BANKING

FCA discussion paper on distributed ledger technology

The FCA has published a discussion paper on distributed ledger technology (DLT) (DP17/3). DLT is described as a set of technological solutions that enables a single, sequenced, standardised and cryptographically-secured record of activity to be safely distributed to, and acted upon by, a network of varied participants. This record could contain for example, transactions, asset holdings or identity data. DLT has the potential to provide various benefits for regulated markets. Regulated firms have invested increasing resources in using this technology to provide financial services and the FCA expects "realworld" deployments of DLT in 2017 and 2018.

Financial Conduct Authority, April 2017

FCA speech on the next phase of Project Innovate

The FCA has published a speech by Christopher Woolard, FCA Executive Directive of Strategy and Competition, about what the next phase of Project Innovate will involve

Financial Conduct Authority, 10 April 2017

INVESTMENTS AND FUNDS

ESMA opinion on portfolio margining for CCPs under EMIR

ESMA has published an opinion on portfolio margining requirements under Article 27 of Commission Delegated Regulation (EU) 153/2013 that contains regulatory technical standards (RTS) supplementing EMIR. Article 27 provides that a central counterparty (CCP) may allow offsets or reductions in the required margin across the financial instruments that it clears if the price risk of one financial instrument or a set of financial instruments is significantly and reliably correlated, or based on equivalent statistical parameter of dependence, with the price risk of other financial instruments.

ESMA, 10 April 2017