Latest ICMA developments
On 7 September, ICMA published a briefing note on CSDR mandatory buy-ins and the requirement to appoint a buy-in agent.
On 7 September, ICMA published an updated version of the ICMA Recommendations for Reporting under SFTR.
On 10 September, AMIC published its bi-weekly COVID-19 market update podcast in which Robert Parker, Chairman of AMIC, decipher the market events of the last two weeks, in light of the recent Tech sell-off, central banks meetings in September and political risks lying ahead (Brexit, US elections, and China-US tensions).
On 11 September, AMIC submitted its response to the EC consultation on investment research. The response explains that partially reviewing unbundling rules will not contribute to revive SME research to a meaningful extent as a majority of members would practically not be able to make use of the options proposed by the EC. AMIC therefore recommends the EC consider other policy options to support SME research and funding in the context of the post-COVID recovery (free-trial and issuer-sponsored research).
Coming up next:
On 16 September, AMIC ExCom will hold its quarterly meeting.
ICMA Asset Management and Investors Council (AMIC) Regulatory Update
8 September New EU commissioner in charge of financial services
The EC President von der Leyen appointed a new commissioner in charge of financial services, Ms McGuinness. She will be in charge of financial services, financial stability and the Capital Markets Union. Executive Vice-President Valdis Dombrovskis will now assume responsibility for the trade portfolio, and he will remain the Commission's representative on the Eurogroup, alongside with Commissioner Gentiloni.
9 September Insights from the PRI practitioners group on testing the taxonomy
The PRI report has shared insights from the first comprehensive set of case studies around how to use the EU taxonomy. Starting in late 2019, over 40 investment managers and asset owners worked to implement the taxonomy on a voluntary basis in anticipation of upcoming European regulation.
Closet Index Funds
9 September Investors see lower net returns from potential closet index funds
ESMA has published a Working Paper on Closet Indexing Indicators and Investor Outcomes. The study finds that investors can expect lower net returns from closet indexers than from a genuinely actively managed fund portfolio.
7 September ESMA makes the annual transparency calculations for non-equity instruments other than bonds optional
ESMA has decided that trading venues and investment firms may postpone, for operational reasons, the application of the annual transparency calculations for non-equity instruments other than bonds to 21 September 2020.
9 September ESMA issues latest double volume cap data
ESMA has updated its public register with the latest set of double volume cap (DVC) data under the Markets in Financial Instruments Directive (MiFID II).
Securities Financing Transactions
7 September FSB extends implementation timelines for securities financing transactions
The FSB has announced extensions to the implementation timelines for minimum haircut standards for non-centrally cleared securities financing transactions (SFTs), to ease operational burdens on market participants and authorities, and thereby assist them in focusing on priorities from the impact of COVID-19.
10 September ECB monetary policy decisions
The European Central Bank announced it will hold its key policy rate at –0.5% and its main refinancing rate at 0%, and continue its emergency debt-buying into next year.