Corporate & Financial Weekly Digest

Corporate & Financial Weekly Digest

Tag Archives: MiFID II

ESMA Releases Latest Double Volume Cap Data Under MiFID II

Posted in EU Developments, Financial Markets
On July 6, 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 June 15 edition of Corporate… Continue Reading

European Commission Confirms MiFID II Ancillary Exemption Test on An Entity-By-Entity Basis

Posted in Derivatives, EU Developments, Financial Markets
In a May 31 letter, the Vice President of the European Commission (EC), Valdis Dombrovskis, provided confirmation to the Chair of the European Securities and Markets Authority (ESMA) regarding the test to apply the ancillary activity exemption under Article 2(1)(j) of the revised Markets in Financial Instruments Directive (MiFID II). In April 2018, ESMA had… Continue Reading

ESMA Confirms No Extension to LEI Introduction Period

Posted in EU Developments, Financial Markets
In a press release of June 20, the European Securities and Markets Authority (ESMA) confirmed that the temporary introduction period for the use of legal entity identifiers (LEIs) will not be extended beyond July. The six-month period was designed to allow for a smooth introduction of the revised Markets in Financial Instruments Directive (MiFID II),… Continue Reading

ESMA Releases Latest Double Volume Cap Data Under MiFID II

Posted in EU Developments, Financial Markets
On June 7, 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 more information, see the May 11, 2018 edition of… Continue Reading

MiFID II/MiFIR Q&As Updated and Guidelines Published on MiFID II Suitability Requirements

Posted in EU Developments, Financial Markets
The European Securities and Markets Authority (ESMA) recently updated its questions and answers on the following topics: On May 29, the revised Markets in Financial Instruments Directive (MiFID II) Q&As on transparency and market structures topics (available here and here, respectively one for transparency and one for market structures). Among other things, ESMA clarifies how… Continue Reading

MiFID II/MiFIR Q&A Updates Concerning Best Execution and Client Categorization

Posted in EU Developments, Financial Markets
On May 25, the European Securities and Markets Authority (ESMA) updated its questions and answers on the revised Markets in Financial Instruments Directive (MiFID II) and Markets in Financial Instruments Regulation (MiFIR) investor protection and intermediaries topics, with nine new or updated Q&As.… Continue Reading

FCA Publishes Findings From Its Review of Automated Investment Services

Posted in Financial Markets, UK Developments
On May 21, the UK Financial Conduct Authority (FCA) published a webpage on its findings from its review of firms offering automated investment services. The aim of the review was to monitor developments in financial innovation to help inform the FCA’s regulatory strategy, as set out in its 2017/18 Business Plan. The FCA reviewed the… Continue Reading

ESMA Publishes Opinion on Position Limits on ICE Low Sulphur Gasoil 1st Line Contracts

Posted in EU Developments, Financial Markets
On May 15, the European Securities and Markets Authority (ESMA) published an opinion on position limits proposed by the UK Financial Conduct Authority (FCA) in respect of ICE Low Sulphur Gasoil 1st Line Future and Option contracts. ESMA found that the contracts are consistent with the objectives established in the revised Markets in Financial Instruments… Continue Reading

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

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

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

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

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

ESMA Updates MiFID II Q&As on Investor Protection

Posted in EU Developments, Financial Markets
On March 23, the European Securities and Markets Authority (ESMA) updated its Q&As relating to investor protection under the revised Markets in Financial Instruments Directive (MiFID II) and the Markets in Financial Instruments Regulation (MiFIR). The Q&As include updated existing questions and answers relating to inducements, information on costs and charges, and post-sale reporting. The… Continue Reading

ESMA Updates Q&As on Market Abuse Regulation

Posted in EU Developments, Financial Markets
On March 23, the European Securities and Markets Authority (ESMA) updated its Q&As on the Market Abuse Regulation (MAR). ESMA last updated the Q&As on December 14, 2017, as reported in the Corporate & Financial Weekly Digest edition of December 15, 2017. The updated Q&As now consider the disclosure of inside information related to the… Continue Reading

ESMA Publishes List of Trading Venues and CCPs Benefitting From a Transitional Exemption From the Access Provisions of MiFIR

Posted in EU Developments, Financial Markets
On March 26, the European Securities and Markets Authority (ESMA) published a list of the trading venues and central counterparties (CCPs) benefitting from a temporary exemption from the access provisions set out in Articles 35 and 36 of the Markets in Financial Instruments Regulation (MiFIR). CCPs and trading venues had until January 3 to apply… Continue Reading

ESMA Publishes Speech on Supervisory Convergence, Transaction Cost Transparency and Pan-European Regulators

Posted in Brexit, Brexit/UK Developments, EU Developments, Financial Markets
Steven Maijoor, Chair of the European Securities and Markets Authority (ESMA) spoke on March 20, regarding ESMA’s work during the past year. In his speech, Mr. Maijoor commented on ESMA’s work in relation to: supervisory convergence to limit the scope for regulatory arbitrage in light of the United Kingdom’s upcoming withdrawal from the European Union… Continue Reading

FCA Webpage on Capital Requirements Adds Important Transitional Arrangement

Posted in UK Developments
On March 5, the UK’s Financial Conduct Authority (FCA) published a webpage explaining that Article 493 of the Capital Requirements Regulation (CRR) has been updated by Article 1(2) of the IFRS 9 Regulation (an International Financial Report Standard promulgated by the International Accounting Standards Board). The CRR now incorporates a transitional arrangement,  allowing firms such… Continue Reading

ESMA Publishes Trading Volumes and Calculations Regarding the Double Volume Cap Under MiFID II

Posted in EU Developments
On March 7, the European Securities and Markets Authority (ESMA) published trading volumes and calculations regarding the double volume cap (DVC) under the revised Markets in Financial Instruments Directive (MiFID II) and the Markets in Financial Instruments Regulation (MiFIR).… Continue Reading

FCA Publishes “Dear CEO” Letter on Quality of Prudential Regulation Returns

Posted in Financial Markets, UK Developments
On February 19, the UK’s Financial Conduct Authority (FCA) published a “Dear CEO” letter that it recently sent to IFPRU investment firms and BIPRU firms (as defined below) concerning the quality of information submitted to the FCA in prudential regulation returns.… Continue Reading

FCA Publishes Report on Algorithmic Trading

Posted in UK Developments
On February 12, the UK Financial Conduct Authority (FCA) published a report on algorithmic trading compliance in wholesale markets. The report highlights key requirements in the revised Markets in Financial Instruments Directive (MiFID II) relating to algorithmic trading activity, and contains examples of good and bad practices observed during the FCA’s reviews of FCA regulated… Continue Reading

FCA Revises List of MiFID II Position Limits

Posted in Derivatives, Financial Markets, UK Developments
The UK Financial Conduct Authority (FCA) has reviewed the bespoke position limits set for a number of commodity derivatives traded on UK venues. Following its review and as a result of strong growth in some commodity derivative contracts, the FCA has increased the limits of approximately 20 commodity derivative contracts as of February 8.… Continue Reading