AMIC secretariat published its fourth COVID-19 market update podcast in which Robert Parker, Chairman of AMIC, reviews the market events of the last week, with specific focus on the IMF's growth forecasts for 2020 and 2021 and the additional actions recently taken by the Federal reserve to support credit and the market for high-yield corporate debt.
AMIC publishes its response to the EC consultation on the EU Ecolabel for financial products. While AMIC supports the idea of an EU quality stamp for ESG retail investments funds it also warns that some important changes are required to ensure the success of this new label. AMIC recommends in particular broadening the list of eligible assets for diversification purposes but also to further support companies transitioning to a lower-carbon business model.
ICMA published the 2020 ICMA GMRA legal opinions which support the Global Master Repurchase Agreement (GMRA), the standard agreement for international repo transactions, including a new opinion for Argentina.
ICMA Asset Management and Investors Council (AMIC) Regulatory Update
Consultation and regulatory delays (COVID-19)
9 April 2020 ESMA extends MiFID II/MiFIR transparency review report consultation to 14 June 2020
ESMA has decided, in view of the effects of the ongoing COVID-19 pandemic on stakeholders and market participants, to further extend the response date for the consultation on the MiFID II/MiFIR review report on the transparency regime for non-equity instruments and the trading obligation for derivatives to 14 June 2020.
9 April 2020 ESMA postpones publication dates for annual non-equity transparency calculations and quarterly SI data
ESMA has issued a Public Statement postponing the application of the annual non-equity transparency calculations and the calculations for the systematic internaliser test for derivatives, ETCs, ETNs, emission allowances and structured finance products (SFPs) under MiFID II.
9 April 2020 ESMA promotes coordinated action regarding benchmarks external audit requirements
ESMA has issued a Public Statement to promote coordinated action by National Competent Authorities (NCAs) regarding the timeliness of fulfilling external audit requirements for interest rate benchmark administrators and contributors to interest rate benchmarks.
Short selling bans (COVID-19)
15 April 2020 ESMA issues positive opinions on short selling bans by Austria, Belgium, France, Greece and Spain
ESMA has issued opinions agreeing to the renewal of the emergency restrictions on short selling and similar transactions by the Finanzmarktaufsicht (FMA) of Austria, the Financial Securities and Markets Authority (FSMA) of Belgium, the Autorité des Marchés Financiers (AMF) of France, the Hellenic Capital Market Commission (HCMC) of Greece and the Comisión Nacional del Mercado de Valores (CNMV) of Spain.
Risk management (COVID-19)
15 April 2020 FSB G20 report on international cooperation to address the financial stability implications of COVID-19
The Financial Stability Board (FSB) has published a report delivered to the G20 on international cooperation and coordination to address the financial stability implications from COVID-19. Among others the FSB said that it was closely monitoring the ability of financial intermediaries, such as certain investment funds, to effectively manage liquidity risk. The reports provides an overview of policy measures taken so far.
Fiscal and monetary stimulus (COVID-19)
9 April 2020 Federal Reserve expands its asset purchase program to high-yield bonds
The Federal Reserve took additional actions to provide up to $2.3 trillion in loans to support the economy. This funding will assist households and employers of all sizes and bolster the ability of state and local governments to deliver critical services during the coronavirus pandemic. It also expands its asset purchase program to junks bonds on primary and secondary markets and via ETFs.
Mapping of policy measures (COVID-19)
9 April 2020 ESRB mapping policy measures in response to the COVID-19 pandemic
This ESRB spreadsheet has provided information on the policy measures taken by Member States, EU institutions and national authorities in response to the coronavirus (COVID-19) pandemic. It is updated on a regular basis.
14 April 2020 ECB mapping of prudential measures in response to the COVID-19 pandemic
The ECB has mapped prudential measures take by EU and national authorities to address the impact of the coronavirus (COVID-19) outbreak on the financial sector. Several euro area macroprudential authorities (including central banks and banking supervisors) have reduced capital requirements, including the countercyclical capital buffer (CCyB) and other macroprudential buffers. The overall impact of these measures will be to free up more than €20 billion of Common Equity Tier 1 capital held by euro area banks, thereby facilitating the absorption of losses and supporting the provision of credit to the economy. The ECB endorses the macroprudential measures taken by euro area authorities so far.
15 April 2020 ECB communication to reporting agents in the context of COVID-19
The ECB confirmed its intention to collect on a timely basis data of a quality that is fit for purpose, in order to have at its disposal the necessary statistical information to adjust all of its measures. The national central banks and reporting agents are invited to afford each other the degree of cooperation necessary to achieve this outcome in the context of their specific national circumstances, and they will have the full support of the ECB in their efforts.
15 April 2020 ESMA issues new Q&A on alternative performance measures in the context of COVID-19
ESMA has issued a Q&A to provide guidance to issuers on the application of the ESMA Guidelines on Alternative Performance Measures (APM Guidelines) in the context of the COVID-19 pandemic.
9 April 2020 CSSF publishes its Circular CSSF
The CSSF has published its Circular CSSF 20/739 (hereafter the “CSSF Circular””) on application of the “Guidelines on the Reporting under Articles 4 and 12 SFTR1 (Ref. ESMA-70-151-2838)” (hereafter the “Guidelines”), published on 6 January 2020 by the European Securities and Markets Authority (ESMA).
15 April 2020 IOSCO report provides new data on global hedge fund industry
The Board of the International Organization of Securities Commissions (IOSCO) has published its Report on the Fifth IOSCO Hedge Fund Survey, which provides regulators new insightsinto the global hedge fund industry and "the potential systemic risks this industry may pose to the international financial system."
17 April 2020 ESMA and MAS sign MoU on Singapore's financial benchmarks
ESMA and the Monetary Authority of Singapore (MAS) have signed a Memorandum of Understanding (MoU), completing the process to allow the use of Singapore’s financial benchmarks in the EU. Under the MoU, ESMA and MAS will share information and supervisory activities on Singapore-regulated financial benchmarks.
14 April 2020 IOSCO steps up its efforts to address issues around sustainability and climate change
The Board of the International Organization of Securities Commissions has published its report on Sustainable Finance and the Role of Securities Regulators and IOSCO, which seeks to help market participants address issues related to sustainability and climate change.
The Sustainable Finance Network of IOSCO (SFN) prepared the report, which highlights three recurring themes that involve multiple and diverse sustainability frameworks and standards, including sustainability-related disclosure, a lack of common definitions of sustainable activities, and greenwashing and other challenges to investor protection.