The EC has today extended the third-country CCP transitional regime by one year until 28 June 2022. The transitional regime allows non-EU CCPs to benefit from the significantly lower capital charges applicable to “Qualifying” CCPs (essentially an EU-recognised CCP, 3rd country or EU), as long as they have applied for recognition. The following countries are […]

The UK Govt. Taskforce on Innovation, Growth and Regulatory Reform (TIGRR) published its report 16 June 2021. While it bears no formal relationship with the much beloved AA Milne, possibly later lamented Disney character, the acronym is obviously too tempting- “It’s a dangerous path I bounce… but I bounce it alone. Because the Hundred Acre […]

ISDA have today published the 2021 ISDA Interest Rate Derivatives Definitions. The definitions consolidate the 70+ supplements since 2006 and incorporate the following updates: A new fallback trigger that will take effect if a party is prohibited from using a benchmark Generic fallbacks for those floating rates with no existing fallback provisions A new methodology […]

On 2 June 2021, the PRA and FCA published an open letter reviewing good practice in relation to the commonly-used Delivery vs Payment (DVP) mechanism. DVP is a long-standing market convention, requiring that cash payment for securities is made either very shortly before or simultaneous with delivery of securities. Although an effective mitigant for a […]

ISDA yesterday launched the 2021 Security-based Swaps (SBS) Protocol, aiming to facilitate compliance with the long if not eagerly-awaited SEC SBS rules which largely come into force from 6 October 2021. The Protocol sits alongside the ISDA 2021 SBS Top-Up Protocol published on 15 March 2021. While the top-up protocol amends agreements made by adherents […]

The FCA has issued proposals to partially reverse MiFID II research and best execution requirements. Consultation paper CP 21/9 follows the OJ publication of the EU’s MiFID “Quick Fix”, which went some way to addressing criticism of Research and BestEx rules; the FCA proposals go further, representing a further instance of UK-EU divergence. Best Execution […]

The BRRD includes broad contractual stay powers enabling EEA Regulators to temporarily:  suspend payment/delivery obligations, restrict the enforcement of security interests and suspend termination rights. Affected financial contracts comprise the majority of English law derivatives, repo and securities lending contracts as well as relevant master agreements. On 22 April 2021 the Commission adopted a delegated […]

The Regulatory gap between the UK and the EU underwent some widening yesterday with the Chancellor’s indication that the UK will drop the share trading obligation (STO) and double volume cap (DVC). The somewhat stealthy announcement formed part of Rishi Sunak’s speech at the opening of UK FinTech Week. The short speech focussed on various […]

Japan’s TIBOR administrator (JBATA) has today announced its intention to consult on its intention to discontinue Euroyen TIBOR at the end of December 2024, while continuing to retain JPY TIBOR. As a quick reminder, there are three principal JPY interbank offered rates: JPY LIBOR. FCA jurisdiction. Published at 11.55 a.m. London time. Submitted by a […]