Financial Services Regulation & Compliance - Investment Firms July 2018


CBI publishes article on Irish Government Investment, Financing and the Public Capital Stock

The CBI has published a signed article on "Irish Government Investment, Financing and the Public Capital Stock." The article analyses the plans for higher investment spending by the Irish government, and finds that increased investment leads to higher economic output in the long term. The article states that the budget neutral approach avoids a build-up of public debt.


ESMA publishes 2017 Annual Report

ESMA has published its Annual Report for 2017. Its priorities for 2017 included implementing MiFID II and MiFIR, improving data quality, supervising credit rating agencies and trade repositories, regulating Benchmarks and moving towards a Capital Markets Union.  

ESMA issues latest double volume cap data

ESMA updated its public register in July with the latest set of double volume cap (DVC) data under MiFID II.The updates included DVC data and calculations for the period of 1 June 2017 to 31 May 2018 as well as updates to already published DVC periods. 

ESMA reminds UK-based regulated entities about timely submission of authorisation applications

ESMA has issued a Public Statement in order to raise the awareness of all market participants on the importance of preparing for the possibility of no agreement in the context of the United Kingdom withdrawing from the European Union. As there is no assurance that a transition period will be agreed upon, entities need to consider the scenario where a hard Brexit would take place on 30 March 2019.

ESMA updates Q&As on temporary product intervention measures

ESMA has today updated its Questions and Answers on ESMA’s temporary product intervention measures on the marketing, distribution or sale of CFDs and binary options to retail clients based on Article 40 of Regulation (EU) No 600/2014 (the Markets in Financial Instruments Regulation (MiFIR)). The Q&A provides clarification on the application of the temporary product intervention measures on clients established outside the Union and non-Union nationals.

ESMA consults on tick size regime applicable to third country instruments

ESMA has published a Consultation Paper on amendments to the tick size regime. The calibration of minimum tick size applicable to shares and depositary receipts to average daily number of transactions on the most liquid market in the EU may not be well suited to third country instruments where the most liquid trading venue is based outside the EU. This proposal attempts to ensure that tick sizes applicable to third country instruments are correctly calibrated. ESMA will consider all feedback received by 7 September 2018.  

ESMA updates Q&As

ESMA has updated the Questions and Answers for the following topics:

  • MiFID II and MiFIR investor protection and intermediaries topics
  • MiFID II and MiFIR transparency topics
  • The Benchmarking regulation
  • EMIR data reporting; and
  • The implementation of the Regulation (EU) No 648/2012 on over-the-counter (OTC) derivatives, central counterparties and trade repositories

Commission publishes communication on protection of cross-border EU investments

The guidance aims to confirm to investors that they are adequately protected by EU law even in the absence of intra-EU investment treaties. The publication details the protection under EU law and ensures national authorities and investors are aware of existing investors' rights within the EU.

ESMA launches template for systematic internalisers calculations before August 1 publication

ESMA has published a template before its August 1 publication that will be used to publish the set of figures needed to assess whether specific investment firms are systematic internalisers in specific financial instruments. Interested parties called on ESMA to make this information available earlier than August 1 so the parties could adapt to the new format.

ESMA publishes follow-up report regarding oversight by NCAs of the MiFID suitability requirements

The report analyses the actions ten NCAs undertook since 2016. The report highlights improvements that could be taken in relation to supervision. ESMA encourages enhanced supervision and enforcement by NCAs to guarantee high level compliance across the Union with MiFID suitability requirements.

Results issued of the June 2018 survey into credit terms and conditions in euro-dominated securities financing and OTC derivatives markets

The June 2018 survey was based on qualitative information on changes between March and May 2018. Credit terms had the largest tightening in a year as those who took part in the survey expected price and non-price conditions to tighten even more.

For further information please contact a member of the Financial Regulation team.

Date Published: 13 August 2018