Risk magazine reports that the EC may extend the date by which ESMA must make a final decision on the equivalence of foreign jurisdictions for clearing under EMIR. A volte-face made all the more surprising by previous intransigence. Lacking such authorisation, CCPs will lose their interim “Qualifying” CCP status; a qualification that confers a capital […]

The FCA and the European Commission (EC) remain encamped on their respective positions regarding the reporting of FX forwards. The FCA resists EC’s view that FX forwards must be brought within the scope of EMIR reporting and central clearing obligations. The FCA maintains that certain FX forwards fall outside the scope of EMIR, evading the […]

In line with last month’s speculation, Risk magazine reports an interview with Michel Barnier, the EC’s head of internal markets, in which he implies that his successor will extend the clearing exemption for pension funds- “I don’t think all the conditions have been met yet to ensure a smooth transition to clearing for pension funds.” […]

The latest chapter[1] in the epic of indecision as to what actually constitutes an FX spot contract comes courtesy of EC Director General Jonathan Faull; ESMA have published his letter to its own Chairman- Steven Maijoor. The confusion stems from a legal hierarchical conflict- while the EMIR regulation defers to MiFID 1 definitions, as a […]

The EC has launched a public consultation to help determine the exact shape of the SRM’s bank levy. The 28 transitional national resolution funds established by the BRRD[1] will be replaced by the Single Resolution Fund (SRF) as of 1 January 2016. SRF “taxes” will be dependent on the size and risk pro-file of each […]

The European Commission has published the responses to its public consultation on FX financial instruments. The April 2013 consultation sought to gauge stakeholder opinion concerning the distinction between an FX financial instrument and a spot FX contract. This delineation has significant implications; a contract which is considered a financial instrument is subject to MiFID requirements. Furthermore, […]

The FT reports that the EU is threatening to effectively derail the Transatlantic Trade and Investment Partnership (TTIP) talks, unless the US includes coordination of financial regulation as part of the package. Leaked documents confirm that the EU intends to up the ante by excluding discussion on all financial services, a move that would significantly […]

The EC has extended the transition period during which banks may apply lower capital charges to those CCPs not yet authorised under EMIR. CCPs will continue to be regarded as QCCPs for Capital Requirements Regulation (CRR) purposes until 15 December 2014. Article 497(3) of CRR allows the Commission to adopt an implementing act to extend […]

Signalling the next step in the protracted implementation of MiFID II/ MiFIR, the European Commission has published its request to the EBA (dated 16th May) for technical advice regarding intervention powers for structured deposits. This follows a 23rd April Mandate to ESMA for technical advice, as summarised in our earlier blog post. As MiFIR establishes a […]