Dear All,


ICMA/AMIC activities

ICMA has published its latest issue of the Quarterly Report. Please particularly note the Asset Management segment, which appears on pages 53 - 58. This includes articles on Short TermismFund LiquidityELTIF ReviewMIFID II/R Research Unbundling; Other Buy Side Regulatory Developments; and Buy-side Oriented Research.

The next AMIC conference will take place on 27 November in London and will be hosted by BlackRock. The conference will feature Tatyana Panova, Head of Unit, Capital Markets Union at the European Commission as a keynote speaker on the topic of CMU, followed by panel discussions led by industry practitioners on the development of the STS Securitisation market, the pension gap, PEPP and the effect of negative interest rates and a discussion on the possibility of an EU Ecolabel for funds. All market participants are welcome to attend for free however registration in advance is essential, please use the link above to register. 

Upcoming ICMA Courses

14-15 October: ICMA Training Course: Introduction to Green Bonds
14-15 October: Securitisation: An Introduction 
    6-8 November: Financial Markets Foundation Qualification (FMFQ)
21-22 November: Fixed Income Portfolio Management 
     25 November: Portfolio Construction


Fund liquidity

  • (10.10.2019) FPC publishes a note from of its meeting on 2 October 2019

The Financial Policy Summary and Record published following the Financial Policy Committee Meeting on 2 October 2019 contains a section on Tackling vulnerabilities in open-ended funds.

In the summary, the FPC noted the importance of addressing liquidity mismatches in open-ended funds internationally. Given the global nature of asset management, the effectiveness of domestic policy measures would depend in part on the policies implemented in other jurisdictions. Different approaches globally could lead to sub-optimal outcomes. This had underpinned the FPC’s continued support for the Financial Stability Board’s (FSB) 2017 recommendation that funds’ assets and investment strategies should be consistent with their redemption terms. While endorsing the FSB’s recommendation, subsequent principles published by the International Organisation of Securities Commissions (IOSCO) had provided flexibility to national authorities and funds themselves, and different measures had been adopted. The Bank of England and the FCA would continue to engage with the relevant international bodies to achieve consistent implementation across jurisdictions.


  • (8.10.2019) Speech by Valdis Dombrovskis (European Commission) at his hearing with the European Parliament 

Speech by Valdis Dombrovskis, Executive Vice-President and Commissioner-designate for An Economy that Works for People, during his hearing by the European Parliament.

Dombrovskis said in the previous mandate, the EU made significant progress on the Banking Union and the Capital Markets Union. He emphasised the need to support small and medium enterprises, describing them as the backbone of Europe’s economy and he urged the EU to continue pursuing a Capital Markets Union.
On green bond standards, he said they have asked the Technical Expert Group to provide a report, which was published in June and creating the EU green bond standards that can be available to all issuers. They will ensure transparency in the process.
  • (9.10.2019) Next CMU High-Level Group published final report    

The Next CMU High-Level Group has published its final report titled Savings and Sustainable Investment Union. In addition to the group suggesting to rename the CMU as the "Savings and Sustainable Investment Union", the group recommends EU leaders to focus on two marjor objectives:
-Adopting and promoting a capital market that offers saving products to serve citizens’ needs and that allocates capital to value creating investments in the real, innovating and sustainable economy; and
-Building/strengthening an integrated, competitive, deep and liquid European Capital Market, to maintain the EU as one of the top two financial centres of the world.

The group also recommends four capital market components:
-Generate more Long-Term Savings and Investment opportunities;
-Massively develop Equity Markets;
-Increase financial flow fluidity between EU financial market places; and
-Develop Debt, Credit and Forex financing tools in a manner that increases the international funding currency role of the Euro.
  • (10.10.2019) High-Level Group of Wise Persons publishes report on the European financial architecture for development

The High-Level Group of Wise Persons has published an independent report on the European financial architecture, Europe in the World: The Future of the European Financial Architecture for Development.

The report observes that the present fragmentation of the European development finance architecture, especially between the EIB and the EBRD, is detrimental to the fulfilment of the EU's priority goals and the achievement of the desired development impact.  This argues for the consolidation and streamlining of development finance and climate activities outside the EU into a single entity, a European Climate and Sustainable Development Bank, in order to avoid overlaps, and strengthen the EU's presence, role and long-term capacity to deliver on EU development priorities.  

The report considers three options for such consolidation: 
-building on the EBRD and the external financing activities of the EIB; 
-pulling together the external activities of the current EU financial institutions in a new financial institution with mixed ownership; or 
-transferring all external activities of the EIB into an EIB subsidiary with significant other shareholders.

Monetary policy
  • (8.10.2019) BIS committees release two major reports on unconventional policy tools

The Committee on the Global Financial System (CGFS) and the Markets Committee have published two major reports on the implementation and implications of unconventional monetary policy tools (UMPTs) introduced by central banks in response to the financial crisis and its aftermath.

The CGFS report Unconventional monetary policy tools: a cross-country analysis summarises the shared understanding of central banks on the tools' use, effectiveness and side effects.

The report concludes that, on balance, UMPTs helped the central banks that used them address the circumstances presented by the crisis and the ensuing economic downturn. The report identifies side effects, such as disincentives to private sector deleveraging and spillovers to other countries, but does not consider them sufficiently strong to reverse the benefits of UMPTs. The report also discusses whether, and under what circumstances, these tools could be useful in the future.

In Large central bank balance sheets and market functioning, the Markets Committee provides a systematic cross-country perspective on the effects of large central bank balance sheets on the functioning of bond and money markets. 

The report shows that the expansion, especially in the early phases, had mainly positive effects on market functioning. When liquidity dried up, emergency lending programmes helped ease severe funding market strains, while purchases of bonds with outsize risk premia tended to improve their underlying liquidity.

Negative side effects sometimes arose (for instance due to scarcity effects in bond markets), but did not tighten financial conditions materially, in part because of mitigating actions taken by policymakers. While adverse effects have often been transitory, they can have an enduring impact when policies are in place for extended periods of time.

Money laundering
  • (4.10.2019) ESAs highlight money laundering and terrorist financing risks in the EU financial sector

The three European Supervisory Authorities (ESAs) have published their second joint Opinion on the risks of money laundering (ML) and terrorist financing (TF) affecting the European Union's (EU) financial sector.

The ESAs are concerned about weaknesses in the control frameworks put in place by financial institutions, particularly for transaction monitoring and suspicious transactions reporting, in sectors with high volumes of transactions. 

The ESAs acknowledge that the use of new technologies may offer opportunities to better fight financial crime, however, this Opinion also confirms that the increasing use of new technologies by credit and financial institutions may give rise to ML/TF risks if vulnerabilities are not understood and mitigated.

  • (4.10.2019) ESMA consults on MiFIR alignment following the introduction of EMIR Refit

The European Securities and Markets Authority (ESMA) has launched a consultation on possible amendments to the trading obligation under MiFIR following the introduction of EMIR Refit.

The recent changes introduced to EMIR via Refit modify the scope of counterparties subject to the clearing obligation – exemption for small financial counterparties and modified determination of non-financial counterparties. The introduction of EMIR Refit has not been accompanied by direct amendments to MiFIR, which currently leads to a misalignment between the scope of counterparties subject to the clearing obligation (CO) under EMIR and the derivatives trading obligation (DTO) under MiFIR. Instead, in light of the close interconnection between those two obligations, EMIR Refit mandates ESMA to assess whether the DTO under MiFIR should be aligned with changes to the CO introduced by EMIR Refit, and to submit its findings in a report to the Commission.

As a first step towards this report, ESMA developed a range of arguments on the necessity and appropriateness of aligning both obligations within this consultation paper (CP). ESMA’s initial proposal in the CP would be to formulate a recommendation to the European Commission to align the scope of counterparties subject to the clearing and the trading obligation.
  • (7.10.2019) ESMA updates Q&A on MiFIR data reporting

The European Securities and Markets Authority (ESMA) has updated its Questions and Answers on data reporting under the Market in Financial Instruments Regulation (MiFIR).

The Q&As provide clarifications in relation to the requirements for submission of reference data and transactions under MiFIR. In particular, the Q&As relate to reporting of FX forward financial instruments under art. 26 and art. 27 of MiFIR.

  • (8.10.2019) ESMA adopts MAR standards on supervisory cooperation

The European Securities and Markets Authority (ESMA) has issued its final report on a set of Regulatory Technical Standards (RTS) on the application of the Market Abuse Regulation (MAR).

ESMA’s RTS cover cooperation arrangements between national competent authorities and their counterparts in third-countries for the purpose of efficiently exchanging information and enforcing the obligations related to market abuse.

ESMA has submitted these RTS for endorsement to the European Commission. Once fully implemented, these RTS will form part of the single rulebook for EU securities markets.

  • (8.10.2019) ESMA publishes final report on CSDR Guidelines on standardised procedures and messaging protocols

The European Securities and Markets Authority (ESMA) has published its final report on the Guidelines on standardised procedures and messaging protocols. The Guidelines aim to clarify the scope of the requirement contained in Article 6(2) of the Central Securities Depositories Regulation (CSDR) and provide guidance on the standardised procedures and messaging standards used for compliance.

Investment firms are expected to take measures to limit the number of settlement fails and to – at least – set up arrangements with their professional clients to ensure prompt communication of the necessary settlement information.

ESMA, following a public consultation, has drafted final guidelines which set out how investment firms should ensure the requirements set out in Article 6(2) and Article 2 of the RTS on Settlement Discipline are complied with.

  • (4.10.2019) Speech by Robert Ophèle (AMF) on AI, Blockchain & Cryptoassets - Disruptive technology shaping the future of regulation & compliance

Speech by Robert Ophèle, Chairman of the Autorite des Marches Financiers (AMF), on how AI, Blockchain & Cryptoassets and other Disruptive technology is shaping the future of regulation and compliance.

Robert discusses the necessity for Financial Authorities to rapidly adapt their regulatory stance to these possibly disruptive technologies in order both to suppress the regulatory barriers blocking their experimentation and to mitigate the new risks they triggered. 

Kind regards,


The AMIC Secretariat



Tel: +44 20 7213 0348



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