Capital Requirements Directive IV and Regulation (CRD IV / CRR): with final negotiations continuing amongst the 'trialogue' of the European Council, Commission and Parliament, the long-awaited final text of the CRD IV and CRR has still not yet been agreed.  We understand that the European Parliament will not now consider the latest text until a plenary session scheduled for mid-April 2013.  The EU (and all of its Member States) is now technically in breach of its requirement to implement the Basel III agreement from its 1 January 2013 start date.  While many banks across Europe are expected to be able to demonstrate practical compliance with many of the aspects of Basel III that took effect from 1 January 2013 (principally the new capital framework in terms of calculation and composition, with the additional buffers, liquidity and leverage provisions following much later), without an official set of rules (at both European and Member State level) by which to implement Basel III's provisions, EU banks remain in something of a regulatory limbo. 

European Markets Infrastructure Regulation (EMIR): having entered into force in August 2012, it is the additional "Level 2" Regulatory and Implementing Technical Standards (RTS and ITS respectively) for EMIR that will contain much of the detail of the new European mandatory clearing and reporting regime for derivatives transactions.  Publication by the European Commission of nine RTS and ITS in late December 2012, which include the technical standards on the clearing obligation, reporting obligation and the risk mitigation requirements, complete the European legislative package for the mandatory clearing and reporting of derivatives transactions, and also have an important impact on the anticipated EMIR implementation timeframe.  Read more in our EMIR Timeline Client Alert

Credit Rating Agencies III (CRA III): as we note above in our Key Developments section, the European Parliament voted through the final text of CRA III in mid-January 2013.  This legislation is now awaiting publication in the Official Journal of the EU; it will enter into force directly within EU Member States 20 days following publication.  In conjunction, the European Securities and Markets Authority (ESMA) has launched a Consultation focusing on the scope of CRA III (specifically its application to entities outside its scope).  At global level, the International Organisation of Securities Commissions has committed to reviewing its Code of Conduct Fundamentals for CRAs (which risks becoming obsolete as CRA III and similar US provisions take effect) and has reported back on its earlier reviews of CRAs' internal controls and, more presciently, on so-called "supervisory colleges" for CRAs that would ensure greater cross-border co-operation in future.