There have been many developments in national and European financial markets regulation during the past month. Among other things, ESMA is preparing for the entry into force of the amended Transparency Directive on 26 November. The Bill implementing this directive in the Netherlands, however, will most likely enter into force after 1 January. In addition, supervisory authorities have published a large number of consultation documents, draft rules and other information since the last edition of In context.

Dutch regulation

Implementation of the framework for recovery and resolution of credit institutions and investment firms

The First Chamber has adopted the Bill implementing the European framework for the recovery and resolution of credit institutions and investment firms. This Bill contains rules on:

  • recovery and resolution plans
  • resolution tools, e.g. the power to sell or merge the business with another bank, to set up a temporary bridge bank to operate critical functions, to separate good assets from bad ones and to convert to shares or write down the debt of failing banks (bail–in).
  • the national resolution fund
  • the powers of the Dutch Central Bank
  • deposit guarantee schemes.

The Bill is expected to take effect shortly.

European regulation

Transparency Directive – state of affairs 

ESMA prepares for entering into force of the amended directive The revised Transparency Directive will take effect on 26 November. In preparation for its entry into force, ESMA has updated its Q&A document on the Transparency Directive. The Q&A clarifies the definition of home Member State; the division of responsibilities between home and host Member States; the disclosure and dissemination of regulation information; and the aggregation rule for the calculation of notification thresholds of voting rights.

ESMA has also published two new standard forms:

  • home Member State disclosure form
  • standard form for the notification of major holdings

Finally, ESMA has re-published the indicative list of financial instruments subject to notification requirements.

Delegated Regulation

The European Commission has published a delegated regulation containing requirements for the notification of major holdings in listed companies. It will apply as from 26 November.

Implementation in the Netherlands

The Second Chamber is expected to vote on the Bill implementing the Transparency Directive on 17 December. Therefore, it is highly likely that the Bill will take effect after 1 January. If this should be the case, the requirement for listed companies to publish their quarterly figures will terminate with retroactive effect.

Transparency of securities financing transactions

The European Parliament has adopted a proposal for a Regulation aimed at increasing the transparency of securities financing transactions. This proposal was announced in the action plan on shadow banking. The regulation will be adopted by the Council soon.

ESMA – publications

EBA – publications

European Central Bank – publications

Publicaties Joint Forum

Loan Market Assocation – publications