Author: Simon Lafrance
EMIR CCP authorisation extended for CME
On 9 January 2015, CME Clearing Europe Ltd became the first central counterparty (CCP) to be granted an extension of authorisation under EMIR. The extension covers assets that are not MiFID financial instruments, specifically Commodities, Emission/Climatic, Freight. Only European Commodity Clearing and Keler CCP have also been authorised for this class.
UK benchmark regulation spreads beyond LIBOR
On 22 December 2014, HM Treasury confirmed it will follow the recommendations of the Fair and Effective Markets Review (FEMR) and extend the LIBOR regulatory and supervisory framework to seven other major benchmarks: Sterling Overnight Index Average (SONIA) Repurchase Overnight Index Average (RONIA) ISDAFix WM/Reuters (WMR) London 4pm Closing Spot Rate London Gold Fix (soon […]
A glimpse of the 2015 EU benchmark regulation
The European Parliament’s Committee on Economic and Monetary Affairs (ECON) published its draft report on the proposed benchmark regulation, dated 11 December 2014. The report contains 247 amendments to the proposal[1], illustrating the large amount of work that still needs to be done in 2015 before the regulation is adopted. ECON shows progress on the […]
A way for non-EU benchmarks to keep a toehold in the EU?
The Presidency of the Council of the EU published the last compromise proposal for regulation of benchmarks, dated 21 November 2014. On that same day, the chairman of the CFTC criticised the EU benchmark initiative as it left no viable space to foreign benchmarks within the EU. Yet, from a version to another, the series […]
Cross-currency collateral ousted from SCSA 2
On 6 November 2014, ISDA released the 2014 “Standard” Credit Support Annex, available as always under English law or New York law. This new CSA is meant to coexist with the legacy 1994 CSA and the already out-of-fashion 2013 CSA published only a year ago. What was presented as a tour de force in the […]
EU on benchmarks – L’Enfer, c’est les autres
On 27 October 2014, the Fair and Effective Markets Review (FEMR) in the UK published a consultation paper on fixed income, currency and commodities (FICC) markets, with a section dedicated to benchmarks. The Review is led by staff from the HM Treasury, the Bank of England and the FCA. On the same day, the Council […]
The LIBOR of a thousand faces
On 20 October 2014, ICE Benchmark Administration (IBA) published a position paper on the evolution of ICE LIBOR. The paper moves past the issues of manipulation and envisions a root and branch reform of the methodology. As the new administrator of LIBOR since 3 February 2014, IBA found that each benchmark submitter has developed its […]
The WM/Reuters 4 pm London fix caught pants down
On 30 September 2014, the FSB published the Final Report on Foreign Exchange Benchmarks, along with the Review of the implementation of IOSCO principles on financial benchmarks in connection with the WM/Reuters 4 pm Closing Spot Rate. Final Report on FX Benchmarks The Final Report contains 15 broad recommendations, covering: WM/Reuters 4pm London fix Central […]
EC`s mission impossible for ESMA
On 26 September 2014, ESMA published a consultation paper on the technical advice to the European Commission on delegated acts required by the UCITS V directive. The consultation paper covers advice on two topics: the insolvency protection of UCITS assets when the depositary delegates custody functions to a third party and the independence requirements between […]
Seven benchmarks to join LIBOR on the hot seat
On 25 September 2014, the “Fair and effective markets review” in the UK published its “Recommendations on additional financial benchmarks to be brought into UK regulatory scope” (dated August 2014), along with the consultation document. This interim deliverable focuses on fixed-income, currency and commodity (FICC), UK-based benchmarks i.e. where administrators and contributors are physically located […]