ESMA warns of RTS delay: ESMA has written to the Commission, suggesting there may be a delay in finalising several RTS under the revised Markets in Financial Instruments Directive (MiFID 2) and Regulation (MiFIR), and under the Market Abuse Regulation (MAR). The letter stresses ESMA could finalise all guidelines in time, but that, if it accommodates a proposed early review by the Commission staff, it may need a three-month extension to the end of September before it can publish some of the RTS. Jonathan Hill, on behalf of the Commission, agreed to the extension. (Source: ESMA Warns of RTS Delay)

ESMA consults on IRS clearing: ESMA is consulting on more RTS on the clearing obligation under EMIR for Interest Rate Swaps (IRS). It plans to extend the clearing obligation to several classes and denominations of IRS not previously included in RTS. The paper sets out:

  • the clearing obligation procedure;
  • structure of classes of instruments that will now be subject to the obligation;
  • the determination of classes of instrument that will be subject to mandatory clearing;
  • the approach for defining categories of counterparty and the dates from which the obligation will apply for each category; and
  • the definition of minimum remaining maturities for applying frontloading.

ESMA asks for comment by 15 July. (Source: ESMA Consults on IRS Clearing)

ESMA updates on AIFMD FAQs: ESMA has updated its FAQs on application of the Alternative Investment Fund Managers Directive (AIFMD). There is a set of new questions and answers on reporting and a new question on calculation of leverage. (Source: ESMA Updates on AIFMD FAQ)

ESMA speaks on CMU: Steven Maijoor, Chair of ESMA, has delivered a speech titled "Priorities of a Capital Markets Union (CMU)" at the Luxembourg Stock Exchange Day. In the speech he covered:

  • the current state of the EU economy and how policy initiatives encouraging structural reforms, such as the development of a CMU, are essential to solving the economic problems facing the EU economy;
  • the need to provide alternative sources of funding to the real economy - such as CMU, as well as securitisation and crowdfunding, both of which he commented on directly;
  • the importance of ensuring sufficient investor participation in CMU by developing a high degree of investor protection; and
  • the need to develop a Europe-wide comprehensive supervisory approach.

He concluded by stressing the importance of non-bank financing in stimulating the economy. (Source:Steven Maijoor, Chair of ESMA: Priorities of a Capital Markets Union)