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Bailey’s freshest tips for the Brexit Break-Up

Earlier this week, the Chief Executive of the FCA, Andrew Bailey provided us with a recent update about the current state of affairs regarding Brexit. As is fast becoming the norm in Bailey’s Brexit updates, he opened his speech with the progress that has been made thus far; the Temporary Transitional Power regime; the signing […]

MiFID 2 Inducements Q&A updated

Article 13 Inducements of the MiFID II Delegated Directive has created a wide diversity of reactions from puzzled head-scratching to fearful wailing from the equity analyst community. Readers will be aware that research must now be classified as paid-for and justified Research or essentially advertising that may be received for free. The Research to Marketing […]

MiFIR packaged trades all wrapped up

ESMA has published an opinion on the treatment of packaged trades under MiFIR’s Article 32 trading obligation. Article 28 mandates that derivatives subject to the trading obligation (TO) are traded regulated markets, OTFs, MTFs or third country equivalents. There has been widespread concern with regard to packaged trades, the elements of which are best traded […]

Yet another Brexit article – life cycle events

Although we are reluctant to contribute to the now well-established industry of Brexit crystal ball-gazing, there are a number of documentation issues in which there is at least enough certainty to formulate the questions; definitive answers will attend the daily twists and turns of politics. These issues include: the future status of trade lifecycle events, […]

MiFIR trading obligation Post-It

ESMA has published the official register for the Trading Obligation for derivatives under MiFIR.  Although not quite in time for the commencement of the obligation, the register lays out: the derivatives classes subject to the obligation, the applicable trading venues, jurisdictions for which equivalence has been granted and the start dates for Categories 1-4. The register will […]

No LEI – No Problemo

ESMA has delivered a Christmas surprise in the shape of a six month forbearance period in respect of LEIs under MiFIR. Article 13(2) MiFIR prohibits an investment firm from transacting any reportable trade with a client, without first obtaining their LEI. The gift horse’s dentistry is not entirely flawless, the following condition must be met: […]

US, HK and OZ join the MIFID 2 circle of trust

In another last-minute MiFID 2 fix, the EC yesterday adopted decisions recognising the equivalent status of securities exchanges in Australia, Hong Kong and the US. “It is important that European firms can trade shares on international markets. Access to major international trading venues will boost the EU’s competitive position as a financial center,” the EU executive’s vice […]

FCA issues FFX outlook- fog confirmed

The FCA have today issued their response to the ESAs 24 November FFX announcement. It is brief and is worth reading in full as a masterclass in ironic prevarication and understatement. Highlights below (emboldening is ours): “The amendments to the RTS should become increasingly clear over time and we would expect firms to make their […]

All Change Please!! First Look at New EBA Investment Firm Prudential Framework

Introduction On 29 September 2017, the European Banking Authority (EBA) published an opinion on the design of a new prudential framework for investment firms. The new regime will apply to all MiFID firms, including those that will be brought into scope by MiFID II. The EBA makes a total of 62 recommendations in the following […]

SEFs+DCMs=MTFs+OTFs

The transatlantic trading platform cousins have officially been recognised as twins, on 5 November the European Commission announced its long-promised equivalence decision in respect of U.S. swap execution facilities. The CFTC plans to reciprocate by exempting MTFs and OTFs from U.S. registration requirements. The mutual recognition comes just in time before the 3 January 2018 […]

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