IOSCO consults on best practices for protecting investors during termination of investment funds. The International Organization of Securities Commissions is seeking comments on a consultation report that proposes a set of good practices on the voluntary termination process for investment funds. The consultation considers good practices in several areas of the termination process, including disclosure at the time of investment; decision to terminate; decision to merge; during the termination process; and specific types of investment funds. Comments are due on or before October 17, 2016. (8/18/2016) IOSCO press release.
FSB offers additional guidance and progress report on resolution planning. The Financial Stability Board released two additional guidance papers on resolution planning. The first paper establishes principles to ensure that temporary funding is available to facilitate the effective resolution of a global systemically important bank without bail-out by the public sector. The second paper sets out arrangements to support the continuity of critical shared services that are necessary to maintain a firm’s critical functions in resolution. The FSB also published its fifth report to the G20 on progress in resolution, which reviews the current achievements and plans additional actions needed to implement the FSB’s Key Attributes of Effective Resolution Regimes for Financial Institutions. (8/18/2016) FSB press release.
CPMI-IOSCO joint consultation on harmonization of the UPI for OTC Derivatives.IOSCO and the Committee on Payments and Market Infrastructures requested comments on a second consultative report containing proposals for a harmonized Unique Product Identifier for over-the-counter derivatives products that authorities require to be reported to trade repositories. The consultation focuses on the format of the UPI code and the content and granularity of the UPI data elements. Comments are due on or before September 30, 2016. (8/18/2016) IOSCO press release.
FSB finalizes peer review of India. The FSB published its peer review of India, which examined the macroprudential policy framework and the supervision of non-banking finance companies and housing finance companies. The FSB concluded that India’s regulators have made progress in addressing concerns in these areas but recommended additional measures for improvement, including strengthening the financial stability analysis of the macroprudential framework and improving the timeliness and granularity of data collection in the supervision of non-banking finance companies and housing finance companies. (8/17/2016) FSB press release.
CPMI-IOSCO reports on resilience of central counterparties. IOSCO and CPMI published two reports concerning the resilience of central counterparties as part of the regulatory agenda for central clearing. The first report reviews the measures adopted by certain derivatives CCPs as part of the implementation of the Principles for financial market infrastructures as they relate to financial risk management and recovery practices. The second report seeks comments on more granular descriptions of how CCPs should implement key parts of the PFMI to improve their resilience and recovery planning. Comments are due on or before October 18, 2016. (8/16/2016) IOSCO press release.
FSB discussion note on Essential Aspects of CCP Resolution Planning. The FSB requested comments on a discussion note that identifies several aspects of CCP resolution that it considers essential to the design of effective resolution strategies, including timing of entry into resolution; adequacy of financial resources; tools for returning to a matched book and allocating default and non-default losses; application of the No Creditor Worse Off safeguard and treatment of the CCP’s equity in resolution; and cross-border cooperation and effectiveness of resolution actions. Comments are due on or before October 17, 2016. (8/16/2016) FSB press release.
ISDA publishes quarterly review of IRD and CDS trading activity. The International Swaps and Derivatives Association published its SwapsInfo Quarterly Review, which analyzes interest rate derivatives and credit default swap index trading activity in the US, for the second quarter of 2016. (8/16/2016) SwapsInfo Second Quarter 2016 Review.
ISDA 2016 Variation Margin Protocol. ISDA launched the ISDA 2016 Variation Margin Protocol, which will allow counterparties to put contractual documentation in place with multiple counter parties and modify existing collateral agreements to comply with new variation margin requirements scheduled to take effect in March 2017. (8/16/2016) ISDA press release.
Basel Committee issues FAQs on Pillar 3 disclosure requirements. The Basel Committee on Banking Supervision published frequently asked questions regarding the Basel framework’s Pillar 3 disclosure requirements. (8/12/2016) BIS press release.