AMIC secretariat published on 6 May its weekly COVID-19 market update podcast in which Robert Parker, Chairman of AMIC, reviewed the market events of the last week, with a specific focus on the meaning of the German Constitutional Court ruling for the ECB asset purchase programs, the state of the economic recovery in Asia and the resurgence of the Brexit topic for investors.
ICMA published on 4 May a podcast on its memorandum on the EU’s sustainability disclosure regime. The publication seeks to provide the market with an initial comprehensive and practical overview of the new and amended EU legislation introducing significant sustainability and ESG related disclosure requirements that will impact all participants in the European capital markets.
ICMA Asset Management and Investors Council (AMIC) Regulatory Update
4 May 2020 ESAs propose one-year deferral for bilateral margin requirements under EMIR in response to the COVID-19
The European Supervisory Authorities (EBA, EIOPA and ESMA – ESAs), in response to the COVID-19 outbreak have published joint draft Regulatory Technical Standards (RTS) to amend the Delegated Regulation on the risk mitigation techniques for non-centrally cleared OTC derivatives (bilateral margining), under the European Markets Infrastructure Regulation (EMIR), to incorporate a one-year deferral of the two implementation phases of the bilateral margining requirements.
4 May 2020 CSSF new circular on anti-money laundering and counter terrorism financing in the context of COVID-19
The CSSF published Circular CSSF 20/740 to provide Luxembourg professionals guidance on how to abide by anti-money laundering and counter terrorism financing rules during this crisis.
7 May 2020 The Financial Services Regulatory Initiatives Forum launches Grid to help financial firms’ planning
The Financial Services Regulatory Initiatives Forum has launched a new initiative to help financial firms prepare for upcoming regulatory work - the Regulatory Initiatives Grid. The introduction of the Grid – announced by Chancellor of the Exchequer Rishi Sunak in March’s Budget – has been brought forward by the Forum to help firms stretched by the impact of coronavirus (Covid-19).
7 May 2020 Statement by the Prudential Regulation Authority on prioritisation in light of Covid-19
Further to the joint announcement on Friday 20 March 2020 from the Bank of England (‘Bank’) and the Prudential Regulation Authority (‘PRA’), setting out a number of measures aimed at alleviating operational burdens on PRA-regulated firms (‘firms’), the PRA has announced further details of its plans to support firms and enable them, and the PRA, to focus their resources on the highest priority work. The PRA’s work, alongside that of the wider Bank, has focused on ensuring that banks and insurers can play their part in supporting the UK economy to respond to the significant impact of Covid-19.
5 May 2020 ECB takes note of German Federal Constitutional Court ruling and remains fully committed to its mandate
The Governing Council has received a preliminary briefing by the governor of the Bundesbank and by the legal department of the European Central Bank (ECB). The ECB has taken note of the judgment by the German Federal Constitutional Court regarding the Public Sector Purchase Programme (PSPP).
7 May 2020 Bank Rate maintained at 0.1% - May 2020
Our MPC has voted unanimously to maintain Bank Rate at 0.1%. The Committee voted by a majority of 7-2 for the Bank of England to continue with the programme of £200 billion of UK government bond and sterling non-financial investment-grade corporate bond purchases, financed by the issuance of central bank reserves, to take the total stock of these purchases to £645 billion.
4 May 2020 FSB consults on guidance on assessing the adequacy of financial resources for CCP resolution
The Financial Stability Board (FSB) has published a public consultation report on Guidance on financial resources to support CCP resolution and on the treatment of CCP equity in resolution. The guidance will assist central counterparty (CCP) resolution authorities.
5 May 2020 Update of position limits for certain commodity derivative contracts
The FCA has published updated position limits for certain commodity derivative contracts traded on UK trading venues. The limits have been established under the Markets in Financial Instruments Regulations 2017 (MIFI Regs).
5 May 2020 AMF complies with ESMA guidelines on Stress testing scenarios for money market funds
The AMF has decided to comply with ESMA's guidelines on stress testing scenarios for money market funds and is updating its guidance position DOC-2018-05 accordingly. Nevertheless, the AMF has stressed the need for a rapid update of these guidelines.
6 May 2020 EBA proposes framework for STS synthetic securitisation
The EBA has published its proposals for developing a simple, transparent and standardised (STS) framework for synthetic securitisation. This proposal, which is limited to balance-sheet securitisation, includes a list of criteria to be considered when labelling the synthetic securitisation as ‘STS' and provides the pros and cons of a potential differentiated capital treatment for this type of securitisation.
SME growth markets
6 May 2020 ESMA consults on SME growth markets
ESMA has launched a consultation on the functioning of the Small and Medium-sized enterprises (SME) Growth Market regime in the European Union (EU) and on two draft technical standards, introduced by the amendments to the Market Abuse Regulation (MAR) for the promotion of the use of SME Growth Markets.
6 May 2020 ESMA extends four trade repositories registrations to include securities financing transactions reporting
ESMA has approved the extension of registrations of four trade repositories (TRs) to include securities financing transactions (SFT) reporting under the Securities Financing Transactions Regulation. The TRs concerned are DTCC Derivatives Repository plc, UnaVista TRADEcho B.V., Krajowy Depozyt Papierów Wartościowych S.A. and REGIS-TR S.A. with effect from 7 May 2020.
6 May 2020 ESMA reminds firms of conduct of business obligations under MiFID II
ESMA has issued a Public Statement on the risks for retail investors when trading under the highly uncertain market circumstances due to the COVID-19 pandemic. ESMA also reminds investment firms of the key conduct of business obligations under MiFID when providing services to retail investors.