Author: Simon Lafrance
EBA tries, tries, tries again with CRR and CRD IV
On 1 August 2014, EBA published its revised Q&A on supervisory reporting under CRR and CRD IV. The revision is mostly cosmetic. The references to the draft ITS on supervisory reporting are replaced with a reference to the corresponding ITS which was officially published on 28 June 2014 in the OJ. Before the ink even […]
Clearing Addendum Annex with a little “je-ne-sais-quoi”
On 1 August 2014, ISDA and the Fédération Bancaire Française (FBF) published an Addendum Annex to the ISDA/FOA Client Cleared OTC Derivatives Addendum. The annex has been prepared for use with the ISDA/FOA Client Cleared OTC Derivatives Addendum in order to achieve a better connection with the AFB or FBF Master Agreements. In particular, adjustments […]
Execution of best execution
The FCA published on 31 July 2014 a Thematic Review on best execution and payment for order flow (PFOF). PFOF arrangements compromise compliance with best execution requirement, a key concept of MiFID. The FCA found that some of the firms maintained PFOF arrangements with market makers, in contravention with the Finalised Guidance published in 2012. […]
Senior managers gripped by the regulators’ claws
On 30 July 2014, the FCA and PRA published a joint consultation paper on the new regulatory framework for individuals, along with one on new remuneration rules. New regulatory framework for individuals By pointing the finger pre-emptively at a select group of individuals (the “Senior Managers”), the regulators hope that the senior managers will behave […]
Singapore’s benchmark Sling diluted
On 29 July 2014, the Monetary Authority of Singapore (MAS) published a consultation paper on the proposed regulation for financial benchmarks, along with a response to the feedback received during the initial phase of public consultation held in 2013. The proposed regulation on financial benchmarks in Singapore is unmistakably an offshoot from the FCA’s approach […]
Clock is ticking for paper share certificates
On 23 July 2014, the Council announced that it adopted the Regulation on improving securities settlement and regulating central securities depositories (CSDs). This is the most recent step towards the establishment of a single European securities market. The regulation is expected to be published in the Official Journal in Q3 2014. By 1 January 2015, T+2 settlement […]
Flagship benchmarks benchmarked
On 22 July, IOSCO published a Review of the implementation of the principles on financial benchmarks by the administrators of Euribor, Libor and Tibor. The 150 page review covers the degree of implementation of the principles as of 11 April 2014, only seven months after the final principles were released. The significance of these three […]
EBA’s guess is 200 O-SIIs
On 18 July 2014, the EBA published a Consultation Paper on the Guidelines to assess other systemically important institutions (O-SIIs). O-SIIs represent the EU implementation of the BCBS’ domestic systemically important banks (D-SIBs). Contrary to G-SIBs, the D-SIBs classification allows for considerable discretion by national authorities. Accordingly, a basket of optional indicators is available in […]
MAR is half man, half machine
On 11 and 15 July, ESMA published two Consultation Papers on the Market Abuse Regulation (MAR). Both papers represent a follow-up of the Discussion Paper dated 14 November 2013 on policy orientations, which contained an extensive list of 113 exploratory questions. The Consultation Paper of 11 July focuses on technical advice that ESMA proposes to […]
FX benchmarks to seek IOSCO’s blessing
On 15 July, the FSB’s Foreign Exchange Benchmark Group published an interim report on FX benchmarks. Responses should be sent by 12 August. The report focuses on the two pre-eminent FX benchmarks: the World Markets Co/Reuters (WMR) 4pm London fix and the euro foreign exchanges rates set by the European Central Bank (ECB). WMR publishes […]