European Union

ESMA ESMA consults on draft standards for trading obligation for derivatives under MiFIR. ESMA announced that it has published a consultation paper regarding its draft technical standards specifying the trading obligation for derivatives under the Markets in Financial Instruments Regulation (MiFIR). (6/19/2017)

ESMA publishes 2016 Annual Report. ESMA announced that it has published its 2016 Annual Report, which sets out the agency’s objectives, activities and key achievements during the course of 2016. (6/15/2017)

ESMA issues risk dashboard for first quarter of 2017. ESMA announced that it has issued its most recent iteration of its Risk Dashboard, covering risks in the EU’s securities markets for 1Q2017. ESMA’s overall risk assessment remains unchanged from 4Q16 at high levels. (6/14/2017)

ESMA issues positive opinion on short selling ban by Spanish CNMV. ESMA announced that it has issued an official opinion agreeing to an emergency short selling prohibition, for a period of one month, by the Comisión Nacional del Mercado de Valores (CNMV) on net short positions in Liberbank, S.A. shares under the Short Selling Regulation. (6/12/2017)

ESMA publishes official translations of guidelines under CSDR. ESMA announced that it has published the official EU language versions of two sets of guidelines under the Central Securities Depository Regulation (CSDR). Guidelines on CSD participants default rules and procedures aim at ensuring that CSDs define and apply clear and effective rules and procedures to manage the default of any of their participants. Guidelines on access by a CSD to the transaction feeds of CCPs and trading venues specify the risks to be taken into account by a CCP or a trading venue when carrying out a comprehensive risk assessment following a request for access to the transaction feed of the CCP or of the trading venue. (6/8/2017)

ESMA appoints new chair to Investment Management Standing Committee. ESMA announced that it has appointed Martin Moloney, Head of Markets Policy Division of the Central Bank of Ireland, to serve as the chair of the Investment Management Standing Committee. (6/7/2017)

ESMA responds to Commission consultation paper on FinTech. ESMA announced that it has sent today its response to the European Commission consultation paper on “FinTech: a more competitive and innovative financial sector,” welcoming the initiative to take a stock-take of the EU’s FinTech industry. (6/7/2017)

European Commission Commission proposes more robust supervision of CCPs. The EC announcedthat it is proposing targeted reforms to further improve the financial stability of the European Union. (6/13/2017)

Completing the Capital Markets Union: building on the first round of achievements. The EC announced that it is taking further steps to drive forward the Capital Markets Union, a pivotal project of the Juncker Commission to boost jobs and growth in Europe. (6/8/2017)

Commission sets out possible ways forward for the deepening of Europe's Economic and Monetary Union. Following the EC’s White Paper on the Future of Europe presented on March 1, 2017, the EC announced that it has set out possible ways forward for deepening Europe’s Economic and Monetary Union. (5/31/2017

European Banking Authority EBA responds to the EC public consultation on FinTech. The EBA announcedthat it has submitted its response to the European Commission’s Public Consultation on FinTech : a more competitive and innovative European financial sector Document on Retail Financial Services. In the response, the EBA conveys its views on a subset of the Commission's questions, and focuses on the work the EBA has done so far on FinTech. (6/15/2017)

EBA publishes its 2016 Annual Report. The EBA announced that it has published its 2016 Annual Report, which provides a detailed account of all the work it has achieved in the past year and anticipates the key areas of focus in the coming years. (6/15/2017)

EBA to hold public hearing to update on progress over investment firms new prudential regime. The EBA announced that it will hold a public hearing on July 3, 2017, at 14:00 UK time to update all relevant stakeholders on the progress made so far on the possibility of developing a new prudential regime for MiFID investment firms. (6/13/2017)

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. (6/9/2017)

European Central Bank ECB publishes ELA agreement. The ECB announced that it has published the text of the Emergency Liquidity Assistance (ELA) agreement following a decision by its Governing Council on May 17, 2017, with the aim of further increasing transparency regarding ELA. (6/19/2017)

ECB completes foreign reserves investment in Chinese renminbi equivalent to €500 million. The ECB announced that it has completed an investment equivalent to €500 million of its foreign reserves in Chinese renminbi during the first half of 2017, implementing a decision taken by the ECB Governing Council on January 20, 2017. (6/13/2017)

Monetary policy decisions. The ECB announced the monetary policy decisions made at a recent meeting of its Governing Council. (6/8/20107)

United Kingdom 

Firms impacted by MiFID II should submit applications for permissions now. The UK Financial Conduct Authority reminded firms of the deadline for submitting a complete application for authorization or a variation of permission should they need to change their regulatory permissions as a result of MiFID II. The FCA indicated that firms must submit a complete application on or before July 3, 2017, to receive the FCA’s determination on their applications before MiFID II comes into effect on January 3, 2018.  (6/19/2017) FCA press release. 

PRA finalizes changes to the calculation of residential mortgage risk weights. The Prudential Regulation Authority published a policy statement that finalizes its proposed amendments to the calculation of risk-weighted capital requirements in relation to residential mortgage portfolios. The final amendments extend the timetable for firms to meet the new expectations, amend the definition and formulation of cyclicality, clarify the application of the cyclicality cap to historical modelling, and emphasize that firms should use margins of conservatism where there are low historical data. The PRA also released an updated supervisory statement on Internal Ratings Based approaches alongside the final amendments. (6/19/2017) PRA press release. 

FCA offers update on regulatory sandbox. The FCA announced the firms that it has selected to participate in the second cohort of its regulatory sandbox. The FCA is now accepting applications from firms that would like to participate in the third phase of the regulatory sandbox, which are due on or before July 31, 2017. (6/15/2017) FCA press release. 

FCA launches 2017/18 Live & Local regional program. The FCA announced the schedule for its 2017/18 Live & Local regional program for regulated firms. Events for retail investment firms will take place from July to September, and will include interactive workshops focusing on its Assessing Suitability Review, among other topics. Events for general insurance firms will begin later this fall. (6/15/2017) FCA press release. 

FCA offers snapshot of good cyber security practices. The FCA published an infographic that offers guidance to firms regarding effective cyber security practices and the steps they should take to report a cyber incident. (6/15/2017) FCA infographic. 

FCA releases findings of pension lifestyle investment strategies review. The FCA published the findings of its review of life insurance companies’ approach to pension lifestyle investment strategies. The review found that most firms had reviewed the appropriateness of lifestyle strategies for new business and post-2012 auto-enrollment contracts, but had yet to conduct reviews for legacy and existing business from before 2012, which raised concerns regarding customers who are approaching retirement. (6/14/2017) FCA press release. 

PRA consults on amendments to SIMR. The PRA requested comments on a consultation paper that proposes, among other things, amendments to the Senior Insurance Managers Regime to bring it more in line with the Senior Managers Regime, a new requirement that insurers take steps to encourage board diversity, and consequential amendments to the SMR forms. Comments on the proposed changes to the SMR forms are due on or before August 14, 2017.  Comments on the proposals related to the SIMR and board diversity requirements are due on or before September 22, 2017. (6/13/2017) PRA press release. 

FCA consultation on changes related to the Fourth Money Laundering Directive. The FCA published for comment a consultation paper that proposes changes to its decision procedure and penalties manual and enforcement guide to reflect the new enforcement powers the FCA will have under Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 to oversee firms’ compliance with their anti-money laundering obligations and to deal with anti-money laundering and counter-terrorist financing breaches. Comments are due on or before July 7, 2017. (6/12/2017) FCA press release. 

FCA consults on compulsion powers in relation to LIBOR contributions. The FCA requested comments on a consultation paper that proposes how the FCA would use its compulsion powers with respect to data that banks contribute to the London Interbank Offered Rate benchmark. Comments are due on or before August 12, 2017. (6/12/2017) FCA press release. 

FCA quarterly consultation paper. The FCA published for comment a quarterly consultation paper that contains miscellaneous amendments to its Handbook, including changes related to the Training & Competence sourcebook list of appropriate qualifications; loan-based crowdfunding platforms and the client assets report; and regulatory reporting requirements in the Supervision manual. Comments on the regulatory reporting requirements are due on or before August 14, 2017. Comments on the remaining proposals are due on or before July 12, 2017. (6/12/2017) FCA press release. 

PRA consults on changes related to regulatory reporting. The PRA requested comments on a consultation paper that proposes minor amendments to the Capital+ and PRA108 templates and reporting instructions, as well as the removal of the definition of “whole-firm liquidity modification” from the PRA Rulebook. Comments are due on or before July 7, 2017. (6/12/2017) PRA press release. 

PRA seeks comments on data collection of market risk sensitivities under Solvency II. The PRA published a consultation paper that proposes the PRA’s expectations for the reporting of sensitivities of solvency positions to key market risks by firms with material exposure to market risk. Comments are due on or before August 7, 2017. (6/12/2017) PRA press release.