On 31 May 2019, the FCA published Policy Statement 9/13: Proposals to promote shareholder engagement: Feedback to CP19/7 and final rules (PS19/13). PS19/13 follows Consultation Paper 19/7: Consultation to improve shareholder engagement (CP19/7) (our blog is here). In CP19/7 the FCA set out proposals to implement the requirements of the revised Shareholder Rights Directive (SRD II). The final rules and guidance in PS19/13 will apply to regulated life insurers, asset managers and companies…

On 3 June 2019, the European Securities and Markets Authority (ESMA) published a supervisory briefing on ensuring compliance with the MiFIR pre-trade transparency requirements in commodity derivatives. The briefing provides guidance to Member State competent authorities (NCAs) as regards supervisory and enforcement actions to ensure compliance with pre-trade transparency requirements for negotiated trades in commodity derivatives under MiFIR. The briefing’s purpose is to increase supervisory convergence among NCAs and provide a common timetable for the…

On 3 June 2019, the Financial Stability Board (FSB) published a discussion paper on the solvent wind-down of derivatives and trading portfolios. The discussion paper sets out considerations related to the solvent wind-down of the derivative portfolio activities of a global systemically important bank (G-SIB) that may be relevant for authorities and firms for both recovery and resolution planning. Many G-SIBs have large derivative and trading portfolios, including in some cases with illiquid or exotic…

On 29 May 2019 ESMA released a statement clarifying its position on the share trading obligation in a hard Brexit scenario. In its view, all EU27 shares, i.e. ISINs starting with a country code corresponding to an EU27 Member State and, in addition, shares with an ISIN from Iceland, Liechtenstein and Norway are within the scope of the share trading obligation under EU MiFIR and must therefore be traded on an EU venue. Shares with…

On 27 May 2019, the European Securities and Markets Authority (ESMA) published an updated opinion on calculating market size of ancillary activity under MiFID II. The opinion, targeted at Member State national competent authorities, relates to Article 2(3) of Delegated Regulation 2017/592 which lays down the rules for calculating the overall market trading activity. The calculation of the overall market trading activity is necessary for the establishment of the size of trading activity per market…