Latest Articles

On 18 May 2018, there was published in the Official Journal of the EU (OJ), Commission Delegated Regulation (EU) 2018/728 of 24 January 2018 supplementing Regulation (EU) No 575/2013 of the European Parliament and of the Council with regard to regulatory technical standards for procedures for excluding transactions with non-financial counterparties established in a third country from the own funds requirement for credit valuation adjustment risk. The Commission Delegated Regulation enters into force on…
On 27 April 2018, the European Securities and Markets Authority (ESMA) published a letter it had sent to the European Commission asking for clarification relating to the exemptions from the financial obligations under Article 41 and 42 of EMIR. The letter notes that at a recent ESMA Board of Supervisors meeting there was a discussion regarding whether a central counterparty (CCP) could exempt certain clearing members (typically public entities such as governmental entities, central banks…
On 25 April 2018, the ISDA published A practical guide to navigating derivatives trading on US-EU recognised trading venues. In particular the guide analyses the effect of mutual recognition on the order flow of trades executed on US and EU derivatives trading venues, highlighting benefits and pointing to areas where further US / EU alignment would be welcome. The guide is also intended to help market participants navigate the numerous regulatory requirements related to…
On 9 April 2018, the Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) co-published a report that provides technical guidance to authorities on harmonised definitions, formats and usage of a set of critical data elements for over-the-counter (OTC) derivative transactions reported to trade repositories, excluding the unique transaction identifier (UTI) and the unique product identifier (UPI). The guidance is global in scale, takes account of relevant international technical…
On 28 March 2018, the European Securities and Markets Authority updated its MiFID II Q&As on transparency and market structures issues. The Q&As provide clarification on the following topics: the scope of the trading obligation for derivatives; the default tick size regime; fee structures; systematic internalisers and matched principal trading; and direct electronic access prover’s controls and suitability checks.…
On 27 March 2018, the FCA issued Guidance Consultation 18/1: Proposed guidance on financial crime systems and controls: insider dealing and market manipulation (GC18/1). The FCA is proposing to update the financial crime guide for firms (Guide) with an additional chapter on insider dealing and market manipulation. The new chapter will outline the FCA’s observations of good and bad market practice around the requirement to detect, report and counter the risk of financial crime, as…
On 23 March 2018, the Financial Stability Board (FSB) launched a survey seeking responses from financial institutions and other reporting entities on issues they may face with legal barriers to the reporting of full transaction information about over-the-counter (OTC) derivatives. The deadline for responding to the survey is 25 April 2018. FSB members have raised concerns that restrictions on reporting complete OTC derivatives transaction information to trade repositories can limit its usefulness to authorities in…
On 21 March 2018, the European Securities and Markets Authority (ESMA) published an opinion providing further guidance on the treatment of packages under the trading obligation for derivatives (TO) which MiFIR introduced on 3 January 2018. ESMA notes that the TO as specified in Commission Delegated Regulation 2017/2417 is designed to apply at the level of a financial instrument and not at the level of the package. Therefore, only components of a package are subject…
The Bank of England (BoE) and HM Treasury have co-published a consultation paper concerning the fee regime for financial market infrastructure supervision 2018/19. The consultation relates to the development of the BoE’s proposal to introduce a new funding structure for the supervision of financial market infrastructures and service providers to recognised payment systems. HM Treasury is conducting the consultation with the BoE as it is consulting on a statutory instrument. In order for the BoE…