Category: EU Commission
(C)SDR results are in- keep on keeping on repapering
On 2 July 2021, the European Commission (EC) released the results of its February 2021 CSDR consultation. The results will guide the areas of focus for the upcoming Q4 2021 CSDR legislative review. The consultation garnered a relatively high response rate of 91 replies, split across both firms and trade associations, identifying the following as […]
Another day, another LIBOR warning
On 24 June 2021, the EC issued a joint statement with the EBA, ECB and ESMA, warning all market participants to cease their use of any LIBOR settings. The statement reminds readers that the amended BMR has been in force since 13 February 2021, most particularly Art. 23b empowering the EC to designate a replacement rate for […]
BRRD- the other shoe drops
The BRRD includes broad contractual stay powers enabling EEA Regulators to temporarily: suspend payment/delivery obligations, restrict the enforcement of security interests and suspend termination rights. Affected financial contracts comprise the majority of English law derivatives, repo and securities lending contracts as well as relevant master agreements. On 22 April 2021 the Commission adopted a delegated […]
Financial Collateral Directive- have your say
For those lucky few with time to spend participating in regulatory consultations, there are another two potentially material ones to be aware of. 12 February 2021, the EC launched two parallel, but linked[1] consultations on proposed amendments to the Financial Collateral Directive (FCD) and the Settlement Finality Directive (SFD). The FCD was adopted on 6 […]
It’s Official
17 February 2021. Delegated Regulations further amending the EMIR Margin RTS and amending the three Clearing Obligation RTS have today been published in the OJ. They will both enter into force on the following day- 18 February 2021. Amendments to the Margin RTS Extension of equity options derogation until 4 Jan 2024 Extension of intragroup […]
Last minute RTS to be rushed through
The just in time legislative supply chain seems to be still working in the EU. On 21 December, the Commission adopted the two Delegated Regulations amending EMIR Regulatory Technical Standards. The EC have published the RTS today: The Draft Revised Margin RTS (Margin RTS) The Draft Revised Clearing Obligation RTS (Clearing RTS) A quick refresh […]
BRRD 2 Brexited
It’s still early (if seemingly interminable) days, but Brexit bonuses seem to be thin on the ground. At least for UK banks, the disavowal of BRRD 2 may be of some comfort. A recent article (paywalled) in Risk Magazine highlights upcoming UK-EU divergence around BRRD 2. The BRRD sequel comes into force on 28 December […]
Commission to be granted rate-replacement powers
On 30 November 2020, the EU Parliament and Council reached agreement on Commission-proposed amendments to the BMR. In anticipation of LIBOR’s end’ 2021 demise, the amendments give the Commission to power to propose replacement for the benchmark categories: “critical” benchmarks, which influence financial instruments and contracts with an average value of at least €500 billion […]
Third (final) ESA report- brief Brexit novation window
On 23 November 2020, the Joint Committee of the European Supervisory Authorities (ESAs) published a third “final” version of its draft RTS making various amendments to EMIR margining requirements. The draft (re)introduces the following amendments: Levelling the international playing field: An extension of a further three years for the “temporary” exemption from margining requirements for single-stock […]
EC endorse CSDR delay
On 23 October, the European Commission approved ESMA’s amended RTS, delaying the CSDR’s controversial settlement discipline regime until 1 February 2022. The amended RTS can be found here. Having been rubber-stamped by the Commission the RTS now enter the mandated three month period, pending non-objection by the Parliament and the Council. Despite adding to an […]