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Benchmark Bother
Overshadowed by the MiFID 2 regulatory colossus, the start of the year also marked the coming into force of the EU’s Benchmark Regulation (BMR). As well as defining and categorising benchmarks, the BMR lays down obligations that affect both administrators and users, requiring firms to prepare written plans detailing their response to the cessation, material […]
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Prudential Regulators to exempt QFC amends from Margin Rules
On 5 February the five US Prudential Regulators jointly issued a proposal to ensure that certain mandatory amendments to legacy contracts would not trigger their inclusion under the margin regime. The vast majority of jurisdictions contain anti-evasion measures in their margin rules, to the effect that material amendments to pre-margin, legacy trades will act to […]
Dexia v Comune di Prato (2017) – When in Rome, do as the Court of Appeal says
Dexia Crediop SPA v Comune di Prato [2017] EWCA Civ 428, and subsequent UKSC refusal of leave to appeal On 18 January the Supreme Court closed the curtain on the long-running Dexia Crediop SpA v Comune di Prato saga. The Court refused leave for the municipality (Prato) to appeal the 15 June 2017 Court of […]
Custody 101
We are pleased to welcome Torsten Krebs as an author on the DRS site. With over 27 years experience in international custody regulation, Torsten is DRS’ main expert in custody and related matters. He has just published the first in a short series of articles – Custody 101- aiming to give an introduction to the […]
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 […]
Ding Dong Merrily…
Merry Christmas and a Happy New Year to all our readers! Early 2018 will bring DRS a shiny new website- instant insight, extensive training materials and more compelling content all round. We intend it to become the reference site for all derivatives documentation news and issues as well as a highly valuable resource for BAU […]
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: […]
FFX Margin- the far off sound of a fat lady singing
The will they-won’t they soap opera of European FFX margin regulation is likely drawing to a close. As promised in their 24 November announcement, the three European Supervisory Authorities (ESMA, EBA and EIOPA) published a draft amendment to the EMIR Margin RTS. The amendment does clarify matters by excising the announcement’s “most likely”, confirming that […]
ESMA updates EMIR Level 3- mainly reporting
ESMA updated its EMIR Q&A and MiFID 2 Q&A on Post-Trading Issues yesterday 14 December 2017. The updated Q&As include clarification in relation to: Indirect clearing – Q&A amended for both EMIR and MiFID 2 Post-Trading Issues; Swap reporting to trade repositories; Reporting of collateral; and Reporting of contracts with no maturity The guidance in […]
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 […]