Countries object to MiFID II proposal on bonds. Reuters reported that Germany, France and Britain have sent a letter to European regulators which expresses concern over the proposed treatment of bond trades under the Markets in Financial Instruments Directive II (MiFID II). Among other things, the three countries object to the public display of bid and offer prices for certain heavily traded bonds. (9/1/2015) Letter.
ESMA consults on MiFID II standards. The European Securities and Markets Authority (ESMA) opened a consultation on the remaining draft implementing technical standards under the MiFID II on which ESMA has not yet consulted. The consultation addresses the suspension and removal of financial instruments from trading on a trading venue; the notification and provision of information for data reporting services providers; and the weekly aggregated position reports for commodity derivatives, emission allowances and derivatives thereof. Comments should be submitted by October 31, 2015. (8/31/2015) ESMA press release.
ECB amends General Documentation on monetary policy implementation. The European Central Bank (ECB) published a new Guideline which amends the General Documentation on the implementation of the Eurosystem’s monetary policy. The new guidelines amend the provisions on counterparty eligibility to state that the Eurosystem may take into account in its eligibility assessment information on capital, leverage and liquidity ratios of individual institutions. The guidelines also introduce a new class of eligible assets, the “non marketable debt instruments backed by eligible credit claims.” (8/31/2015) ECB press release.
UK PRA issues four publications. The UK Prudential Regulation Authority (PRA) issued four new publications, three of which address Solvency II and one on an administrative instrument:
- Solvency II: applying EIOPA Set 2, System of Governance and ORSA Guidelines - CP30/15 seeks feedback on a draft supervisory statement that sets out the PRA’s expectations of firms and its general approach to certain European Insurance and Occupational Pensions Authority (EIOPA) Guidelines. Comments should be submitted by September 30, 2015.
- Solvency II: third-country insurance and pure reinsurance branches - CP31/15 consults on revisions to Supervisory Statement 10/15 “Solvency II: third-country branches,” published in March 2015, concerning the PRA’s approach to third-country insurance and pure reinsurance branches under the Solvency II Directive. Comments should be submitted by September 30, 2015.
- Solvency II: consistency of UK generally accepted accounting principles with the Solvency II Directive - SS38/15, which concerns all insurance firms within the scope of Solvency II that provide their financial reporting under UK generally accepted accounting principles rather than international accounting standards.
- PRA Rulebook: Administration Instrument (No. ) 2015 - CP32/15 consults on administration instruments to make corrections to PRA Rulebook provisions. The corrections are not substantive and are not intended to change PRA policy. The corrections will result in rule amendments. Comments should be submitted by September 11, 2015.
Ireland’s Central Bank considers new SPV rules. The Irish Times summarized the findings of a recent report written by economists at Ireland’s Central Bank. The paper noted that the lack of information concerning Irish-registered special purpose vehicles could “exacerbate the vulnerabilities within the financial system.”
(8/28/2015) SPV rules.
ESMA consults on EMIR standards for CCP client accounts. ESMA opened a consultation on its regulatory technical standards under the European Market Infrastructure Regulation (EMIR) concerning CCP client accounts. Comments should be submitted by September 30, 2015. (8/27/2015) ESMA press release.
New FCA Handbook and PRA Rulebook websites. The UK Financial Conduct Authority (FCA) released its new Handbook website on August 29, 2015. On the same day, the PRA released its own Rulebook website. (8/24/2015) FCA press release.
Responses to ESMA Discussion Paper on PRIIPS Key Information Document.ESMA published the responses it received to its Discussion Paper on Key Information Document for Packaged Retail and Insurance-based Investment Products. (8/20/2015) ESMA press release.
FCA proposes 2015/16 PSR regulatory fees. The FCA released a consultation paper explaining how it will calculate and collect Payment Systems Regulator (PSR) fees from participants in regulated payment systems and its decision to apportion PSR fees between systems based on equal allocation across regulated pan-UK payment systems. Comments are due on or before September 17, 2015. (8/20/2015) FCA press release.
FCA Regulation round-up. The FCA published its August 2015 Regulation round-up, which updates regulated firms on the latest developments from the past month. (8/20/2015) Regulation round-up.
EBA will further analyze Net Stable Funding Requirements and Leverage Ratio.The European Banking Authority (EBA) announced that it will conduct further analysis on proportionality, the scope of application and impact on markets of the calibration of Net Stable Funding Requirements and Leverage Ratio. The analysis on proportionality will be based on an assessment of the impact of the requirements on banks with different business models and will also specifically aim to cover potential future reporting requirements. The EBA will try to incorporate these aspects into its reports to the maximum extent possible and taking into account constraints in data availability. (8/19/2015) EBA press release.