, EU Developments
On October 13, the Commodity Futures Trading Commission and the European Commission (EC) made three announcements that are significant for cross-border swap activity between the United States and Europe. CFTC Margin Rule Comparability Determination. The CFTC has made a determination that the margin rules for uncleared swaps that apply in the European Union are comparable to… Continue Reading

EU Begins Infringement Proceedings Against 19 Member States Failing to Implement MiFID II

Posted in EU Developments, Financial Markets
The European Commission has launched infringement proceedings against 19 member states of the European Union whom it states are failing in transposing the revised Markets in Financial Instruments Directive (MiFID II) into local law. MiFID II is due to go into effect on January 3, 2018, and the deadline for transposition into local law was… Continue Reading

ESMA Updates MiFID II Q&A on Commodity Derivatives

Posted in EU Developments
On October 4, the European Securities and Markets Authority (ESMA) updated a question and answer document (Q&A) relating to commodity derivatives under the revised Markets in Financial Instruments Directive (MiFID II) and the Markets in Financial Instruments Regulation (MiFIR). The updated Q&A contains new questions and answers relating to the following topics: position management controls… Continue Reading

ESMA Highlights Importance of LEI for MiFID II Compliance

Posted in EU Developments
On October 9, the European Securities and Markets Authority (ESMA) published a briefing (Briefing) on the importance of the legal entity identifier (LEI) in enabling firms to comply with their obligations under the revised Markets in Financial Instruments Directive (MiFID II) and the Markets in Financial Instruments Regulation (MiFIR), beginning January 3, 2018.… Continue Reading

ESMA Updates UCITS and AIFMD Q&As

Posted in EU Developments
On October 5, the European Securities and Markets Authority (ESMA) updated two question and answer documents: one relating to the Undertakings for the Collective Investment in Transferable Securities Directive (UCITS) and the other relating to the Alternative Investment Fund Managers Directive (AIFMD).… Continue Reading

ESMA Chairman Comments on MiFID II implementation and Brexit

Posted in EU Developments
On September 29, Reuters published comments from European Securities and Markets Authority (ESMA) Chairman Stephen Maijoor on the implementation of the significantly revised and updated Markets in Financial Instruments Directive (MiFID II and its subordinate regulations and directives) and the implications of Brexit.… Continue Reading

ESMA Translations of Guidelines on MiFID II Reporting, Recordkeeping and Clock Synchronization

Posted in EU Developments
On October 2, the European Securities and Markets Authority (ESMA) published the official, finalized versions of its Guidelines on transaction reporting, order recordkeeping and business clock synchronization under MiFID II—each translated into the official languages of the European Union. The finalized Guidelines appear on ESMA’s webpage in each of the official languages, with the English language… Continue Reading

ESMA Publishes Additional Guidance on Direct Electronic Access

Posted in EU Developments
On October 3, the European Securities and Markets Authority (ESMA) updated its questions and answers on market structures topics (Q&A) under the revised Markets in Financial Instruments Directive (MiFID II) and the accompanying Markets in Financial Instruments Regulation. The updated ESMA Q&A addresses several open questions regarding the provision and receipt of direct electronic access… Continue Reading

Update on MiFID II ESMA Opinions for Pre-Trade Transparency Waivers and Position Limits

Posted in EU Developments
On September 28, the European Securities and Markets Authority (ESMA) issued a press release (Press Release) that it and the national competent authorities (NCAs) had agreed to a work plan (Work Plan) on completing the opinions that must be issued by ESMA under the Markets in Financial Instruments Directive (MiFID II) and Regulation (MiFIR) in… Continue Reading

European Commission Adopts Final Rules on Indirect Clearing

Posted in EU Developments
On September 22, the European Commission adopted two delegated regulations to implement new EU-wide rules on “indirect clearing arrangements” for the exchange-traded derivatives market (ETD Delegated Regulation) and for the over-the-counter (OTC) derivatives market (OTC Delegated Regulation). The term “indirect clearing arrangement” refers to a set of relationships—also called a “chain”—where at least two intermediaries… Continue Reading

ESMA Publishes Final Text of Mandatory Trading Obligation

Posted in EU Developments
On September 29, the European Securities and Markets Authority (ESMA) published the text of the final draft regulatory technical standards (TO RTS) for implementing the mandatory trading obligation under the Markets in Financial Instruments Regulation (MiFIR) for certain standardized over-the-counter (OTC) derivatives. Article 28 of MiFIR mandatory trade execution obligations affect OTC Derivatives that are… Continue Reading