Financial services: Regulation tomorrow

Tracks financial services regulatory developments and provides insight and commentary

Latest from Financial services: Regulation tomorrow - Page 2

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 19 March 2019, the European Commission published for consultation the following draft Implementing Decisions under the Benchmarks Regulation (BMR): Commission Implementing Decision (EU) on the equivalence of the legal and supervisory framework applicable to benchmarks in Singapore in accordance with Regulation (EU) 2016/1011 of the European Parliament and of the Council, and annex; and Commission Implementing Decision (EU) on the equivalence of the legal and supervisory framework applicable to benchmarks in Australia in accordance…
On 20 March 2019, the European Banking Authority (EBA) published an updated methodological guide on risk indicators and detailed risk analysis tools. The updated guide includes additional indicators based on IFRS 9 information, as well as other indicators to better understand institutions’ profitability, exposures to sovereign counterparties and own funds requirements for operational risk, among others. This updated guide is based on the EBA reporting framework version 2.8, applicable from December 2018 onwards.…
On 20 March 2019, there was published in the Official Journal of the EU (OJ): Recommendation of the European Systemic Risk Board of 15 January 2019 amending Recommendation ESRB/2015/2 on the assessment of cross-border effects of and voluntary reciprocity for macro-prudential policy measures. This Recommendation amends Recommendation ESRB/2015/2 by recommending that relevant authorities reciprocate certain specified macro-prudential policy measures that have been adopted by the relevant authorities in Belgium, Estonia, Finland, France and Sweden; Commission
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 20 March 2019, the Basel Committee on Banking Supervision (Basel Committee) published the results of its Basel III monitoring exercise, based on data as of 30 June 2018. Data is provided for a total of 189 banks, including 106 large internationally active banks. These “Group 1” banks are defined as internationally active banks that have Tier 1 capital of more than €3 billion, and include all 29 institutions that have been designated as…
On 19 March 2019, the Bank of England’s Working Group on Sterling Risk-Free Reference Rates published a discussion paper on conventions for referencing SONIA in new contracts. The discussion paper is intended to raise market awareness of the identified conventions for referencing SONIA. The discussion paper has been divided into three parts: Section 1 is a summary of conventions that already exist in SONIA-referencing markets; Section 2 outlines considerations for new products referencing SONIA; and…
On 19 March 2019, the FCA published a technical communication on the operation of the MiFIR transparency regime post-Brexit, sitting alongside its supervisory statement on the same topic (our blog on this is here). The technical communication sets out technical details on: the contents of the FCA Financial Instrument Transparency System which is due to go live on 1 April 2019 in the event of a no deal on 29 March 2019; the file…
On 19 March 2019, the Joint Money Laundering Steering Group (JMLSG) published the text of proposed revisions to part II of its guidance on the prevention of money laundering and the financing of terrorism for the UK financial services industry. The proposed revisions impact two sectors, ‘credit unions’ (sector 4) and ‘brokerage services to funds’ (sector 20). The deadline for comments on the proposals is 18 April 2019.…
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…