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EU’s first step towards gross margin for CCPs

On 2 October 2015, ESMA published the non-confidential replies to its Discussion Paper – Review of Article 26 of the RTS on requirements for central counterparties (No 153/2013). The paper[1] focused on the timing necessary for a CCP and the level of margins available at CCP level to complete the transfer or liquidation of the […]

Collect-centric Singapore margin rules

On 1 October 2015, the Monetary Authority of Singapore (MAS) published its Policy Consultation on margin requirements for non-centrally cleared derivatives. In its broad outline, the Singapore regime would be similar to the internationally agreed BCBS-IOSCO Margin requirements for non-centrally cleared derivatives. That is not to say that entities in Singapore will avert all friction with […]

ISDA catches the wave of Aussie mono-reporting

On 24 September 2015, ISDA published the Australian single-sided reporting letter. The reporting regime in Australia was phased-in from 1 October 2013 and initially provided for double-sided reporting only. The Australian Treasury brought amendments with effect from 1 October 2015 to permit single-sided reporting for certain entities about to fall under the reporting obligation. The […]

Crestsign v Natwest (2015) – Confidential settlement denies mis-selling clarification opportunity

Crestsign Ltd v National Westminster Bank Plc & Another [2015] EWCA Civ 986 On 24 September 2015, the transcript of a judgment of the Court of Appeal on the renewed application for permission to appeal in Crestsign Limited v NatWest & RBS was published (co-defendants, referred to together as the ‘bank’). By way of background, […]

CCP Workplan: end of the beginning for recovery and resolution

On 22 September 2015, the all-stars of international standard-setting bodies released the 2015 CCP Workplan (dated 15 April 2015), along with a Progress Report. The Workplan was presented to the FSB Steering Committee by the Chairs of the FSB Standing Committee on Supervisory and Regulatory Cooperation, the FSB Resolution Steering Group, the Committee on Payments […]

ISDA 2014 Resolution Stay Protocol stayed

On 26 August 2015, ISDA announced that the 2014 Stay Protocol is to undergo revisions. Although it remains open, it is not expected that any market participant would adhere at this time. On the same day, in its comment to the PRA Consultation Paper on contractual stays in financial contracts governed by third-country law, ISDA […]

Porting to backup clearing member: an unbreakable pact?

On 13 August 2015, ESMA published the Emir Review Report no.3 – Review on the segregation on portability requirements, presenting an overview of the issues encountered during EMIR implementation. The Review covered the legal and regulatory, operational, technical and financial aspects of segregation and portability, suggesting clarifications and more granular requirements on a number of […]

FCA finds oversights in benchmark oversight

On 29 July 2015, the FCA published the Financial Benchmarks: Thematic review of oversight and controls. Based on a sample of 14 banks and broking firms, the review exposes the uneven development of internal processes in relation to benchmarks. Good, bad and ugly practices are presented for a wide range of benchmark-related activities[1]. The broad […]

BoE roundtrip on CCP interoperability arrangements

On 15 July 2015, the Bank of England published the summary of feedback received and policy response to the implementation of ESMA’s Guidelines and Recommendations on CCP interoperability arrangements. The Consultation Paper was published on 20 November 2014, seeking comments on a shortlist of five specific issues. The paper noted that the market practice essentially followed […]

CCP interoperability arrangements: ETD 1, OTC 0

On 1 July 2015, ESMA published a Final report on the extension of the scope of interoperability arrangements, from transferable securities and money-market instruments to derivatives. Under interoperability arrangements, two or more CCPs offer a cross-system execution of transactions. Current arrangements exist for EU equities, EU government bonds and Exchange Traded Derivatives. Title V of […]

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