AMIC Regulatory Update

ICMA March publications


1 March - ICMA response to IOSCO survey on bond ETFs in the context of March/April 2020 market meltdown

8 March - ICMA joint industry letter on the reporting of issuer LEIs under SFTR

11 March - ICMA joint industry letter to the EC and ESMA on implementation of the CSDR Settlement Discipline Regime

12 March - ICMA response to ESMA consultation paper on algo trading

18 March – AMIC statement on ESG transparency of Asset-backed Securities

30 March - ICMA updated its repo best practices guide to support post-trade efficiency



AMIC March Regulatory Update

Sustainable finance
1 March - ESMA advice on taxonomy-alignment of non-financial undertakings and asset managers

ESMA has published its advice regarding the application of Article 8 of the Taxonomy Regulation, which covers the information to be provided by non-financial undertakings and asset managers on their level of taxonomy alignment.
9 March - EC published its last draft proposal for an EU Ecolabel for financial products
The EC has published its last draft proposal for an EU Ecolabel for financial products. This optional label available to UCITS and retail AIFs establish a set of requirements including among others a minimum level of investments in taxonomy aligned activities, ESG exclusion criteria and engagement obligations. The EC is expected to take a final decision on this file by the end of 2021.
17 March - ESAs consult on taxonomy-related product disclosures

The three European Supervisory Authorities (EBA, EIOPA and ESMA – ESAs) have issued a Consultation Paper seeking input on draft Regulatory Technical Standards (RTS) regarding the taxonomy disclosure obligations for article 8 and article 9 products under SFDR. 
24 March – NGFS report 'on adapting central bank operation to a hotter world'
The NGFS published a report outlining nine options for central banks to adjust their operational frameworks for monetary policy to account for climate-related risks.

Liquidity risk management

5 March - IOSCO consultation on liquidity management by open-ended funds

IOSCO launched a consultation on open-ended fund liquidity. The consultation seeks feedback on (1) the adoption of IOSCO's 2018 recommendations for liquidity risk management and (2) liquidity management by open-ended funds during the March/April 2020 market turmoil. 
24 March - ESMA assesses the compliance with UCITS liquidity rules and highlights areas for vigilance

ESMA published the results of the 2020 Common Supervisory Action (CSA) on UCITS liquidity risk management (LRM). The CSA showed that the overall level of compliance with the applicable rules is satisfactory in most cases, but there is scope for improvement in liquidity management for some UCITS analysed. The exercise also highlighted areas where ESMA will work to further promote convergence across National Competent Authorities (NCAs).
26 March - Joint Bank of England and FCA review of open-ended investment funds

The Bank of England and Financial Conduct Authority have published the findings of their joint survey of UK-authorised open-ended funds. The survey was conducted to inform the ongoing joint review by the BoE and the FCA on open-ended funds liquidity mismatch.
26 March - ESMA consults on the framework for EU money market funds

ESMA launched a consultation on potential reforms of the EU Money Market Funds Regulation (MMFR). ESMA aims to review the stress experienced by MMFs during the March 2020 crisis and assess the roles played by markets, investors and regulation, and proposes potential reforms.
Investment Funds
17 March - AMF position regarding the Alternative Investment Fund Managers Directive (AIFMD)

Ahead of the AIFMD’s review and in-line with the AMF’s response to the consultation of the European Commission, the regulator outlined its recommendations for a more effective supervision of alternative investment fund managers.
30 March – ESMA updates UCITS and AIFMD Q&As
ESMA has published updates to its UCITS and AIFMD Q&As.
LIBOR Transition

29 March - The FCA and the Bank of England encourage market participants in a switch to SONIA in the sterling non-linear derivatives market from 11 May

Following close engagement with market participants, the FCA and Bank of England support and encourage liquidity providers in the sterling non-linear derivatives market to adopt new quoting conventions for inter-dealer trading based on SONIA instead of LIBOR from 11 May this year. This is to facilitate a further shift in market liquidity toward SONIA, bringing benefits for a wide range of users as they move away from LIBOR.

Consumer Protection

17 March - ESMA sees high risk for investors in non-regulated crypto assets

ESMA published its first Trends, Risks and Vulnerabilities (TRV) Report of 2021. The Report analyses the impact of COVID-19 on financial markets during the second half of 2020 and highlights the increasing credit risks linked to significant corporate and public debt overhang, as well as the risks linked with investments in non-regulated crypto-assets. 

29 March - ESMA updates Q&A on Inducements

ESMA has updated its Questions and Answers on the implementation of investor protection topics under the Market in Financial Instruments Directive and Regulation (MiFID II/ MiFIR).



ICMA podcast      

A buyside view - bond pricing distribution today
17 March 2021 ICMA’s Liz Callaghan talks to Ricky Goddard, Head of trading at Schroders, about current bond pricing and axe distribution practices in the EU bond markets and the challenges that the market faces today. They discuss the importance of standardising axe information, which is the term commonly used to advertise buy or sell bond interests, the role of electronic & technology solutions in its distribution and the obstacles in achieving good quality and accurate bond pricing/axe data.

ICMA podcast      

Monthly Market update: ICMA Asset Management & Investors Council
10 March 2021 Robert Parker, Chair of ICMA's Asset Management and Investors Council, reviews the market events of the past weeks, including the sharp increase of the 10-year US treasury yield, inflation expectations and the portfolio rotation this has triggered among investors.


Check the ICMA Media Library for more podcasts and webinars.


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