Tracker, Financial Services Regulation & Compliance - Investment Firms


Central Bank of Ireland publishes Q&A on the Transparency Regulatory Framework

On 25 November, the Central Bank published the first edition of its Q&A on the "Transparency Regulatory Framework". The document provides guidance in relation to the Transparency (Directive 2004/109/EC) Regulations 2007 (as amended). The Q&A has been issued following the Central Bank's publication of updated Transparency Rules on 4 November, as outlined above.

Central Bank of Ireland publishes Feedback Statement on Consultation on the Central Bank Investment Firms Regulations 2015

On 4 November 2015 the Central Bank published a Consultation Paper on Investment Firms Regulations 2015 seeking input from stakeholders on the proposed regulations. This Feedback Statement summarises the responses received to that Consultation. The Investment Firm Regulations are expected to be published in early 2017 and the Central Bank intends publishing guidance to accompany the regulations.



European Banking Authority launches Consultation on designing a new prudential regime for investment firms

The discussion paper published by the EBA on 4 November 2016 focuses on MiFID investment firms and places particular focus on the risks that investment firms pose to customers and to market integrity and liquidity. Public consultation on the discussion paper will last until 2 February 2017.

European Commission publishes Delegated Regulation supplementing the Capital Requirements Regulation and amending EMIR

The Delegated Regulation which supplements the CRR (Regulation (EU) No 575/2013) on prudential requirements for credit institutions and investment firms and amending EMIR (Regulation (EU) No 648/2012) determines firstly, the method for the measurement of the additional collateral outflows resulting from the impact of an adverse market scenario on institutions’ derivative transactions and secondly, the threshold above which an institution’s derivative transactions must be considered material.

European Securities and Markets Authority publishes Q&A on MiFID II and MiFIR transparency topics

The Q&A, published on 04 November 2016, focused on the double volume cap mechanism and the systematic internaliser regime.

ESMA publishes opinion on common indicators for new products and services under EMIR

ESMA adopted the opinion to ensure a more consistent application of Article 15 and 49 of EMIR (Regulation (EU) No 648/2012) and to guide authorities competent for the supervision of central counterparties in identifying planned new activities and services which qualify as “additional” and therefore require an extension of authorisation under Article 15 or changes which qualify as “significant” and therefore trigger the procedure under Article 49.

ESMA publishes its final report on the clearing obligation for financial counterparties with a limited volume of activity

The final report incorporates the feedback received to the consultation on the issues facing some financial counterparties with a limited volume of activity who are facing difficulties in preparing for the clearing obligation and explains the reasons for reflecting or not the stakeholders’ proposals to the draft regulatory technical standards.

European Commission adopts measures to implement rules on central securities

The European Commission has adopted a package of six legislative acts to implement specific provisions of the Central Securities Depositories Regulation (CSDR). This framework sets out a series of rules for systemically important securities infrastructures (trading venues, central counterparties, trade repositories and central securities depositories). In particular, the CSDR regulates the timing and conduct of securities settlement. The legislative acts include a Commission Delegated act, Regulatory Technical Standards and Implementing Technical Standards.

ESMA publishes updated Q&A on MiFID II and MiFIR transparency topics

On 18 November, ESMA published an updated Q&A document on MiFID II and MiFIR transparency topics. This update follows ESMA's publication of a Q&A on the same topic on 4 November. The latest update relates to pre-trade transparency waivers under MiFID I and the waiver procedure for illiquid non-equity financial instruments.

ESMA publishes Q&A on MiFID II and MiFIR market structures topics

On 18 November, ESMA published a Q&A document on MiFID II and MiFIR market structures topics. This document is intended to promote common supervisory approaches in the implementation of MiFID II and MiFIR across the Member States of the EU.

European Commission publishes three sets of Regulatory Technical Standards supplementing MiFIR

The European Commission has published three Delegated Regulations supplementing MiFIR (Regulation (EU) 600/2014) with regard to RTS. The first, Commission Delegated Regulation (EU) 2016/2020, implements RTS on criteria for determining whether derivatives subject to the clearing obligation should be subject to the trading obligation. The second, Commission Delegated Regulation (EU) 2016/2021, implements RTS on access in respect of benchmarks. The third, Commission Delegated Regulation (EU) 2016/2022, implements RTS concerning the information for registration of third- country firms and the format of information to be provided to the clients.

EFAMA publishes response to ESMA discussion Paper on the trading obligation for derivatives under MiFIR

The European Funds and Asset Management Association has published its response to the ESMA Discussion Paper on the trading obligation for derivatives under MiFIR (Regulation (EU) 600/2014). The Discussion Paper was issued in September and sought stakeholders’ views on ESMA’s first proposals of how to implement the trading obligation for derivatives as foreseen in Articles 28 and 32 of MiFIR.

European Commission publishes proposal for a Regulation on a framework for the recovery and resolution of central counterparties

On 25 November, the European Commission published its proposal for a Regulation of the European Parliament and Council on on a framework for the recovery and resolution of central counterparties (CCPs) and amending Regulations (EU) No 1095/2010, (EU) No 648/2012, and (EU) 2015/2365. The proposal acknowledges the importance of CCPs in the European financial system and seeks to implement harmonised rules for situations where CCPs face "severe distress" in a crisis situation, beyond that envisaged by EMIR. If implemented, this regime will incentivise less risky behaviour by CCPs and market participants.

The Commission has also published two accompanying documents with the proposal, a FAQ and a press release summarizing the proposal.

European Securities and Markets Authority (ESMA) has finalised its technical advice to the European Commission on important aspects of future rules for benchmarks

In particular, ESMA provides advice on how benchmarks’ reference values can be calculated by using data reporting structures under existing EU rules such as MiFID II and EMIR; some of the criteria for deciding when third country benchmarks can be endorsed for use in the European Union (EU); and what constitutes making a benchmark figure available to the public.

European Securities and Markets Authority publishes consultation paper on the draft Regulatory Technical Standard on package orders for which there is a liquid market

The Regulatory Technical Standard purpose is to establish a methodology for determining whether there is a liquid market for a package order as a whole. The consultation will run until 03 January 2017.

European Securities and Markets Authority publishes Technical Reporting Instructions on MiFIR Transaction Reporting

The Technical Reporting Instructions describes the elements of the interface that will be built between competent authorities and submitting entities in their Member States.

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

Date published: 06 Dec 2016