Latest ICMA developments
On 2 October, ICMA published its response to the EC consultation on the EU Green Bond Standard (EU GBS).
On 6 October, ICMA published amendments to the ICMA Primary Market Handbook.
On 6 October, ICMA published translations of the Sustainability-Linked Bond Principles.
On 8 October, ICMA published its Quarterly Report for the Fourth Quarter of 2020.
On 8 October, ICMA published its bi-weekly AMIC market update podcast.
ICMA Asset Management and Investors Council (AMIC) Regulatory Update
1 October 2020 Procyclical impact of downgrades of corporate bonds on markets and entities across the financial system
The ESRB published a letter to European Commission and ESMA on procyclical impact of downgrades of corporate bonds on markets and entities across the financial system. "Keeping in mind the progress made since 2008, the ESRB hopes that this letter will encourage the Commission and ESMA to strengthen previous efforts and focus on further limiting unwanted effects of mechanistic reliance on CRAs during times of crisis."
7 October Progress Report on G20 Data Gaps Initiative
The FSB and the IMF published the Fifth Progress Report – Countdown to 2021 in light of COVID-19 on the implementation of the second phase of the G20 Data Gaps Initiative (DGI-2). The report will be submitted to the G20 Finance Ministers and Central Bank Governors ahead of their meetings in Washington D.C. in mid-October.
5 October EIOPA consults on the supervision of the use of climate change scenarios in ORSA
The European Insurance and Occupational Pensions Authority (EIOPA) has published a consultation on the use of climate change risk scenarios in the Own Risk and Solvency Assessment (ORSA) in the form of a draft supervisory Opinion.
7 October SFDR level 2 measures to be delayed, but not level 1
According to the German Funds Association (BVI), the EC has confirmed in a letter to the trade association that the regulatory technical standards (Level 2 RTS) which underpin the EU's Sustainable Finance Disclosures Regulation (SFDR) will be delayed. The revised compliance date for the Level 2 RTS has not been specified, but it is likely to be January 2022. However, it will still be necessary for firms to comply with the "high level and principle-based requirements" of the Level 1 text, as from the original compliance date of 10 March 2021.
Money Market Funds
2 October ESMA announces update to reporting under the money market funds regulation
ESMA has announced an update of the validations of the technical instructions for reporting under the Money Market Funds Regulation (MMFR).
8 October New rules to facilitate EU crowdfunding
The European Parliament has approved new rules on 5 October 2020 that will enable crowdfunding platforms to easily provide services across the EU single market.
7 October 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).
5 October 2020 ESMA publishes updated Q&As on securitisation and guidelines on portability of information between securitisation repositories
ESMA has published its final report on the Guidelines on portability of information between securitisation repositories under the Securitisation Regulation and new Q&As on securitisation providing, inter-alia, guidance on how to report certain underlying exposures which benefit from a COVID-related debt moratorium or payment holiday.
7 October ECB publishes summary of feedback on public consultation on compounded €STR rates
The public consultation launched by the ECB on the possible publication of backward-looking compounded rates has received a significant number of replies coming from a broad range of market participants across different countries. The replies were supportive of the main parameters and elements of the envisaged methodology, and contained some suggestions, which the ECB will consider when finalising the methodology.
9 October ESMA Executive Director, Verena Ross, keynote speech
ESMA Executive Director, Verena Ross, addressed AFME’s 4th Annual European Compliance and Legal Conference raising several topics such as the impact of COVID-19 on the financial markets, the review of MiFID, MiFIR and the Market Abuse Regulation, and ESMA’s priorities laid down in its 2021 Work Programme.
RegTech & SupTech
9 October FSB report on RegTech and SupTech
The FSB published a report on the use of supervisory (SupTech) and regulatory (RegTech) technology by FSB members and regulated institutions. The report finds that technology and innovation are transforming the global financial landscape, presenting opportunities, risks and challenges for regulated institutions and authorities alike.The report is being delivered to G20 Finance Ministers and Central Bank Governors for their virtual meeting on 14 October.