Introduction Article 55 of the BRRD requires Member States to ensure that in-scope institutions include a contractual term by which the creditor or party to the agreement creating a liability recognises that the liability in question may be subject to the write-down and conversion powers within the BRRD and agrees to be bound by any […]

On 28 April 2016, the European Parliament adopted the EU benchmark regulation in plenary session. The next step is the formal adoption by the Council, expected in May 2016 and the publication in the official journal. The provisional edition of the adopted text can be found here. [Update: the Council of the EU has published the final […]

On 25 April 2016, the EBA published a consolidated list of other systemically important institutions (O-SIIs) across the EU, also known as domestic systemically important banks (D-SIBs). The list contains close to 200 institutions, with the majority of member states imposing an additional O-SII buffer under CRD IV to reflect their systemic importance. This buffer can […]

ISDA has yesterday published its long-awaited 2016 Credit Support Annex for Variation Margin for use with New York law. The VM security-interest CSA is the first in a series of new market-standard documentation and will be joined by VM CSAs under English and Japanese law, IM CSAs and a protocol to assist amendment of legacy documents. […]

A consortium of trade bodies yesterday published a statement to assist with SFTR compliance. The Association for Financial Markets in Europe (AFME), FIA, the International Capital Market Association (ICMA), the International Swaps and Derivatives Association, Inc. (ISDA) and the International Securities Lending Association (ISLA) have jointly developed a template which market participants may use to […]

The Federal Reserve and the FDIC announced today that the living wills of five large American banks are determined as “non-credible”. Citigroup’s was the sole systemically-important bank whose submission passed the scrutiny of both Regulators. Bank of America, Bank of New York Mellon, JPMorgan, State Street and Wells Fargo each have until 1 October 2016 […]

ISDA has published an updated EMIR classification letter. The letter amends the July 2015 version to align with the final draft RTS on CDS clearing and on IRS clearing in certain additional EEA currencies. The letter also amends the definition of “Category 1 entity” to accord with the final G-4 IRS RTS. Further amendments will […]

Austria yesterday became the first country to exercise full powers conferred by the BRRD. The Financial Market Authority (FMA) as the resolution authority under the Bank Recovery and Resolution Act (BaSAG – Bundesgesetz über die Sanierung und Abwicklung von Banken) applied the following resolution measures to HETA: 100% bail-in of all subordinated liabilities 98% of […]

As expected, the European Parliament yesterday approved the inaptly-titled MiFID II “quick fix”, ratifying the one year delay in its application date. The ECON committee used the opportunity to vote for the following specific amendments: a particular transparency regime for packaged transactions, a clarification of the own account exemption and the exemption of securities financing […]