Participants in the Financial Markets Regulatory Dialogue (FMRD) met on 18 September 2015 to exchange information on regulatory developments as part of their ongoing dialogue. The next FMRD meeting will take place in Washington, D.C., in February 2016.
EU participants presented the outlines of the EU’s efforts to facilitate access to market-based finance through the creation of a capital markets union. In this context, the EU participants presented the EU plans to review the Prospectus Directive. EU and US participants reported that respective bilateral discussions regarding CCPs, notably regarding recognition under EMIR, were continuing in a constructive manner. EU participants reiterated their concerns about the effect of the Volcker Rule on foreign funds and urged the US participants to find a solution to the remaining important issue regarding foreign private funds in a timely manner. With respect to bank resolution, US and EU participants look forward to the Financial Stability Board’s finalisation of a proposal for an international minimum standard on total loss absorbing capacity (TLAC) in time for the G20 Leaders’ Summit in 2015. Participants discussed the options for cross-border cooperation on the resolution of CCPs. Regarding the ongoing international review of benchmarks, EU participants noted that EU legislators strive to create a framework which would allow well-governed benchmarks with solid checks on data inputs to be eligible for use in the EU. Participants committed to develop further cooperation on audit oversight through a sustainable process to avoid unnecessary duplication, and look forward to the prospect of the European Commission’s renewal of the Adequacy Decision. Participants stressed the need to develop policy responses to address cybersecurity risks to the financial sector.