Corporate & Financial Weekly Digest

Corporate & Financial Weekly Digest

Tag Archives: Financial Markets

Legal Entity Identifier Regulatory Oversight Committee Issues Second Progress Report

Posted in EU Developments, Financial Markets
On May 2, the Legal Entity Identifier Regulatory Oversight Committee (LEI ROC) published its second progress report, which included an overview of the Global Legal Entity Identifier System (GLEIS), regulatory uses of the LEI and LEI ROC’s activities. The LEI ROC’s first progress report was published on November 5, 2015.… Continue Reading

ECB Publishes Article on Impact of Brexit Transition Period

Posted in Brexit, EU Developments, Financial Markets
On May 16, the European Central Bank (ECB) published an article on the impact of a potential Brexit transition period (for more information on the proposed transition period, please see the Corporate & Financial Weekly Digest edition of March 23, 2018). In the article, the ECB sets out how the transition period affects its expectations… Continue Reading

Council of EU Adopts MLD5

Posted in EU Developments, Financial Markets
On May 14, the Council of the EU published a press release announcing that it has adopted the proposed Fifth Money Laundering Directive (MLD5). The introduction of MLD5 forms part of the European Commission’s action plan to counter terrorist financing and money laundering, published in February 2016 (further details are available in the Corporate & Financial… Continue Reading

UK Government Responds to Report on Brexit

Posted in Brexit/UK Developments, Financial Markets
On May 9, the UK government published its response to the House of Lords European Union Committee’s report, entitled “Brexit: The Future of Financial Regulation and Supervision,” which was published on January 27. The Committee’s report includes recommendations under six categories, including: 1. Incorporating the EU acquis (being the accumulated legislation and court decisions) in… Continue Reading

ESMA Unveils One-Stop Company Portal for Information on EU Authorization

Posted in EU Developments, Financial Markets
On May 7, the European Securities and Markets Authority (ESMA) announced a new portal for investors seeking information on whether a financial services provider is authorized within the European Union. The portal includes registers of the following: Markets in Financial Instruments Directive (MiFID) investment firms, including systematic internalizers; MiFID trading venues; MiFID data reporting service… 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

ESMA Releases Latest Double Volume Cap Data Under MiFID II

Posted in EU Developments, Financial Markets
On May 8, the European Securities and Markets Authority (ESMA) updated its public register with the latest set of double volume cap (DVC) data under the revised Markets in Financial Instruments Directive (MiFID II). The update follows last month’s update to the DVC public register (for further details, see the April 13 edition of Corporate… Continue Reading

ESAs Publishes Consultation Papers Regarding Securitization Regulation

Posted in EU Developments, Financial Markets
The European Market Infrastructure Regulation (EMIR) imposes clearing and risk mitigation obligations on firms trading in the European Economic Area. On May 4, the Joint Committee of European Supervisory Authorities (ESAs) published two consultation papers in relation to the interaction of the Securitization Regulation (SR) with those obligations under EMIR, specifically: A consultation paper with… Continue Reading

ESMA Publishes First Liquidity Assessment for Bonds Subject to MiFID II Transparency Requirements

Posted in EU Developments, Financial Markets
On May 2, the European Securities and Markets Authority (ESMA) published its first liquidity assessment for bonds that are subject to the pre- and post-trade requirements of the revised Markets in Financial Instruments Directive (MiFID II) and the Markets in Financial Instruments Regulation.… Continue Reading

US and UK Announce New Financial Regulatory Working Group

Posted in Brexit, Brexit/UK Developments, Financial Markets, UK Developments
On April 19, HM Treasury and the US Treasury Department published a joint statement announcing the formation of a US-UK Financial Regulatory Working Group (Working Group). The joint statement explains that Brexit provides an opportunity for the Working Group to formalize existing US-UK regulatory cooperation. The Working Group will include staff from the respective treasury… Continue Reading

FCA Adds New Interactive Tools to Asset Management Authorization Hub

Posted in Financial Markets, UK Developments
On April 20, the UK Financial Conduct Authority (FCA) updated its asset management authorization hub (Hub), which launched on October 16, 2017, as detailed in the Corporate & Financial Weekly Digest edition of October 20, 2017. The updated Hub includes a number of new interactive tools, complementing existing ones, to support firms through the regulatory… Continue Reading

European Commission Proposes New Directive to Protect EU Whistleblowers

Posted in EU Developments, Financial Markets
On April 23, the European Commission (EC) adopted a package of measures, including a draft Directive and an Impact Assessment, to protect whistleblowers who report breaches of EU law. The definition of a “whistleblower” under the proposed new Directive would encompass any person who has “privileged access to information about breaches that can cause serious… 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

EBA Publishes Report Regarding ITS on Reporting for Resolution Plans Under the EU BRRD

Posted in EU Developments, Financial Markets
On April 17, the European Banking Authority (EBA) published its draft implementing technical standards (ITS) on reporting for resolution plans under the EU Bank Recovery and Resolution Directive (BRRD). Under the BRRD, EU Member States must ensure that resolution authorities have the power to require investment firms and credit institutions to cooperate as much as… Continue Reading

ECON Publishes Proposed Amendments to Prudential Supervision of Investment Firms Directive

Posted in EU Developments, Financial Markets
On April 13, the European Parliament’s Committee on Economic and Monetary Affairs (ECON) published a draft report, featuring the European Parliament legislative resolution with ECON’s amendments to a proposal regarding the prudential supervision of EU investment firms. This amends the Capital Requirements Directive IV and the revised Markets in Financial Instruments Directive (MiFID II) (collectively,… Continue Reading

European Parliament Adopts Fifth Money Laundering Directive

Posted in EU Developments, Financial Markets
On April 19, the European Parliament (EP) published a press release announcing its adoption of a proposal for a fifth Anti-Money Laundering Directive (MLD5). The introduction of MLD5 forms part of the European Commission’s action plan to counter terrorist financing and money laundering, published in February 2016 (further details are available in the Corporate &… Continue Reading

FCA and PRA Publish 2018/19 Business Plans

Posted in UK Developments
On April 9, the UK Financial Conduct Authority (FCA) published its business plan for 2018/19. The business plan divides key priorities for the FCA over the coming year into three main areas: (1) the United Kingdom’s withdrawal from the European Union (Brexit); (2) cross-sector priorities; and (3) sector-specific priorities. The FCA’s business plan anticipates that… Continue Reading

FCA Publishes Statement Regarding the Requirement for Firms Offering Cryptocurrency Derivatives To Be Authorized

Posted in Digital Assets and Virtual Currencies, UK Developments
On April 6, the UK Financial Conduct Authority (FCA) published a statement on the requirement that firms trading in cryptocurrency derivatives may need to be authorized. The statement confirms that performing activities or providing services that amount to regulated activities in relation to derivatives are likely to require FCA authorization when performed in relation to… Continue Reading

ESMA Seeks EC Clarification on Ancillary Activity Test Under MiFID II

Posted in EU Developments
The European Securities and Markets Authority (ESMA) published a letter to the European Commission (EC) dated April 9, requesting clarification with respect to the exemption available to non-financial entities (NFEs) from having to be authorized as an investment firm under the revised Markets in Financial Instruments Directive (MiFID II).… 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 Updated Double Volume Cap Public Register

Posted in EU Developments
On April 10, the European Securities and Markets Authority (ESMA) published updated results of the double volume cap (DVC) mechanism on its website—for the period of March 1, 2017 to February 28, 2018, and for already published DVCs. The DVC mechanism is set out in the Markets in Financial Instruments Regulation (MiFIR) and is designed… Continue Reading

FCA Adopts Senior Managers Regime for Its Own Senior Management

Posted in UK Developments
The UK Financial Conduct Authority (FCA) has published a document setting out its intention to self-apply the principles of the Senior Managers Regime (SMR) to strengthen transparency and “reinforce the standards,” noting that certain differences in the application of the principles are inevitable due to the FCA’s status as a regulatory authority and public body,… Continue Reading