On March 9, the European Parliament’s Economic and Monetary Affairs Committee (ECON) published a draft report detailing recommendations to the European Commission on the proposed Regulation on markets in cryptoassets and amending Directive (EU) 2019/1937 (the Draft Report).
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EU Developments
European Commission Publishes Draft Delegated Act on FRANDT
On March 10, the European Commission (the Commission) published a draft delegated act detailing the obligation on clearing members and clients when providing clearing services under fair, reasonable, non-discriminatory and transparent (FRANDT) commercial terms (the Delegated Act).
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ESMA Publishes Guidelines on Supervisory Review and Evaluation Process of CCPs
On February 22, the European Securities and Markets Authority (ESMA) published its final report on guidelines to clarify common procedures and methodologies for the supervisory review and evaluation process of central counterparties (CCPs) by their national competent authorities (NCAs) (the Report).
The proposed guidelines addressed in the Report by ESMA include:
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MiFID II “Quick Fix” Adopted in Response to COVID-19
On February 15, the Council of the European Union (the Council) published a press release announcing the adoption of a “quick fix” amendment to the revised Markets in Financial Instruments Directive (MiFID II) in response to the economic impact caused by the COVID-19 pandemic (the Amendment).
The key changes to MiFID II in the Amendment include:
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European Commission Publishes Delegated Regulations Under EMIR on Risk Mitigation and Clearing Obligation
On February 17, the European Commission (the Commission) published two Delegated Regulations amending the European Market Infrastructure Regulation (EMIR) Margin Regulatory Technical Standards (RTS) and the Clearing Obligation RTS (the Delegated Regulations).
The key amendments proposed by the Commission in the Margin RTS include:
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European Commission Adopts Equivalence Decision With Respect to SEC Regulatory Framework for Central Counterparties
On January 27, Allison Herren Lee, the acting chair of the Securities and Exchange Commission, announced the European Commission’s (EC) adoption of an equivalence decision, stating that the SEC’s regulatory framework applicable to central counterparties (CCPs) that are “covered clearing agencies” under SEC rules is equivalent to relevant European legal and regulatory requirements.
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ESMA Reminds Firms of MiFID II Rules on Reverse Solicitation Post-Brexit
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).
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ESMA Publishes Consultation Paper on Impact of Algorithmic Trading
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.
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ESMA Renews 0.1 Percent Reporting Requirement Decision for Net Short Position Holders
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).
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European Commission Consults on Review of CSDR
On December 8, the European Commission (the Commission) published a consultation paper on its review of the Central Securities Depositories Regulation (909/2014) (CSDR) (the Consultation Paper).
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