On 19 December 2012, the European Commission published a press release confirming that it had adopted nine regulatory and implementing technical standards under EMIR. The regulatory technical standards will be published in the Official Journal of the European Union immediately following the receipt of ‘non-objection’ from the EU Parliament and Council. Both institutions have one […]

Introduction On 17 October 2012, HM Treasury published a summary of responses received to its August 2012 consultation paper, entitled “Financial Section Resolution: Broadening the Regime” (the “Consultation Paper”).  Broadly, the Consultation Paper had proposed the widening of resolution regimes to systemically important non-banks, specifically: Investment firms and parent undertakings; Central counterparties (CCPs); Non-CCP financial […]

I have been asked whether we have a summary of the CPSS/IOSCO consultation on RRP for FMI that was published in July of this year.  We do, and it is provided below. All the best Michael. Introduction On 31 July 2012, the Committee on Payment and Settlement Systems (CPSS) and the Board of the International […]

Introduction On 5 October 2012, the European Commission published a consultation paper on a possible recovery and resolution framework for financial institutions other than banks.  The aim of the consultation is to ensure that all nonbank financial institutions the failure of which could threaten financial stability are capable of being resolved in an orderly manner […]

On 26 September 2012, the European Banking Authority (EBA) adopted draft regulatory technical standards (RTS) on capital requirements for CCPs under EMIR. The draft RTS require that CCPs hold capital, including retained earnings and reserves, that is at all times at least equal to the sum of: the CCP’s gross operational expenses during an appropriate […]

On 31 July 2012, in accordance with Article 46(3) of EMIR, the European Systemic Risk Board (“ESRB”) submitted advice to the European Securities and Markets Authority (“ESMA”) regarding: the type of eligible collateral that can be considered highly liquid; the haircuts to apply to asset values; and the conditions under which commercial bank guarantees may […]

On 31 July 2012, the European Systemic Risk Board (“ESRB”) submitted advice to the European Securities and Markets Authority (“ESMA”) on aspects of the draft regulatory technical standards (“RTS”) that ESMA is required to submit to the EU Commission under Article 10(4) of EMIR regarding: criteria for establishing which OTC derivative contracts are objectively measurable […]

On 1 August 2012, HM Treasury published a consultation document entitled “Financial sector resolution: broadening the regime”.  Citing the collapses of Bear Stearns (an investment firm) and AIG (an insurer), the UK Government is reviewing the need to establish a resolution regime framework for non-banks on a more accelerated timetable than that currently envisaged in […]

Introduction On 25 July 2012, the European Association of Central Counterparty Clearing Houses (“EACH”) published a response document to the EU proposal for a directive on bank recovery and resolution (the “RRP Directive”).  The response document provides an interesting insight into the aspects of RRP which are of significance to a CCP. EACH fully supports […]