ECB speech moved markets. Bloomberg recounted how the remarks of European Central Bank (ECB) Executive Board member Benoit Coeure made at a conference provided attendees with market-moving news regarding the ECB’s bond-purchasing program the evening before that information was made public. (5/19/2015) Moving markets.
ESMA publishes rating information. The European Securities and Markets Authority (ESMA) published the rating information of HR Ratings de México, S.A. de C.V in the central repository. (5/19/2015) ESMA notice.
Guidelines for cross-selling practices. The Joint Committee of the European Supervisory Authorities (ESA) published guidelines on how EU firms engaged in cross-selling practices in the financial sector should comply with the general conduct of business standards expected towards customers. (5/13/2015) EBA guidelines for cross-selling practices.
EBA consults on the valuation of derivatives in resolution. The European Banking Authority (EBA) launched a consultation on draft Regulatory Technical Standards (RTS) that would define the valuation of derivative liabilities for the purpose of bail-in in resolution. Comments should be submitted by August 13, 2015. (5/13/2015) EBA press release.
EBA updates list of closely correlated currencies. The EBA updated the list of closely correlated currencies that was published in December 2013 as part of the implementing technical standards (ITS) that were drafted for the purpose of calculating the capital requirements for foreign-exchange risk according to the standardized rules. (5/13/2015) EBA press release.
ESMA updates AIFMD guidance. The European Securities and Markets Authority (ESMA) published updated questions and answers on the application of the Alternative Investment Fund Managers Directive. The update includes new questions and answers on reporting and calculation of leverage. (5/12/2015)ESMA notice.
ESA securitization recommendations. The Joint Committee of the ESA published a report detailing its findings and recommendations regarding the disclosure requirements and obligations relating to due diligence, supervisory reporting and retention rules in existing EU law on Structured Finance Instruments. (5/12/2015)ESMA notice.
EBA consults on specialized lending exposures. The EBA launched a consultation on RTS for specialized lending exposures. The proposed RTS aim to specify how institutions should take into account several factors when assigning risk weights to specialized lending exposures and how they should treat these factors. Comments should be submitted by August 11, 2015. (5/11/2015) EBA press release.
ESMA consults on central clearing for interest rate swaps. ESMA opened a consultation on proposed RTS on the clearing obligation under Regulation (EU) No 648/2012 of the European Parliament and Council on OTC derivatives, central counterparties and trade repositories (EMIR). The consultation establishes a clearing obligation on additional classes of OTC interest rate derivatives that were not included in the first RTS on the clearing obligation for interest rate swaps. Comments should be submitted by July 15, 2015. (5/11/2015) ESMA notice.
EBA guidelines on triggers for the use of early intervention measures. The EBA published its final Guidelines on triggers for the use of early intervention measures. The Guidelines aim at promoting convergence of supervisory practices in relation to the application of early intervention measures as provided for in the Bank Recovery and Resolution Directive (BRRD). The Guidelines establish a link between the on-going supervision conducted by the Competent Authorities according to the Capital Requirement Directive and the early intervention powers set out in the BRRD. (5/8/2015) EBA press release.
EBA consults on ITS for credit assessments. The EBA launched a consultation on draft ITS on the mapping of External Credit Assessment Institutions’ credit assessments for securitization positions. These ITS will be part of the Single Rulebook in banking aimed at enhancing regulatory harmonization across the European Union and will allow the credit ratings of all registered credit rating agencies to be used for the purposes of calculating capital requirements. Comments should be submitted by August 7, 2015. (5/7/2015) EBA press release.
EBA guidelines on recovery indicators. The EBA published final Guidelines on indicators for the recovery and resolution plans of credit institutions and investment firms across the EU. These provide the minimum list of qualitative and quantitative indicators that institutions should include in their recovery plans and will function as triggers for the recovery plans, as prescribed by the EU’s BRRD. (5/6/2015) EBA press release.
ESMA clarifies definition of commodity derivatives. ESMA published guidelines on the Markets in Financial Instruments Directive (MiFID) I. The guidelines provide a common, uniform and consistent application of the definitions of commodity derivatives under C6 and C7 of Annex I of the current MiFID I, until MiFID II comes into force on January 3, 2017. The guidelines apply from August 7, 2015, and will be superseded by the European Commission’s delegated acts on MIFID II. (5/6/2015) ESMA notice.