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On 19 March 2019, the European Securities and Markets Authority (ESMA) published a statement on the impact of a no-deal Brexit on the trading obligation for shares under Article 23 of MiFIR. Article 23 of MiFIR requires investment firms to conclude transactions in shares admitted to trading on a regulated market (RM) or traded on an EU trading venue on: (i) RMs, (ii) multilateral trading facilities, (iii) systematic internalisers; or (iv) third-country trading venues assessed…
On 20 March 2019, the European Money Markets Institute (EMMI) published a consultation on the change in the methodology of the Euro OverNight Index Average (EONIA), as recommended by the Working Group on Euro Risk-Free Rates. The EMMI is consulting on the following recommendations of the Working Group: the implementation of the recalibrated methodology for EONIA, whereby EONIA will be defined as the Euro Short Term Rate (ESTR) plus a spread; the continued publication of…
On 19 March 2019, the European Securities and Markets Authority (ESMA) published the results of the annual transparency calculations of the large in scale (LIS) and size specific to the instruments (SSTI) thresholds for bonds. The results are published on a per bond-type basis in excel format in the Annual transparency calculations for non-equity instruments register . The results on a per ISIN basis will be published through the Financial Instruments Transparency System (FITRS) in…
On 15 March 2019, the FCA published a statement endorsing credit ratings from the EU into the UK for regulatory use in a no deal Brexit scenario. The FCA has assessed the EU regulatory regime to be ‘as stringent as’ the UK’s regime for the purposes of allowing UK registered credit rating agencies  to endorse credit ratings into the UK from affiliated EU credit rating agencies for regulatory use, under the Credit Rating Agencies Regulation (as…
On 15 March 2019, the European Commission published a communication on its progress on developing the Capital Markets Union (CMU). The communication outlines the rationale of the CMU, as well as the progress achieved so far in developing the CMU. The communication makes three conclusions: the European Commission has now delivered the measures it committed to at the beginning of its CMU action plan and in the mid-term review to put in place the building…
On 14 March 2019, the FCA issued a supervisory statement on the operation of the MiFID II transparency regime post-Brexit. Essentially, the supervisory statement sets out how the FCA will operate the pre- and post-trade transparency regime for the secondary trading of financial instruments if the UK exits the EU without a deal. The statement also takes account of the statement that the European Securities and Markets Authority (ESMA) issued on 5 February 2019: Use…
On 14 March 2019, the European Commission adopted a Delegated Regulation that amends Delegated Regulation (EU) 2017/1799 as regards the exemption of the People’s Bank of China from the pre- and post-trade transparency requirements in MiFIR. The Commission has also published an Annex to the adopted Delegated Regulation, which replaces the current Annex to Commission Delegated Regulation (EU) 2017/1799. The Delegated Regulation will be considered by the European Parliament and the Council of the EU.…
On 14 March 2019, the Committee on Payments and Market Infrastructures and the International Organization of Securities Commissions jointly published an update on the progress jurisdictions have made in implementing international standards for payment systems, central securities depositories, securities settlement systems, central counterparties and trade repositories. The information is based on self-assessments made by individual jurisdictions of how they have adopted measures to implement the 24 Principles for financial market infrastructures (PFMI) and four of…
On 13 March 2019, the Presidency of the Council of the EU announced that provisional agreement had been reached with the European Parliament on legislative amendments to EMIR as to how EU and third country clearing houses should be supervised in the future. The provisional agreement will now need to be confirmed by EU ambassadors. Separately, the European Commission and the US Commodity Futures Trading Commission (CFTC) have issued a joint statement on the proposed…
On 13 March 2019, the European Parliament (EP) published a provisional version of a decision raising no objections to a Delegated Regulation amending Delegated Regulation (EU) 2019/2579 as regards the possibility to adjust the average daily number of transactions for a share where the trading venue with the highest turnover of that share is located outside the EU. The decision notes, among other things, that the European Parliament considers that the draft Delegated Regulation is…