On August 27, the International Swaps and Derivatives Association (ISDA) and the Association for Financial Markets in Europe (AFME) (together, the Joint Associations) wrote a letter (Letter) to the European Commission and the European Supervisory Authorities to express gratitude for the mitigation of the impact on both European Union (EU) and United Kingdom (UK) market participants, in anticipation of the UK’s departure from the EU.
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European Supervisory Authorities
European Supervisory Authorities Release Guidance on PRIIPS KID
Posted in EU Developments, Financial Markets
On July 20, the Joint Committee of the European Supervisory Authorities (ESAs), which comprises the European Banking Authority, the European Insurance and Occupational Pensions Authority and the European Securities and Markets Authority, updated its Q&As on the key information document (KID) required to be issued in connection with packaged retail and insurance-based investment products (PRIIPs)…
ESAs Publish Final Report Aiming to Align Variation Margin Rules for FX Forwards With Supervisory Guidance in Other Key Jurisdictions
By Carolyn H. Jackson & Guy C. Dempsey Jr. on
Posted in Derivatives, EU Developments
On December 18, 2017, the European Supervisory Authorities (ESAs) published a final report aiming to align the treatment of variation margin for physically settled foreign exchange forward transactions (FX Forwards) with supervisory guidance applicable in other key jurisdictions.
The amended draft variation margin regulatory technical standards on risk mitigation techniques for over-the-counter (OTC) derivatives not cleared by a central counterparty (Draft RTS) limit the requirement to collect variation margin for FX Forwards to only transactions concluded between “institutions,” defined by the ESAs as credit institutions and investment firms, or with an equivalent entity located in a third country that would meet the definition of “institution” if located in the European Union (EU).
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Anti-Money Laundering: JMLSG Opens Consultation on Proposed Revisions to Part I of Its Guidance
By Neil Robson on
Posted in Financial Markets, UK Developments
On March 21, the UK’s Joint Money Laundering Steering Group (JMLSG) opened a consultation on (Consultation), and published proposed revisions (Proposal) to, Part I of its guidance on the prevention of money laundering and the financing of terrorism for the UK financial services industry (Guidance).
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EU and Prudential Regulators Issue Statements on March 1 Compliance With Swap Margin Rules
By Guy C. Dempsey Jr. on
Lacking the ability to issue formal no-action relief from strict compliance with the variation margin rules for uncleared swaps coming into effect on March 1, the Board of Governors of the Federal Reserve System, the Office of Comptroller of the Currency (OCC) and the European Supervisory Authorities (ESA) have each issued statements suggesting that they …
ESAs Publish Statement On Variation Margin Exchange
By Carolyn H. Jackson & Nathaniel Lalone on
Posted in EU Developments, Financial Markets
On February 23, the European Supervisory Authorities (ESAs), which consist of the European Banking Authority, European Insurance and Occupational Pensions Authority, and the European Securities and Markets Authority, published a joint statement (Statement) in response to industry requests relating to operational challenges in meeting the deadline of March 1 for exchanging variation margin imposed by the European Market Infrastructure Regulation (EMIR).
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European Supervisory Authorities Respond to European Commission Amendments to Risk Mitigation Techniques for Uncleared Derivatives
By Nathaniel Lalone on
Posted in Derivatives, EU Developments
On September 8, the European Supervisory Authorities (ESAs, consisting of the European Banking Authority, the European Insurance and Occupational Pensions Authority and the European Securities and Markets Authority) published its opinion on the European Commission’s (Commission) proposed amendments to the final draft regulatory technical standards (RTS) on risk mitigation techniques for uncleared, over-the-counter derivatives (Opinion).
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European Supervisory Authorities Consult on AML-CFT Guidelines
By Nathaniel Lalone on
Posted in EU Developments
On October 21, the joint committee of the three European Supervisory Authorities (ESAs, comprising the European Banking Authority, the European Securities and Markets Authority, and the European Insurance and Occupational Pensions Authority) opened a public consultation on two sets of anti-money laundering and countering the financing of terrorism (AML-CFT) guidelines.
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