European Union

European Central Bank   

Changes to collateral eligibility criteria for unsecured bank bonds. The ECB announced that it has decided on changes to the collateral eligibility criteria applicable to unsecured debt instruments issued by credit institutions or investment firms or their closely-linked entities. (12/14/2017)   

Statement following the conclusion of the post-program surveillance mission to Portugal. The European Commission and ECB staff published a statementfollowing the conclusion of the seventh post-program surveillance mission to Portugal. (12/7/2017)   

ECB approves major projects in field of large-value payments and collateral management. The ECB announced that it has approved the consolidation of the Eurosystem’s real-time gross settlement system TARGET2 and the securities settlement platform TARGET2-Securities, and the development of a Eurosystem Collateral Management System. (12/7/2017)   

ESMA   

ESMA delays publication of double volume cap data. ESMA announced that it has decided to delay the publication of the data on the double volume cap mechanism for January 2018. (1/9/2018)   

ESMA issues list of trading venues temporarily exempted from open access under MiFIR. ESMA announced that it has published a list of those trading venuesfor which a temporary exemption from the open access provisions under 36(5) of MiFIR exists. (1/9/2018)   

ESMA publishes register of derivatives to be traded on-venue under MIFIR. ESMA announced that it has published a public register of those derivative contracts that are subject to the trading obligation under MiFIR. (1/9/2018)   

ESMA publishes first MIFID II position management controls for commodity derivatives. ESMA announced that it has issued a first badge of position management controls under MiFID II. (1/9/2018)   

ESMA consults on CCP anti-procyclicality margin measures. ESMA announcedthat it has opened a public consultation on draft guidelines which aim to clarify the implementation of anti-procyclicality provisions for central counterparties under EMIR. (1/8/2018)   

MiFID II/MiFIR data now available. ESMA announced that it, in cooperation with national competent authorities in the European Economic Area, has overseen the launch of MiFID II and MiFIR January 3. (1/4/2018)   

ESMA publishes updated key transparency calculations for MiFID II/MiFIR implementation. ESMA announced that it published an updated version of the MiFID II/MiFIR transitional transparency calculations (TTC) for equity and bond instruments. (12/22/2017)   

ESMA updates its CFI validations for MiFID II. ESMA announced that it has published the updated CFI validation document relevant for data reporting under MiFID II. (12/21/2017)   

ESMA review finds good supervision of CCPS’ default management. ESMA announced that it has issued the results of a peer review it conducted into how national competent authorities ensure that central counterparties comply with requirements under EMIR. (12/21/2017)   

ESMA advises the EC on specific elements of the short-selling regulation. ESMA announced that it has issued its Technical Advice to the EC on how to improve the Short-Selling Regulation. (12/21/2017)   

ESMA publishes CRA market share calculation. ESMA announced that it has published its annual market share calculation for EU registered credit rating agencies. (12/20/2017)   

ESMA issues statement on LEI implementation under MiFID II. ESMA announced that it has issued a statement to support the smooth implementation of Legal Entity Identifiers requirements under MiFIR. (12/20/2017)   

ESMA publishes translations for MiFID II guidelines on the management body of market operators and DRSPS. ESMA announced that it has issued the official translations of its Guidelines on the management body of market operators and data reporting services providers under MiFID II. (12/19/2017)   

ESMA updates MiFID II trading halts procedure. ESMA announced that it has published a revised procedure and template to be used by national competent authorities (NCAs) for the purpose of reporting the parameters used by trading venues under their jurisdiction for halting trading in accordance with Article 48(5) of MiFID II. (12/19/2017)   

ESMA consults on securitization requirements. ESMA announced that it has published three consultation papers on draft technical standards implementing the Securitization Regulation. (12/19/2017)   

ESMA provides guidance on cross-border investment services and MiFID transposition. ESMA announced that it has issued guidance to national competent authorities and market participants on the topic of continuity of cross-border provision of investment services in the transition between MiFID I and MiFID II, including in the event that there is late transposition of the Directive by some Member States. (12/18/2017)   

ESMA updates its MiFID II Q&As on transparency and market structures. ESMA announced that it has updated its Questions and Answers (Q&As) regarding transparency and market structures issues under MiFID II and MiFIR. (12/18/2017)   

ESMA updates its Q&As on MiFID II/MiFIR Investor Protection topics. ESMA announced that it has added 10 new Q&As to its Q&A document on the implementation of investor protection topics under MiFID II/ MiFIR. (12/18/2017)   

New rules make EU issuers’ annual financial reports machine-readable. ESMA announced that it has published the final draft Regulatory Technical Standards (RTS) setting out the new European Single Electronic Format. (12/18/2017)   

ESMA updates Q&A on MiFIR data reporting. ESMA announced that it has updated its Q&A regarding data reporting under MiFID II and MiFIR. (12/18/2017)   

ESMA issues updated statement on preparatory work in relation to CFDs, binary options and other speculative products offered to retail clients. ESMA announced that it has issued a statement updating on its work in relation to the sale of contracts for differences, binary options, and other speculative products to retail investors. (12/15/2017)   

ESMA provides further guidance for transactions on 3rd country trading venues for post-trade transparency and position limits under MiFID II/MiFIR. ESMA announced that it has published two revised opinions providing guidance related to third-country trading venues for post trade transparency and position limitsunder MiFIDII/MiFIR.  (12/15/2017)   

ESMA provides overview of MiFID II deferral regimes. ESMA announced that it has published a table compiling the supplementary deferral regimes applicable in different Member States for trading in non-equity instruments under MiFIR. (12/15/2017)   

MiFID II: ESMA updates on commodity derivatives. ESMA announced that it has updated its Q&As regarding commodity derivatives under MiFID II and MiFIR. This update relates to position limits and position reporting. (12/15/2017)  

ESMA consults on draft RTS for prospectuses. ESMA announced that it has launched a consultation on draft Regulatory Technical Standards under the new Prospectus Regulation. (12/15/2017)   

ESMA updates MAR Q&As. ESMA announced that it has updated its Q&Adocument regarding the implementation of the Market Abuse Regulation. (12/14/2017)   

ESMA updates its CSDR Q&A. ESMA announced that it has published an update of its Q&As regarding the implementation of the Central Securities Depository Regulation. (12/14/2017)      

ESMA updates MiFID II Q&As on post-trading issues. ESMA announced that it has updated its Q&As on post-trading issues regarding the implementation of MiFID II and MiFIR. (12/14/2017)   

ESMA updates its EMIR Q&A. ESMA announced that it has issued an update of its Q&A on practical questions regarding the implementation of the European Markets Infrastructure Regulation. (12/14/2017)   

ESMA updates Q&As on the Benchmarks Regulation. ESMA announced that it has published updated Q&As regarding the implementation of the Benchmarks Regulation. (12/14/2017)   

ESMA publishes key transparency calculations for MiFIDII/MiFIR implementation. ESMA announced that it has published the MiFID II/MiFIR transitional transparency calculations (TTC) for equity and bond instruments. This publication means that TTC for all asset classes, applicable from January 3, 2018, are now available to market participants, infrastructures and authorities as required under the new regulatory framework. (12/6/2017)   

European Banking Authority   

EBA issues guidance for the use of cloud service providers by financial institutions. The EBA announced that it has launched its final guidance for the use of cloud service providers by financial institutions. (12/20/2017)   

EBA publishes full impact assessment of Basel reforms on EU banks. The EBA announced that it has published its full assessment quantifying the impact of the reform package recently agreed by the Basel Committee on Banking Supervision on the European banking system. (12/20/2017)   

EBA updates its quantitative analysis on MREL. The EBA announced that it has published an updated quantitative analysis on the minimum requirement for own funds and eligible liabilities (MREL). (12/20/2017)   

ESAs publish final draft technical standards amending margin requirements for non-centrally cleared OTC derivatives. The ESAs announced that they have published their jointly developed draft Regulatory Technical Standards amending the framework of EMIR with regard to physically settled foreign exchange forwards. (12/19/2017)   

EBA publishes Discussion Paper on EU implementation of the revised market and counterparty credit risk frameworks. The EBA announced that it has published a Discussion Paper on the implementation in the EU of the revised market risk and counterparty credit risk frameworks. (12/18/2017)   

EBA consults on amended technical standards on benchmarking of internal models The EBA announced that it has launched a consultation to amend the Commission Implementing Regulation on benchmarking of internal models to adjust the benchmarking portfolios and reporting requirements in view of the benchmarking exercise the EBA will carry out in 2019. The proposed changes reduce uncertainties in the credit risk portfolios, thus aiming at fostering a common and coherent interpretation and implementation of the reporting requirements across EU institutions. The consultation will run until January 31, 2018. (12/18/2017)   

EBA publishes its standardized data templates as a step to reduce NPLs. The EBA announced that it has published data templates that will create the foundation for NPL transactions across the EU. (12/14/2017)   

EBA publishes final draft technical standards on the future EBA register under the Payment Services Directive. The EBA announced that it has published its final draft regulatory technical standards (RTS) and implementing technical standards on the EBA electronic central register under the Payment Services Directive. (12/13/2017)  

EBA publishes final Guidelines on security measures under PSD2. The EBA announced that it has published final Guidelines on security measures for operational and security risks of payments services under the revised Payment Services Directive. (12/12/2017)   

EBA publishes final draft technical standards on central contact points under PSD2. The EBA announced that it has published its final draft Regulatory Technical Standards on Central Contact Points under the revised Payment Services Directive. (12/11/2017)   

EBA issues revised list of ITS validation rules. The EBA announced that it has issued a revised list of validation rules in its Implementing Technical Standards (on supervisory reporting, highlighting those which have been deactivated either for incorrectness or for triggering IT problems. (12/8/2017)   

United Kingdom 

Financial Conduct Authority 

FCA proposes transitional provisions for changes to FSCS compensation levy year. The UK Financial Conduct Authority requested comments on a consultation paper that proposes transitional provisions that will delay changes to the Financial Services Compensation Scheme levy year in an effort to avoid unintended modifications to the allocation of costs to the life and pensions intermediation class. Comments are due on or before February 5, 2018. (1/4/2018) FCA press release. 

FCA approves applications for transitional arrangements for trading venues under MiFIR. In a statement on transitional arrangements for trading venues under MiFIR, the FCA indicated that it has received and approved applications from two trading venues that will exempt them from the open access requirements of Article 36 with respect to exchange-traded derivatives. The transitional arrangements will expire on July 3, 2020. (1/3/2018) FCA statement. 

FCA responds to EC’s decision to delay effective date of IDD. The FCA issued a statement acknowledging the European Commission’s proposal to delay the application date of the Insurance Distribution Directive until October 1, 2018. The FCA indicated that the UK will still be required to transpose the IDD into law by February 23, 2018, but firms will not have to comply with the IDD until October 1, 2018. (12/21/2017) FCA statement. 

FCA issues statement on approach to Brexit transitional period. In a statement on the status of negotiations regarding the UK’s withdrawal from the EU, the FCA welcomed the proposal to provide for an implementation period and discussed its approach under a potential temporary permissions regime, which would permit firms to manage existing business and mitigate risks associated with a sudden loss of permission during a transitional period. (12/20/2017) FCA statement. 

FCA responds to ESMA’s LEI process. In response to ESMA’s statement on the smooth introduction of the LEI requirements for MiFID implementation, the FCA indicated that it would temporarily amend a validation rule in its transaction reporting system to support ESMA’s temporary process for LEIs of legal persons. However, the FCA did not expect to have the change in place prior to the implementation of the process on January 3, 2018. (12/20/2017) FCA statement. 

FCA policy statement on changes to Handbook relating to the EU Benchmarks Regulation. The FCA published a policy statement that contains the near-final rules to implement changes to the FCA’s Handbook to reflect the application of the EU Benchmarks Regulation. The FCA will finalize the rules once the legislative framework for the changes is complete. (12/20/2017) FCA policy statement. 

FCA signals intent to comply with EBA Guidelines on operational and security risks under PSD2. In a statement, the FCA indicated that it would comply with EBA’s final Guidelines on security measures for operational and security risks of payments services under the revised Payment Services Directive, which will become effective on January 13, 2018, and consult on its approach to applying the Guidelines later in 2018. (12/19/2017) FCA statement. 

FCA publishes feedback on distributed ledger technology. The FCA published a feedback statement that summarizes the responses it received to its request for stakeholder views on the potential for future development of distributed ledger technology. (12/15/2017) FCA press release. 

FCA supports ESMA’s plan to restrict sale of CFD and binary option products to retail investors. The FCA indicated in a statement that it supports ESMA’s plan to consider using its product intervention powers under MiFIR to address the risks to investor protection posed by contracts for differences, including rolling spot forex and binary options. (12/15/2017) FCA statement. 

FCA consults on changes to PSR regulatory fees approach. The FCA requested comments on a consultation paper that proposes changes to its approach to Payment System Regulator fees collection and allocation. Comments are due on or before January 26, 2018. (12/15/2017) FCA press release. 

FCA issues policy statement on implementation of the IDD. The FCA published a policy statement that contains the near-final rules for the implementation of most IDD Level 1 directive matters, including the remaining conduct requirements for life policies and information disclosure in relation to non-investment insurance contracts. (12/15/2017) FCA policy statement. 

Regulation round-up. The FCA published the December 2017 edition of its Regulation round-up. (12/14/2017) 

FCA updates proposals on persistent credit card debt. The FCA is seeking comments on an updated consultation paper that contains proposed rules to address persistent credit card debt experienced by consumers. The updated consultation includes a revised analysis of the costs to businesses of the proposed remedies and changes to the FCA’s approach on aspects of its persistent debt proposals based on feedback to its initial consultation. Comments are due on or before January 25, 2018. (12/14/2017) FCA press release. 

FCA consults on approach to transition to the Senior Managers and Certification Regime. The FCA published for comment a consultation paper that proposes several measures addressing how firms and individuals will move to the Senior Managers and Certification Regime. The proposals would adopt a proportionate approach for different types of firms and would extend the “Duty of Responsibility” to insurers and firms solely regulated by the FCA. Comments are due on or before February 21, 2018. (12/13/2017) FCA press release. See also related proposals from the Prudential Regulation Authority

FCA issues statement on authorization and supervision of insurance special purpose vehicles. The FCA released a statement that explains its approach and expectations when authorizing and supervising insurance special purpose vehicles in line with the FCA’s objectives and Threshold Conditions. (12/13/2017) FCA statement. 

FCA finalizes new disclosure rules for current account providers. The FCA published final rules that will require providers of personal current accounts and business current accounts to publish information regarding their services to assist consumers in making meaningful comparisons of the services different current account providers offer. The rules will become effective on August 15, 2018. (12/12/2017) FCA press release. 

FCA publishes approach documents on authorization and competition. The FCA published its approach to authorization and its approach to competition, which provide a detailed explanation of the FCA’s approach to regulation in these areas. Comments are due on or before March 12, 2018. (12/11/2017) FCA press release. 

Prudential Regulation Authority 

PRA consults on MREL reporting expectations. The PRA requested comments on a consultation paper that proposes its expectations for reporting on the minimum requirement for own funds and eligible liabilities (MREL) to assist the PRA and the Bank of England in monitoring firms’ progress towards meeting interim MREL, and eventual compliance with end-state MREL. Comments are due on or before April 9, 2018.  (1/8/2018) PRA press release. 

PRA publishes updated rules on MiFID II and IDD. The PRA updated its policy statement containing final rules and form changes related to MiFID II and IDD to include the MiFID Passporting Instrument 2007, which includes consequential IDD-related changes to the Branch Notification and Cross Border Services Notification forms. (12/21/2017) PRA press release. 

PRA offers guidance to firms regarding planning assumptions for Brexit. In a letter addressed to CEOs of banks, insurers and designated investment firms, the PRA explained its views on the prudent planning assumptions that firms should make while preparing to mitigate risks to the continuity of existing cross-border contracts until details of the UK’s new trading relationship with the EU following the UK’s withdrawal have been finalized. (12/20/2017) PRA letter. 

PRA consults on authorization and supervision of international firms post-Brexit. The PRA published two consultation papers that propose new approaches to branch authorization and supervision that would apply to relevant firms following changes to passporting arrangements after the UK withdraws from the EU. The first paper applies to international banks that undertake wholesale banking activities in the UK via branches, and the second paper applies to third-country insurers. Comments are due on or before February 27, 2018. (12/20/2017) See also Bank of England press release. 

PRA review of Solvency II model change related processes. The PRA released a statement that describes the findings of its assessment of Solvency II major model change and other applications processes, which reviewed the time it has taken to assess model change applications approved since the implementation of Solvency II; how firms had completed the Common Application Package when making model change applications; and how firms have defined model changes in model change policies. (12/12/2017) PRA press release.