Corporate & Financial Weekly Digest

Corporate & Financial Weekly Digest

Tag Archives: Financial Markets

FCA Publishes Issue 55 of Market Watch Newsletter

Posted in Derivatives, Financial Markets, UK Developments
On December 12, the UK Financial Conduct Authority (FCA) published issue 55 of Market Watch, its newsletter on market conduct and transaction reporting issues. Similar to Issue 54 of Market Watch (reported in the Corporate & Financial Weekly Digest edition of November 10, 2017), Issue 55 contains articles of relevance to the implementation of the… Continue Reading

FCA Consults on Transitioning Firms and Individuals to SM&CR

Posted in Financial Markets, UK Developments
On December 13, the UK Financial Conduct Authority (FCA) published three consultation papers (CPs) on the transition from its existing Approved Persons Regime (APR) to the new Senior Managers and Certification Regime (SM&CR). The CPs follow the FCA’s July 2017 consultation papers, which consulted on extending the SM&CR regime to all regulated firms (including both… Continue Reading

FCA Publishes “Dear CEO” Letter on Payment for Order Flow

Posted in Financial Markets, UK Developments
On December 13, the UK Financial Conduct Authority (FCA) published a “Dear CEO” letter expressing its concerns over the practice of brokers demanding payments from counterparties in exchange for conducting client business with them, also known as payment for order flow (PFOF). The letter follows the FCA’s September 2016 update, published in their Market Watch… Continue Reading

ESMA Provides Update on MiFID II Registers

Posted in EU Developments, Financial Markets
On December 8, the European Securities and Markets Authority (ESMA) published a press release confirming that it will provide updated registers in line with the revised Markets in Financial Instruments Directive (MiFID II) and the Markets in Financial Instruments Regulation (MiFIR). On January 3, 2018, the effective date of MiFID II and MiFIR, ESMA will… Continue Reading

European Commission Implementing Decisions Recognizing Certain Third-Country Equities Markets Under MiFID II Published in OJ

Posted in EU Developments, Financial Markets
On December 14, the following decisions (Implementing Decisions) on the equivalence of the legal and supervisory frameworks of certain third countries, in accordance with Article 25(4)(a) of the revised Markets in Financial Instruments Directive (MiFID II), were published in the Official Journal of the EU (OJ): European Commission Implementing Decision ((EU) 2017/2318) on the equivalence of… Continue Reading

Delegated Regulation Amending MiFID II Definition of Systematic Internalizer Published in OJ

Posted in EU Developments, Financial Markets
On December 13, as reported in the Corporate & Financial Weekly Digest edition for September 1, 2017, Delegated Regulation (EU) 2017/2294 amending Delegated Regulation (EU) 2017/565 as regards the specification of the definition of systematic internalizers for the purposes of the revised Markets in Financial Instruments Directive (Delegated Regulation), was published in the Official Journal… Continue Reading

ESMA Publishes New/Updated Q&As on MiFID II, Commodity Derivatives, EMIR and MAR

Posted in EU Developments, Financial Markets
On December 14 and 15, the European Securities and Markets Authority (ESMA) published a number of new and updated question and answer documents (Q&As) relating to, among other things, the revised Markets in Financial Instruments Directive (MiFID II) and the Markets in Financial Instruments Regulation (MiFIR). The Q&As relate to the following topics: MiFID II… Continue Reading

FCA’s Changes to Connect Impact MiFID Passport Notifications

Posted in Financial Markets, UK Developments
On December 4, the UK Financial Conduct Authority (FCA) announced changes, effective from the same date, to Connect, its online system that is used by firms to make various applications and notifications to the FCA. The changes reflect the revised Markets in Financial Instruments Directive legal framework (MiFID II), in anticipation of the implementation of… Continue Reading

HM Treasury Publishes Renewed Investment Management Strategy

Posted in Financial Markets, UK Developments
On December 6, Her Majesty’s Treasury published a report setting out the UK government’s renewed long-term investment management strategy. This follows the announcement by the UK Chancellor of the Exchequer, Philip Hammond, in his Autumn 2017 Budget on November 22, that the government would be publishing its new strategy to “ensure that the UK asset… Continue Reading

UK FCA, Dutch AFM and French AMF Publish Position Limits for Commodity Derivative Contracts

Posted in Derivatives, Financial Markets, UK Developments
Under the revised Markets in Financial Instruments Directive (MiFID II), limits are required to be established on the size of a net position a person can hold (at all times) in commodity derivatives traded on EU/European Economic Area (EEA) trading venues and economically equivalent over-the-counter contracts. On December 7, the UK Financial Conduct Authority (FCA)… Continue Reading

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

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

FCA and BaFIN Publish Position Limits for Commodity Derivative Contracts

Posted in UK Developments
Under the revised Markets in Financial Instruments Directive (MiFID II), limits are required to be established on the size of a net position a person can hold (at all times) in commodity derivatives traded on European Union/European Economic Area trading venues and economically equivalent over-the-counter contracts.… Continue Reading

Barnier Discusses Meaning of Brexit for Financial Services

Posted in UK Developments
On November 20, the European Commission published a speech on the future of the European Union given by Michel Barnier, the EU’s chief Brexit negotiator, at the Centre for European Reform. In the Speech, Mr. Barnier focused on Brexit and identified three keys to the European Union building a strong partnership with the United Kingdom:… 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