• Draft policy rule on calculation of short positions

A duty to report short positions will take effect on 1 July 2013. To clarify what constitutes a short position and how it should be calculated, the AFM has published a draft policy rule. Comments on the draft policy rule may be submitted until 26 April.

  • AFM explains new requirements under the European Market Infrastructure Regulation (EMIR) toe

The first set of EMIR requirements came into effect on 15 March 2013. These apply to OTC derivatives traders where there are open derivatives positions that are not settled centrally by a central counterparty.

The AFM has explained the new requirements. These are, briefly:

  • Non-financial institutions must notify the AFM when they pass the applicable thresholds
  • Counterparties must, as soon as possible, confirm new derivatives transactions that are not settled centrally
  • Financial counterparties and non-financial counterparties exceeding the threshold, must determine the market value of the outstanding derivatives contracts on a day to day basis

The AFM has published a brochure about the effects of the European derivatives legislation earlier this year and has explained when non-financial parties must comply with EMIR requirements. ESMA and the European Commission have also published information about EMIR and its introduction.

  • Newsletter about services document (DVD)

Financial service providers will have to provide a standard services document for those products that have been subject to the ban on commissions since 1 January 2013. The AFM has published a newsletter about the new services document and from 1 June 2013, the AFM website will contain a tool to assist financial service providers in drawing up these documents in accordance with the legal requirements.