Reform tracker

Take a quick overview of the major changes planned in financial services regulation with the Reform Tracker. Entries are colour-coded to reflect their current status: from blue-sky consultations to imminent implementation. Use the search bar and filters below to narrow your focus by country and sector. Alternatively, use the Regulatory Timeline tool for more information on timetables and deadlines.
  • Blue: No legislative proposal as of yet
  • Green: Legislative proposals published but not yet adopted/finalised
  • Yellow: Legislation in force but main substantial provisions not yet effective
  • Red: Legislation in force and main, substantial provisions now effective
  • Grey: Not proceeding
  • Magenta: No longer updated

Showing 1 - 10 of 20 matches filtered by 'Securities and derivatives'

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  • Subject:
    Packaged Retail and Insurance-based Investment Products (PRIIPs)
    Status:
    Packaged Retail and Insurance-based Investment Products (PRIIPs) Regulation (1286/2014) has been adopted but is not yet in force. The European Commission has delayed the entry into force by one year (previously expected to enter into force 31 December 2016). The PRIIPs Regulation and Delegated Regulations apply as of 1 January 2018.
    Last updated:
    02/01/2018
    Overview/summary:

    The Regulation on Key Information Documents for Investment Products (1286/2014) requires that intermediaries provide retail customers with a short, standard form Key Information Document (KID) before they invest in any Packaged retail and insurance-based investment products (PRIIPs, formerly PRIPs).

     

    PRIIPs is a ‘horizontal’ category of products that may take a variety of different forms (including funds, structured deposits, some pensions and insurance products) but which fulfil similar functions: capital accumulation over a medium-to-long term at more than the risk-free rate, where the investor does not hold assets directly but by means of some sort of ‘wrapper’. The Regulation was part of a wider legislative package on such products, also including IDD and UCITS V.

     

    The PRIIPs regulation entered into force on 29 December 2014. The European Commission has delayed the entry into force by one year (previously expected to enter into force on 31 December 2016). This followed on from the European Parliament's rejection of RTS relating to the KID and calls from Member States to postpone the regulation. The European Commission is now working with the ESAs to resubmit the RTS to address some of the concerns raised (certain revised RTS were met with no objection in April 2017). It is estimated that the revised PRIIPs framework should be in place during the first half of 2017 and apply as of 1 January 2018.

    Publications by date:

     

    3 July 2012 Commission publishes proposal for regulation imposing KID requirement.
    22 October 2013 ECON voted on Parliament's report and approved proposed Regulation.
    20 November 2013 European Parliament voted to adopt amendments to legislative proposal for a Regulation on KIDs for PRIPs.
    4 April 2014 Political agreement announced on PRIPS (now known as 'PRIIPs', but with a similar scope as before).
    9 December 2014 Regulation No 1286/2014 (PRIIPS) published in the Official Journal to enter into force 20 days after publication (29 December 2014).
    13 December 2014  A corrigendum to the text of the PRIIPS KID Regulation was published in the OJ correcting the date in Article 8(5) regarding the date by which the ESAs must submit the draft regulatory technical standards to the Commission (from 31 March 2015 to 31 March 2016).
    23 June 2015 The European Supervisory Authorities published a technical discussion paper on risk, performance scenarios and cost disclosures for KIDs for PRIIPS.
    3 July 2015 EIOPA delivered its technical advice on criteria and factors to be taken into account in applying product intervention powers under the PRIIPS regulation to the European Commission.
    20 August 2015 The European Supervisory Authorities (EBA/EIOPA/ESMA) published responses to the technical discussion paper on risks, performance scenarios and cost disclosures on KIDs for PRIIPS.
    14 September 2015 Steven Maijoor, Chair of ESMA, delivered a statement to ECON in which he updated the committee on the work being done on the regulatory technical standards (RTS) under PRIIPS.
    9 November 2015  The European Commission published a study -  Consumer testing study of the possible new format and content for retail disclosures of packaged retail and insurance-based investment products. 
    11 November 2015  The ESAs launched a Joint Consultation Paper on PRIIPs Key Information Documents to gather stakeholder views on proposed rules on the content and presentation of the Key Information Documents (KID).
     6 January 2016 ESAs published corrections to errata found in formulae in Joint Consultation Paper on PRIIPs KID.
     6 January 2016 Insurance Europe published a note regarding concerns over the short timeframe in which the industry must  implement the KID for PRIIPs: Insurance Europe: PRIIPs implementation timeframe – extension required.
    10 February 2016 ESMA published responses to its earlier consultation on KID under PRIIPs. Draft RTS were submitted to the Commission for approval.
    11 March 2016 

    ESMA's Securities and Markets Shareholder Group published text of a letter it sent to Jonathan Hill and others which raised concerns over aspects of the PRIIPs Regulation, specifically the elimination of past performance in the contents of the KID, and its replacement by “future performance scenarios”. It urges amendments to the Level 1 Regulation before it enters into force on 31 December 2016.

    7 April 2016 EBA/EIOPA/ESMA published finalised RTS on KIDs for PRIIPs.
    8 April 2016 Insurance Europe published a press release regarding PRIIPs. Specifically, Insurance Europe maintains that the proposed PRIIPs KID will mislead consumers owing to design faults.
    26 April 2016 ESMA published its responses to the Commission's Green Paper on retail financial services: including responses in relation to IDD, MiFID II, PRIIPs, UCITS, personal pension products and covered bonds, redress and the Impact of digital technologies on the retail financial markets.
    26 May 2016 Insurance Europe published a new paper highlighting technical concerns over final draft RTS. 
    30 June 2016 European Commission Delegated Regulation with regard to the presentation, content, review and revision of key information documents and the conditions for fulfilling the requirement to provide such documents has been adopted.
    1 July 2016 Joint letter on the supervisory convergence work by the ESAs on PRIIPs was published - specifically noting the work on level 3 materials.
    15 July 2016 Commission Delegated Regulation of 14.7.2016 supplementing Regulation (EU) No 1286/2014 of the European Parliament and of the Council with regard to product intervention has been adopted by the European Commission. 
    1 September 2016 ECON has unanimously rejected the Commission's investor protection proposals, saying they were "misleading" and "flawed", with much criticism directed at the KID.

    Further past dates are accessible via the news feed on the PRIIPs page.

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  • Subject:
    Client Assets Sourcebook (FCA)
    Status:
    FCA: PS14/9 (with final rules) published - relates to all firms that are subject to CASS because they conduct investment business and hold client money, custody assets, collateral and or mandates in relation to that investment business. This includes loan-based crowdfunding firms who became subject to client money rules in CASS 7 by the changes published in PS14/4. CASS rules changes following PS14/9 came into force in three phases: 1 July 2014, 1 December 2014 and 1 June 2015. Firms could choose to begin complying with any of the requirements introduced by PS14/9 before the relevant requirement came into force. FCA Business Plan 2016/17 notes client assets is part of ongoing work. Moreover, in March 2016, HM Treasury and the FCA have lauched consultations relating to the Bloxham report and SAR.
    Last updated:
    21/02/2017
    Overview/summary:

    The Client Assets Sourcebook (CASS) is the section of the FCA handbook containing the requirements relating to holding client assets and client money. The FCA consulted on substantial changes to these rules from July-August 2013 (CP13/5); in particular, a new and faster system for distributing client money in the event of an insolvency (the 'speed proposal'). This was complicated by the wide-ranging review of the Special Administration Regime (SAR) - the Bloxham report - being undertaken at the same time. Policy Statement 14/9 (PS14/9), including final changes to CASS, was published in June 2014; it was revealed there that the FCA has postponed consideration of the 'speed proposal' - there have been no further developments regarding the ‘speed proposal’ and it has, ostensibly, been dropped.

    The rules in PS14/9 affect all firms that are subject to CASS because they conduct investment business and hold client money, custody assets, collateral and or mandates in relation to that investment business. This includes loan-based crowdfunding firms who became subject to client money rules in CASS 7 by the changes published in PS14/4.

    The FCA’s Business Plan 2015/16 highlights that the FCA will review the client money distribution rules in line with HM Treasury’s SAR review. The FCA published final client money rules for insurance intermediaries in 2015. Additionally, the FCA will consider the impact of international client assets initiatives and EU legislation (such as EMIR) on the CASS sourcebook and make any necessary amendments.

    The FCA's Business Plan 2016/17 notes that part of prudential work will include continuing 'to ensure firms have appropriate mechanisms to protect client assets to ensure consumers are protected in the event of failure'. The FCA also highlights that conflicts of interest/client money remain a cause of risk across markets and will work with firms to ensure robust policies are in place to mitigate this risk.

    In March 2016, further to the Bloxham report, HM Treasury published Reforms to the investment bank special administration regime. Topics covered in this consultation paper include transfers of client assets; the SAR bar date mechanism; interaction of SAR and CASS; procedural and administrative proposals (including an enhanced role for FSCS) and lessons learned from case law. HM Treasury has also published a draft SI (The Investment Bank (Amendment of Definition) and Special Administration (Amendment) Regulations 2016).

    In addition, the FCA published DP16/2: CASS 7A and the Special Administration Regime Review - it seeks feedback on CASS 7A, and how these rules work with the Special Administration Regime (SAR). It also sets out the FCA’s response to the recommendations in the Bloxham review which had been addressed to the FCA and seeks industry views on the discussion points raised and contains FCA’s response to the ‘speed proposal’, which was proposed in CP13/5.

    In January 2017 the FCA launched a consultation CP17/2 on CASS 7A and the SAR. The paper seeks feedback on proposed changes to the CASS rules affecting the return of client assets, against the backdrop of the amendments to the SAR Regulations; explains why certain proposals in CP13/5 and DP16/2 are not being taken forward and seeks feedback on minor consequential changes to CASS 7 and CASS 7A to address the forthcoming indirect clearing requirements under EMIR and MiFIR regulatory technical standards.

    Publications by date:

     

    July 2013 CP 13/5 published.
    April 2013 HM Treasury publishes consultation on the special administration regime for payment and settlement systems (SAR).
    11 October 2013 Responses to CP 13/5 required.
    January 2014 HM Treasury published the Final Review of the Investment Bank Special Administration Regulations 2011 conducted by Peter Bloxham.
    10 June 2014 PS 14/9 published.
    1 July 2014 Some PS14/9 rule changes came into force.
    1 December 2014 Certain PS 14/9 rules and guidance came into force relating to the provision of information to or obtaining the agreement of new clients and the documenting of agreements and arrangements with any new counterparties with whom firms deposit or place custody assets or client money.
    March 2015 FCA launched Quarterly Consultation No.8 including proposed minor amendments to CASS.
    1 June 2015 From this date FCA authorised firms needed to comply fully with all of the changes under PS14/9.
    9 November 2015 FRC published Providing assurance on client assets to the FCA.
    9 March 2016 

    FCA published DP16/2: CASS 7A and the Special Administration Regime Review.

    HM Treasury published Reforms to the investment bank special administration regime.

    21 March 2016 FCA published PS16/8: FCA Handbook changes regarding the segregation of client money on loan-based crowdfunding platforms, the Innovative Finance ISA, and the regulated activity of advising on peer-to-peer agreements.
    4 April 2016 FCA Business Plan 2016/17 published -  client assets forms part of ongoing work.
    16 August 2016

    FCA provides an update on its earlier review of the client money rules for insurance intermediaries.

     

    Further past dates are accessible via the client assets newsfeed here.

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  • Subject:
    Benchmarks (EU)
    Status:
    Amendments on benchmark manipulation added to MAD II. On 29 June 2016 the Regulation was published in the Official Journal of the EU, and the majority of provisions were in force and in effect from 1 January 2018.
    Last updated:
    02/01/2018
    Overview/summary:

    The proposed Regulation on indices used as benchmarks in financial instruments and financial contracts is part of the EU-level response to revelations of LIBOR and EURIBOR manipulation in 2012. The Regulation would require improved governance and controls for benchmark-setting processes; detailed provisions concerning the data and methodologies to be used; and external regulatory supervision of benchmarks. Amendments to the recast Market Abuse Directive proposal (MAD II) were also adopted, making the manipulation of benchmarks a criminal offence.

    The proposed Regulation was adopted by the European Commission and the European Parliament on 28 April 2016. On 17 May 2016 the Council formally adopted the Regulation. On 29 June 2016 the Regulation was published in the Official Journal of the EU.

    To see our Reform Tracker item on Benchmarks specific to the UK please click here.

    Publications by date:

     

    25 July 2012 EC adopts amendments to MAD II criminalising the manipulation of benchmarks.
    September 2012 EC consultation on benchmarks and indices.
    18 September 2013 Original draft proposal for a Regulation on indices used as benchmarks.
    October 2013 Committee referral announced in Parliament, 1st reading/single reading.
    January 2014 European Central Bank publishes opinion/report.
    January 2014 Economic and Social Committee publishes opinion/report.
    February 2015 EU Council issues press release backing European Commission proposal to fight against the manipulation of financial benchmarks.
    March 2015 Vote in Committee, 1st reading/single reading.
    April 2015 Committee report tabled for plenary, 1st reading/single reading.
    19 May 2015 European Parliament agrees negotiating mandate for regulation of financial benchmarks.
    25 November 2015 Council of the EU, European Parliament, and the Commission reached an agreement on the  on the proposed Regulation on financial benchmarks. A compromise was reached on the third country regime.
    9 December 2015 The Permanent Representatives Committee approved, on behalf of the Council, a compromise agreed with the European Parliament. The regulation will now be submitted to the European Parliament for a vote at first reading, and to the Council for final adoption. 
    15 February 2016 ESMA published a discussion paper on implementation of the forthcoming Benchmarks Regulation.
    23 March 2016 EBA published Decision regarding the formula to be used by creditors when calculating the benchmark rate under the Mortgage Credit Directive.
    1 April 2016  FMLC published its response to ESMA's consultation paper of February 2016. The report highlights areas of legal uncertainty.
    8 April 2016 ESMA published responses received regarding the Discussion Paper on Benchmarks Regulation.
    28 April 2016  European Parliament adopted the proposed Regulation.
    12 May 2016 Council published an 'I' note in respect of the proposed Benchmarks Regulation.
    17 May 2016 Council formally adopted the proposed Regulation.
    27 May 2016 ESMA launched a consultation on draft technical advice under the Benchmarks Regulation.
    10 June 2016 Council of EU published revised text of the Regulation.
    29 June 2016 Regulation was published in the OJ.
    19 July 2016 FSB published a progress report on implementation of its July 2014 recommendations to reform major interest rate benchmarks.
    12 August 2016 Commission Implementing Regulation (EU) 2016/1368 of 11 August 2016 establishing a list of critical benchmarks used in financial markets pursuant to Regulation (EU) 2016/1011 of the European Parliament and of the Council has been published in the Official Journal.
    29 September 2016 ESMA launched a consultation on draft technical standards under the Benchmarks Regulation.
    3 October 2016 ESMA has developed model written arrangements that may be used by administrators of critical benchmarks according to Article 46(6) of the Benchmarks Regulation.
    10 November 2016 ESMA published finalised technical advice regarding rules for financial benchmarks.
    21 November 2016 Commission Delegated Regulation (EU) 2016/2021 of 2 June 2016 supplementing Regulation (EU) No 600/2014 of the European Parliament and of the Council on markets in financial instruments with regard to regulatory technical standards on access in respect of benchmarks has now been published in the Official Journal.

    Further past dates are accessible via the Benchmarks newsfeed here.

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  • Subject:
    Foreign Account Tax Compliance Act (FATCA)
    Status:
    FATCA in effect, applying to withholdable payments made on or after 1 January 2013.
    Last updated:
    29/11/2016
    Overview/summary:

    The Foreign Account Tax Compliance Act (FATCA) is a US Congressional Act designed to target offshore evasion by identifying US citizens receiving unreported income outside the US. International co-operation with FATCA was obtained by means of various intergovernmental agreements; under these agreements, financial institutions in the EU (and elsewhere) are required to report identifying information and account details for any US account holders to national authorities (e.g. HMRC in the UK), who in turn pass this information on to the US Internal Revenue Service.

    This reform tracker item is no longer updated.

    Publications by date:

     

    18 March 2010 US Hiring Incentives to Restore Employment (HIRE) incorporating FATCA signed in.
    July 2012 France, Germany, Italy, Spain, UK and US announce publication of the Model Intergovernmental Agreement to Improve Tax Compliance and to Implement FATCA.
    12 September 2012 (UK) UK-US FATCA Agreement signed. End of 2012: UK draft implementing legislation published. The IGA reduces some of the administrative burden of complying with the US regulations, and provides a mechanism for UK financial institutions to comply with their obligations without breaching the data protection laws.
    28 January 2013 Final US Regulations published.
    31 May 2013 (UK) Further draft regulations and guidance notes published by HMT.
    12 July 2013 The IRS issued a notice providing for an effective six month delay for all substantive provisions.
    6 August 2013 (UK) The International Tax Compliance (United States of America) Regulations 2013 SI 2013/1962 made.
    1 September 2013 (UK) The International Tax Compliance Regulations come into force.
    19 May 2014 IRS published  Notice 2014-33 (IRB 2014-21) announcing a transition period for the purposes of IRS enforcement and administration with respect to the implementation of FATCA by withholding agents, foreign financial institutions, and other entities.
    25 August 2014 IRS published Revenue Procedure 2014-47 (IRB 2014-35) regarding updated withholding foreign partnership and withholding foreign trust agreements.
    3 September 2014 (UK) HMRC has published revised guidelines on the implementation of FATCA.
    7 October 2014 IRS published Notice 2014-59 on the modified applicability of dates for the standards of knowledge applicable to a withholding certificate or documentary evidence to document certain payees and the circumstances under which a withholding agent or payor may rely on documentary evidence provided by a payee instead of a withholding certificate to document the foreign status of the payee.
    1 December 2014 IRS published Announcement 2014-38 update on jurisdictions treated as of they had an IGA in effect.
    1 January 2015 US IRS deadline for reporting Model 1 FFIs to ensure that they are included on the IRS FFI list.
    26 March 2015 (UK) HM Treasury published summary of responses regarding their earlier consultation on implementing agreements under the global standard on automatic exchange of information to improve international tax compliance.
    31 March 2015 IRS reporting deadline for FFIs in non-IGA jurisdictions and FFIs in Model 2 IGA jurisdictions.
    24 September 2015 The Competent Authority of the United States has signed Competent Authority Arrangements (CAA) with the Competent Authorities of Australia and the United Kingdom.
    20 November 2015  The International Tax Compliance (Amendment) Regulations 2015/1839  entered into force. The Regulations give effect to agreements and arrangements reached between the UK and other jurisdictions to improve international tax compliance. 
    3 May 2016  US Court dismisses case against FATCA disclosures.
    12 May 2016 (UK) HMRC published in final form its International Exchange of Information Manual. The IEIM incorporates in one place HMRC’s guidance on FATCA, the OECD’s Common Reporting Standard, the EU’s Council Directive on Administrative Cooperation and the UK’s Inter-Governmental Agreement with the Crown Dependencies and Overseas Territories.
    30 June 2016 This date marks the end of the two-year 'grace period' for compliance with FATCA granted by the IRS. From this date, foreign FIs without a validated FATCA classification will default to a ‘withholding’ status.

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  • Subject:
    Benchmarks UK
    Status:
    LIBOR administration transferred from BBA to ICE Benchmark Administration Ltd; EU Directive on benchmarks used as indices has been published in the Official Journal of the EU and will be in force and in effect 18 months after 29 June 2016; UK criminal offence of 'misleading statements etc in relation to benchmarks' (s.91 FSA 2012) in force; from 1 April 2015, 7 new benchmarks were brought within the ambit of FSA 2012 (Order 2015/369). On 2 February 2016, the FCA published final rules which in essence bring forward the implementation of Art 37 MiFIR (these rules took effect as of 1 April 2016). FCA Business Plan 2016/17 notes that supervising the major UK FICC benchmarks is a 'planned activity'. As of 25 April 2016, the Bank of England is the administrator of the Sterling Overnight Index Average (SONIA) interest rate benchmark.
    Last updated:
    01/12/2017
    Overview/summary:

    The London Interbank Offered Rate (LIBOR) is a popular reference interest rate, which is calculated by averaging the rates that banks charge when lending to each other. In June 2012 it emerged that bankers had been manipulating the LIBOR rate by submitting inaccurate figures; this led to the Wheatley Review of LIBOR, which published its final report and recommendations in September 2012. Subsequent UK reforms included: making benchmark manipulation a criminal offence; bringing benchmark-setting into the FCA regulated activities regime; and removing LIBOR administration from the British Bankers’ Association and giving it ICE Benchmarks Administration Ltd.

    In February 2016, the FCA published PS16/4: Fair, reasonable and non-discriminatory access to regulated benchmarks. The provisions cover benchmarks users who are CCPs, MTFs and regulated markets. The FCA concludes that it is effectively bringing forward to 2016 the implementation of Article 37 of MiFIR (that is expected to apply from 2019). Rules entered into force on 1 April 2016.

    The FCA Business Plan 2016/17 (published April 2016) stated that supervising the major UK FICC benchmarks - now regulated as a result of the recommendations of FEMR - was a 'planned activity'.

    As of 25 April 2016, the  Bank of England is the administrator of the Sterling Overnight Index Average (SONIA) interest rate benchmark. In February 2017, further to the earlier consultation, the Bank of England published a supplementary consultation on reform of SONIA.

    In November 2017, The Bank of England and FCA announced that the working group on sterling risk-free reference rates will be given an extended mandate relating to the transition to the SONIA interest rate benchmarks. This will be from January 2018. The press release states "A key near-term priority for the working group will be to make recommendations relating to the potential development of term SONIA reference rates. This work is already underway and a public consultation is planned for the first half of 2018."

    There are also separate EU-level proposals for legislation concerned with benchmarks and indices. To read our Reform Tracker item on EU Benchmarks click here.

    Publications by date:

     

    January 2013 HMT began consultation on secondary instruments relevant to LIBOR under the Act.
    January 2013 ESMA and the EBA issued a joint consultation on the administration of EURIBOR, and the EBA issued advice to national authorities.
    11 January 2013 IOSCO publishes consultation on financial benchmarks.
    25 March 2013 PS 13/6 published, which outlines the framework for the regulation and supervision of benchmark activities, following CP12/36.
    1 April 2013 Financial Services Act 2012 commences (including provisions related to LIBOR).
    April 2013 IOSCO published a consultation report on principles for financial benchmarks (CR04/13).
    April 2013 ESMA/EBA principles on benchmarks apply.
    17 July 2013 IOSCO publishes the final report on Principles for Financial Benchmarks.
    18 September 2013 European Commission published legislative proposal for a Regulation on benchmarks (COM(2013) 641/3).
    June 2014 Chancellor’s announcement on the Fair and Effective Markets Review (FEMR).
    August 2014 FEMR made recommendations to HMT to add further 7 FICC under the regulated scope covering LIBOR.
    December 2014 FCA publishes CP14/32.
    March 2015 FCA publishes PS15/6 on bringing additional benchmarks into the regulatory and supervisory regime following on from CP14/32.
    1 April 2015 7 new benchmarks were brought within the ambit of FSA 2012 (Order 2015/369), along with amendments in the regulatory scope to reflect the needs of benchmarks set without quotes from regulated submitters.
    29 July 2015 FCA published thematic review TR15/11 on financial benchmarks.
    30 July 2015 The House of Commons’ Scrutiny Committee published its first report of session 2015-16; sections 31 and 32 consider MMFs and benchmarks.
    30 July 2015 The Bank of England published a consultation document which outlines proposals for a new sterling money market data collection and the way in which it aims to reform the Sterling Overnight Index Average (SONIA) benchmark interest rate.
    3 August 2015 IBA published a second position paper on the evolution of ICE LIBOR and provided a number of proposals (including extending the liquidity pool and extending the eligible counterparty types).
     1 October 2015 The FSB published a progress report on FX benchmarks reforms (further to its recommendations in 2014). The report noted that while good progress was being made, it is to be noted that FSB recommendations are intended to apply to all FX benchmarks, not just the WM/Reuters 4pm London fix. 
    2 February 2016 FCA published PS16/4: Fair, reasonable and non-discriminatory access to regulated benchmarks.
    26 February 2016  FCA published Handbook Notice 30: Instruments. Including Benchmarks (Amendment No 2) Instrument 2016/8.
    5 April 2016  FCA published its 2016/17 Business Plan - in which it lists supervising the major UK FICC benchmarks as a planned activity.
    25 April 2016 Bank of England became administrator of the Sterling Overnight Index Average (SONIA) interest rate benchmark.
    29 June 2016 The EU Benchmarks Regulation was published in the OJ and will be in force and in effect 18 months after this date.
    19 July 2016 FSB published a progress report on implementation of its July 2014 recommendations to reform major interest rate benchmarks. It has found that most progress has been made by EURIBOR, LIBOR and TIBOR, but emphasises that reforms have not been completed, particularly with regard to other IBORs and the development of risk-free rates for benchmarks.
    8 August 2016 FCA confirmed that IBA's LIBOR code of conduct is industry guidance for a period of three years from 1 August 2016 or, if earlier, until such time as it is required to be amended in accordance with the EU Benchmarks Regulation.
       

    Further past dates are accessible via the benchmarks newsfeed here.

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  • Subject:
    European Market Infrastructure Regulation (EMIR)
    Status:
    EMIR entered into force 16 August 2012, but some provisions are yet to enter into effect. The first clearing obligations for certain interest rate derivatives apply as of 21 June 2016.The reporting requirement came into effect 12 February 2014, applicable to all types of derivatives contracts. Various margin requirements for uncleared trades apply as of 1 September 2016 for major market participants. Initial margin requirements are to be phased in from 1 September 2016.
    Last updated:
    02/02/2018
    Overview/summary:

    The European Markets Infrastructure Regulation (648/2012) (EMIR) implements the 2009 G20 agreements on over-the-counter (OTC) derivatives clearing in the EU. EMIR applies to all entities that enter into any form of derivative contract, including those not involved in financial services. The Regulation also applies indirectly to non-EU firms trading with EU firms.

    EMIR establishes a clearing obligation for certain derivative (e.g. credit, equity, FX, etc.) trades. The identity of the counterparties and the type of derivative contract being traded determines whether or not the trade must be cleared through a central counterparty (CCP).

    EMIR creates a reporting requirement that means entities that enter into any form of derivative contract (including interest rate, FX, credit, equity, and commodity derivatives) must report that contract to a trade repository.

    EMIR implements new risk mitigation standards, including operational processes and margining, for all OTC derivatives trades which are not centrally cleared (i.e. the class of derivative is not subject to the clearing obligation or the counterparties to the trade do not fall within the scope of the clearing obligation).

    EMIR establishes registration and supervision requirements for central counterparties, as well as for trade repositories.

     

    EMIR reforms:

    On 4 May 2017, the European Commission adopted a legislative proposal for a Regulation amending EMIR. The Council of the EU published a number of compromise proposals regarding the proposed Regulation in November 2017.



    In June 2017, the Commission published a legislative proposal for a Regulation amending EMIR regarding the procedures and authorities involved for the authorisation of CCPs and requirements for the recognition of third-country CCPs. The Commission published a modified legislative proposal in October 2017.

    Publications by date:

     

    4 July 2012 EMIR level 1 published in OJ.
    16 July 2012 EMIR technically in force (but not yet in effect).
    19 December 2012 European Commission adopted nine RTS and ITS.
    Beginning of 2013 Start of the process to determine which OTC derivatives will be subject to the clearing obligation.
    23 February 2013 Six RTS published in OJ.
    15 March 2013 Most EMIR RTS come into force. Notification requirements for non-financial counterparties exceeding clearing threshold begins.
    1 April 2013 FSMA 2000 (OTC derivatives, central counterparties and trade repositories) Regulations 2013 (SI 2013/504) come into force, which partially implement EMIR in the UK.
    November 2013 ESMA published draft RTS on EMIR's application to third-country entities; these were adopted by the Commission as a Regulation in February 2014.
    12 February 2014

    The trade reporting requirements came into effect.

    March 2014 The final EMIR cross-border RTS published in the EU OJ. They set out the circumstances in which the EMIR clearing obligation, risk mitigation techniques and margin requirements will apply to contracts between two non-EU entities.
    April 2014 The European Supervisory Authorities (ESAs) published a consultation paper on draft RTS on the risk management procedures for counterparties in non-centrally cleared OTC derivatives, the criteria concerning intragroup exemptions and the definitions of practical and legal impediments.
    11 April 2014 European Commission published consultation on FX financial instruments.
    21 June 2014 Commission Delegated Regulation (EU) no 285/2014 supplementing EMIR with regard to RTS on direct, substantial and foreseeable effect of contracts with the Union published in OJ.
    19 June 2014 Commission Delegated regulation (EU) no 667/2014 supplementing EMIR with regards to rules of procedure for penalties imposed on trade repositories by ESMA including rules on the right of defence and temporal provisions published in OJ.
    July 2014 ESMA launched first round of consultations to prepare for central clearing of OTC derivative in the EU.
    8 July 2014 European Commission issued response to ESMA’s letter regarding frontloading requirement under EMIR; this letter was published on the ESMA website. Frontloading should be avoided in cases where it could  undermine the overarching objective of the clearing objective to reduce systemic risk.
    23 July 2014 European Commission wrote a letter to ESMA regarding the definition of a financial instrument relating to foreign currency (FX contract).
    29 September 2014 ESMA published a consultation paper on future guidelines clarifying the definition of commodity derivative as financial instruments under the current MiFID 1.
    29 September 2014 ESMA issued a letter to Michel Barnier, Commissioner for Internal Market and Services, outlining the postponement of reports due under Article 85.3 of EMIR together with justification.
    1 October 2014 ESMA launched consultation on draft RTS for the clearing of foreign exchange non-deliverable forwards under EMIR.
    1 October 2014 ESMA issued a final draft RTS for the central clearing of Interest Rate Swaps.
    25 November 2014 ESMA has published a letter it has sent to the EC, announcing that it will delay delivery of the second set of regulatory technical standards on the clearing obligation until the EC has finalised its assessment of the first set.
    December 2014

    European Commission sent a letter to ESMA informing its intention to endorse with amendments the draft RTS on the clearing obligation for interest rate swaps.

    11 December 2014

    European Commission confirmed in a press release the adoption of an implementing act extending the transitional period for capital requirements for EU banking groups’ exposures to CCPs under the European Capital Requirements Regulation by six months.

    January 2015 ESMA published opinion on draft RTS on the clearing obligation on interest rate swaps in response to the European Commission’s notification to adopt (with amendments) these draft RTS
    January 2015 IOSCO published report on risk mitigation standards for non-centrally cleared OTC derivatives.
    February 2015 European Commission published a report that recommends granting pension funds a two-year exemption from central clearing requirements for their OTC derivative transactions.
    February 2015 ESMA issued feedback statement on the central clearing of non-deliverable forwards. ESMA is not proposing a clearing obligation on NDFS based on the feedback received following the consultation on the clearing obligation for NDFs
    March 2015 Basel Committee on Banking and IOSCO released a revision to the implementation schedule for margin requirements for non-centrally cleared derivatives. A delay of 9 months has been agreed.
    March 2015 EMSA published the 12th update to its Q&A on EMIR. This update includes further guidance on the authorisation of CCP services, the clearing obligation and the Regulatory Technical Standards on direct, substantial and foreseeable effect of contracts within the European Union.
    27 April 2015 ESMA published a revised Q&A which focuses on level 2 validation that ESMA expects Trade Repositories to implement by the end of October 2015.
    May 2015 ESMA has recognised ten third-country CCPs established in Australia, Hong King, Japan and Singapore.
    May 2015 ESMA published a CP setting out draft RTS establishing a clearing obligation on further classes of interest rate derivatives that were not included in the first RTS on clearing obligation for interest rate swaps.
    10 June 2015 ESAs CP draft RTS as follow up to April 2014 draft
    July 2015 ISDA published a classification letter that will enable counterparties to notify each other of their status under EMIR.
    6 August 2015 The Commission published the provisional text of the Delegated Regulation it has adopted setting out the RTS for the introduction of a central clearing obligation for OTC interest rate swaps. The clearing obligations will enter into force subject to scrutiny by the European Parliament and Council of the EU and will be phased in over three years to allow additional time for smaller market participants to begin complying.
    August 2015 FMLC published paper expressing concern about draft RTS produced by the ESAs
    21 September 2015 ESMA has updated its list of CCPs that have been authorised to offer services and activities in the Union in accordance with EMIR.
    2 October 2015 ESMA updated Q&A document to include guidance on procedure to be followed by counterparties and trade repositories in order to update counterparty's indentifier in cases where a counterparty obtains LEI or its LEI changes due to a merger/acquisition.
     4 November 2015  ESMA updated its list of CCPs authorised under EMIR.
     5 November 2015 ESMA launched a consultation on draft requirements on indirect clearing arrangements (for OTC derivatives and exchange-traded derivatives) under EMIR and MiFIR.
     9 November 2015  ESMA published additional draft RTS on the central clearing of IRS which it is required to develop under EMIR.
     13 November 2015 ESMA published an update of existing technical standards regarding data reporting requirements under EMIR.
     19 November 2015  ESMA issued statement that it will not exempt the collateralisation of bank guarantees for energy derivatives under EMIR.
     30 November 2015 HM Treasury published consultation outcome re: Recognised Clearing Houses: response to the call for evidence (27 November 2015).
     1 December 2015 Delegated Regulation ((EU) 2015/2205) on RTS on central clearing for interest rate derivatives under Article 5(2) of EMIR (Regulation 648/2012) was published in the Official Journal.
     11 December 2015 ESMA published a consultation on draft technical standards on access to data and aggregation and comparison of data across trade repositories under Article 81 of EMIR. 
     14 December 2015 ESMA launched a consultation on the review of Article 26 of RTS No 153/2013 with respect to MPOR for client accounts.
     21 December 2015 ESMA published responses to its consultation paper on indirect clearing under EMIR and MiFIR.
     18 January 2016 ESRB published a report to the European Commission on the Systemic Risk Implications of CCP Interoperability Arrangements.
     26 January 2016 ESMA established two Memoranda of Understanding (MoUs) with the Mexican Comisión Nacional Bancaria y de Valores (CNBV) and the South African Financial Servcies Board (FSB).
     2 February 2016 ESMA published ESMA/2016/184: Opinions on exemptions from the clearing obligation for pension schemes. (Applicable to 16 UK pension schemes.)
    4 February 2016 

    ESMA published ESMA/2016/242: Q&A on practical questions regarding the European Markets Infrastructure Regulation (EMIR).

    Further to its earlier consultation (14 December 2015 MPOR), ESMA published responses.

    5 February 2016 ESMA published ESMA/2016/234: Annual Report on Supervision and 2016 Work Plan.
    10 February 2016 

    European Commission and the US Commodity Futures Trading Commission (CFTC) issued a press release in which they announced  they have agreed a  common approach on the equivalence of Central Counterparty (CCP) regimes.

    ESMA published responses to its earlier consultation on access, aggregation and comparison of trade repository data.

    16 February 2016 

    ESMA published three tables and an updated Q&A:

    ESMA/2016/274: Guidelines and Recommendations for establishing consistent, efficient and effective assessments of interoperability arrangements (ESMA/2013/322);
    ESMA/2016/273: Guidelines and Recommendations regarding written agreements between members of CCP colleges (ESMA/2013/661);
    ESMA/2016/275: Guidelines on the implementation of the CPSS-IOSCO Principles for Financial Market Infrastructures in respect of Central Counterparties (ESMA/2014/1133);

    ESMA/2016/293: Q&A XVI on EMIR implementation

    18 February 2016 ESMA published a list of UK pension scheme arrangements exempted from the clearing obligation under EMIR.
    19 February 2016  ESMA published an updated version of its Public Register for the Clearing Obligation.
    1 March 2016

    European Commission adopted Commission Delegated Regulation on central clearing for credit default derivatives.

    ESMA issued ESMA/2016/328: Possible systemic risk and cost implications of interoperability arrangements.

    (UK) FCA published a list of pension scheme arrangements exempted from the clearing obligation.

    8 March 2016 

    Joint Committee of the European Supervisory Authorities (ESAs) have published draft RTS:

    ESAs/2016/23: Final Draft Regulatory Technical Standards on risk-mitigation techniques for OTC-derivative contracts not cleared by a CCP under Article 11(15) of Regulation (EU) No 648/2012

    14 March 2016 Council of the EU stated that it is giving a one-month extension to the period for raising objections to regulation supplementing regulation 648/2012 on OTC derivatives.
    15 March 2016

    European Commission adopted an Implementing Decision:

    Commission Implementing Decision (EU) 2016/377 (adoption of an equivalence decision for the CCP regime of CFTC ).

    16 March 2016 Commission Implementing Decision (EU) 2016/377 of 15 March 2016 on the equivalence of the regulatory framework of the USA for central counterparties that are authorised and supervised by CFTC to the requirements of Regulation (EU) No 648/2012 of the European Parliament and of the Council - published in the Official Journal of the EU.
    21 March 2016 ESMA published Practical guidance for the recognition of third-country CCPs.
    22 March 2016 ESMA and South Korean Financial Services Commission and the Financial Supervisory Service establish an MoU.
    4 April 2016 ESMA published an updated EMIR Q&A.
    5 April 2016

    ESMA published Review of Article 26 of RTS No 153/2013 with respect to MPOR for client accounts.

    ESMA published draft technical standards on access to data and aggregation and comparison of data across TR under Article 81 of EMIR.

    13 April 2016

    ESMA published Opinions regarding the exemption from clearing obligations for pension schemes:

    ESMA/2016/592 to 594: Opinions - Exemption from the clearing obligation for pension schemes

    14 April 2016 ESMA issued a press release announcing the first EU-wide stress tests concerning CCPs.
    15 April 2016 ISDA published an updated classification letter that will enable counterparties to notify each other of their status for clearing and other regulatory requirements under EMIR. It covers the clearing obligation for certain interest rate derivatives classes denominated in EEA currencies and certain CDS index classes.
    19 April 2016

    ESMA added credit derivatives, notably for iTraxx main and iTraxx crossover contracts, to the clearing obligation on the updated register.

     

    Commission Delegated Regulation 2016/592 of 1 March 2016 supplementing Regulation (EU) No 648/2012 of the European Parliament and of the Council with regard to regulatory technical standards on the clearing obligation has now been published in the Official Journal.

    21 April 2016 European Commission adopted an amending Delegated Regulation with regard to the time horizons for the liquidation period to be considered for the different classes of financial instruments.
    17 May 2016 European Commission published responses following from the 'Call for Evidence' regarding the EU's FS regulatory framework.
    26 May 2016 ESMA published final draft technical standards re: MiFIR/EMIR. The report included the standards on indirect clearing under MiFIR and EMIR which clarifies provisions of indirect clearing arrangements for OTC and exchange-traded derivatives and help to ensure consistency and that an appropriate level of protection for indirect clients exists. The standards have been submitted to the Commission.
    27 May 2016 Commission Delegated Regulation amending Delegated Regulation (EU) No 153/2013 as regards the time horizons for the liquidation period to be considered for the different classes of financial instruments ((EU) 2016/822) has been published in the Official Journal.
    2 June 2016 ESMA published a discussion paper regarding distributed ledger technology applied to securities markets (and the interaction with certain EU legislation, including EMIR).
    3 June 2016 European Commission adopted a Council proposal on the position to be taken by the EU in EEA Joint Committee concerning the incorporation of the Regulations on the ESAs and on and certain related Regulations and Directives (ESRB Regulation, AIFMD and related delegated acts, the Short Selling Regulation and related delegated acts, EMIR and CRA Regulation and related delegated acts).
    6 June 2016

    ESMA published the text of an MoU agreed with the US Commodities Futures Trading Commission.

    ESMA published an updated Q&A re: the clearing obligation. 

    8 June 2016 European Commission Implementing Regulation regarding extension of the transitional periods related to own funds requirements for exposures to CCPs published in OJ.
    10 June 2016

    European Commission Delegated Regulation adopted:

    Delegated Regulation on RTS on the clearing obligation under EMIR (with accompanying annex).

    Further past dates are accessible via the news feed on the RegZone EMIR page here.

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  • Subject:
    Short-Selling
    Status:
    The Short Selling Regulation (SSR) (263/2012) in force and effective (since 1 November 2012).
    Last updated:
    29/11/2016
    Overview/summary:

    The Short Selling Regulation (SSR) requires that firms notify the regulator – or disclose to the market – if they hold short positions over a certain threshold. Naked short-selling of shares is effectively banned, as is the sale of ‘naked’ Credit Default Swaps related to sovereign debt (i.e. where these are held other than the purposes of hedging). Finally, the Regulations harmonise the powers available to national regulators to restrict short selling in certain circumstances, and also provide ESMA with controversial emergency powers allowing them to act in Member States directly.

    This reform tracker item is no longer updated.

    Publications by date:

     

    14 March 2012 Short selling regulation published in OJ.
    5 July 2012 Commission Delegated  Regulation (EU) No 918/2012 amending the Short Selling Regulation.
    1 November 2012 The regulation directly applicable in the UK.
    1 November 2012 ECJ dismisses UK case that Article 28 SSR (ESMA direct intervention powers) are ultra vires and illegal.
    30 January 2013 ESMA published the third Q&A on the implementation of the Short Selling Regulation
    3 June 2013  ESMA published its final technical advice on the Short Selling Regulation.
    22 January 2014  (UK) The UK's legal challenge against ESMA's powers under the Short Selling Regulation (SSR) were dismissed.
    17 October 2014 European Commission adopted a Delegated Regulation correcting Article 13(3) of Delegated Regulation EU/918/2012 which supplements the Short Selling Regulation (EU 236/2012) concerning the notification of significant net short positions in sovereign debt.
    27 October 2014  ESMA issued an opinion regarding the emergency measures introduced by the Italian Market regulator (CONSOB) under the Short Selling Regulation (SSR). The SSR requires ESMA (within 24 hours) to issue an opinion on whether it considers the measure, or proposed measure, necessary to address the exceptional circumstances.
    23 January 2015  Commission Delegated Regulation (EU) No 2015/97 of 17 October 2014 correcting Delegated Regulation (EU) No 918/2012 as regards the notification of significant net short positions in sovereign debt was published in the Official Journal.
     29 June 2015 EBA issued an official opinion agreeing to a seven-day emergency short selling prohibition proposed by the Hellenic Capital Market Commission (HMCM) under the Short Selling Regulation.
    July to December 2015  Over the course of these months, extensions were approved regarding the emergency short selling prohibition proposed by HMCM. 
    5 January 2016  ESMA published the results of a review of five national competent authorities (NCAs) under the Short Selling Regulation (SSR).
    12 January 2016  ESMA  issued a negative opinion on a proposed extension of the emergency short selling prohibition, regarding Attica Bank S.A. (ISIN GRS001003011), proposed by HCMC (which expired at 24:00:00 (CET) on 11 January 2016), stating that the proposed extension is neither appropriate nor proportionate.
    1 February 2016  ESMA published ESMA/2016/200: ESMA Registers - MiFID webservice - Procedure.
     3 June 2016

    European Commission adopted a Council proposal on the position to be taken by the EU in EEA Joint Committee concerning the incorporation of the Regulations on the ESAs and on and certain related Regulations and Directives (ESRB Regulation, AIFMD and related delegated acts, the Short Selling Regulation and related delegated acts, EMIR and CRA Regulation and related delegated acts).

     

    Further past dates are accessible via the news feed on the short selling page.
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  • Subject:
    Transparency Directive Amending Directive
    Status:
    Transparency Directive (2004/109/EC) in force and in effect. Transparency Directive Amending Directive 2013/50/EU (TDAD) in force; 26 November 2015 was the implementation deadline for Member States.
    Last updated:
    29/11/2016
    Overview/summary:

    The Transparency Directive (2004/109/EC) (TD) harmonised EU rules on periodic financial reporting and on disclosure of shareholdings. It was amended by Directive 2010/73/EU to change the provisions on exemptions, debt issuer information requirements, and language.

     

    The Transparency Directive (2004/109/EC) was subsequently amended by the Transparency Directive Amending Directive (TDAD) 2013/50/EU.

     

    The changes affect companies with securities admitted to trading on regulated markets in the EEA. Key changes to note include the requirement to disclose major holdings of all financial instruments that could be used to acquire economic interest in listed companies; extractive and forestry logging companies (where incorporated) will be required to disclose payments to governments on a country by country and project specific basis; and the requirement for companies to produce interim management statements or quarterly reports will be abolished (subject to Member State discretion). 

     

    This reform tracker item is no longer updated.

    Publications by date:

     

    31 December 2004 Transparency Directive published in OJ.
    20 January 2007 Deadline for implementation of TD.
    11 December 2010 Directive 2010/73/EU amending TD published in OJ.
    1 July 2012 Deadline for implementation of amending Directive.
    26 November 2013 Transparency Directive (2004/109/EC) amended by new Directive (2013/50/EU).
    19 December 2014 ESMA publishes a consultation paper on draft technical regulatory standards for an European Electronic Access Point (EEAP) as required by the amended Transparency Directive.
    January 2015 (UK) FCA publish PS15/1 on early implementation of the Directive.
    1 January 2015 The new country by country reporting requirements will apply in respect of financial years beginning on or after this date.
    March 2015 (UK) HM Treasury and FCA publish CP15/11 a joint consultation setting out proposed amendments to FSMA and details of the FCA’s proposed amendments to the Disclosure Rules and Transparency Rules (DTRs).
    March 2015 ESMA’s consultation regarding the EEAP closes.
    13 May 2015 European Commission’s delegated regulation setting out regulatory technical standards on major holdings under the amended Transparency Directive published in the OJ.
    June 2015  European Commission published text of the Delegated Regulations concerning TDAD and equivalence in accounting standards.
    September 2015 ESMA launched consultation on Regulatory technical standards on the European Single Electronic Format (ESEF).
    29 September 2015 ESMA published Draft regulatory technical standards on European Electronic Access Point (EEAP).
    5 October 2015  ESMA published guidelines on alternative performance measures under TDAD.
    12 October 2015  (UK) The Transparency Regulations 2015/1755 make changes to FSMA 2000 as part of the process of implementing TDAD. 
    23 October 2015 ESMA published Q&A, an indicative list of financial instruments and new standard forms for disclosure of Home Member State and notification of major holdings ahead of TDAD implementation deadline.
     6 November 2015 (UK) FCA/HMT published policy statement PS15/26: Implementation of the Transparency Directive Amending Directive (2013/50/EU) and other Disclosure Rule and Transparency Rule changes.
    4 December 2015  (UK) FCA published Quarterly consultation  (CP15/42) regarding (among other things) changes resulting from the implementation of the Transparency Directive Amending Directive.
    29 January 2016 In force and in effect.

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  • Subject:
    Securities Financing Transactions Regulation
    Status:
    Securities Financing Transactions Regulation was published in the Official Journal on 4 January 2016 and entered into force on 12 January 2016 (with the exception of Art. 33 provisions).
    Last updated:
    19/12/2016
    Overview/summary:

    The Securities Financing Transactions (SFT) Regulation is part of the European Union’s measures to address shadow banking and is in line with the Financial Stability Board’s recommendations. The European Commission’s Communication on Shadow Banking identified SFTs as a source of systemic risk for the stability of the financial system and therefore would need to be better monitored. The proposal on the SFT Regulation was adopted alongside the proposal for the structural reform of the EU banking sector that seeks to address interrelated issues.

     

    Securities financing transactions allow market participants to use their assets to secure financing for their activities. This involves the temporary exchange of assets as a guarantee for a funding transaction.

     

    The SFT Regulation reforms apply to all counterparties in SFT markets, UCITS management companies and UCITS investment companies, alternative investment fund managers (AIFMs), and counterparties engaging in rehypothecation.

     

    There are three proposed measures to improve the transparency of SFTs. All SFTs—except those concluded with central banks—will be reported to trade repositories. Information on the use of SFTs by investment funds will be disclosed to investors in the regular reports and pre-investment documents of funds. Minimum transparency conditions will need to be met on the reuse of collateral, such as disclosure of the risks and the need to grant prior consent.

     

    This reform tracker item is no longer updated.

    Publications by date:
     

    29 January 2014

     

    The European Commission published a legislative proposal for the SFT Regulation

     

    25 February 2014

     

    Committee referral announced in Parliament, 1st reading/single reading

     

    20 October 2014

     

    Committee referral announced in Parliament, 1st reading/single reading

     

    24 March 2015

     

    Vote in committee, 1st reading/single reading

     

    9 April 2015

     

    Committee report tabled for plenary session, 1st reading/single reading

     16 November 2015 Council of the EU adopted Securities Financing Transactions Regulation; the Regulation will enter into force 20 days after it is published in the OJ. 
     4 January 2016 The Regulation was published in the OJ.
     12 January 2016 The Regulation entered into force on this day.

    20 January 2016

    UK: FMLC published the text of a letter it has sent to European Commission's DG in which it welcomes changes made to Article 15 which have been introduced in order to reflect the nature of title transfer collateral arrangements.
    11 March 2016  ESMA published a discussion paper on the SFTR - setting out proposals for implementing the reporting framework, including tables of the fields with the proposed data to be reported, and the registration requirements for those trade repositories that want to accept reports on security financing transactions.
    3 May 2016 ESMA published responses to its March 2016 discussion paper on the Regulation.
    19 May 2016 (UK) FCA launched  CP16/14 regarding UCITS V Level 2 Regulation, SFTR and consequential changes to the Handbook.
    2 June 2016 ESMA published a discussion paper on the possible use of distributed ledger technology in securities markets and its potential risks and benefits. ESMA also considered how legislation (EMIR, SFTR, CSDR) would fit in relation to the technology.
    8 July 2016 (UK) The Financial Services and Markets Act 2000 (Transparency of Securities Financing Transactions and of Reuse) Regulations 2016/715 implement in part the SFT Regulation and amend FSMA, the Financial Services and Markets Act 2000 (Qualifying EU Provisions) Order 2013/419 and other secondary legislation to allow certain requirements imposed by or under the SFT Regulation to be enforced. These Regulations also confer power on FCA to enforce those requirements in respect of counterparties not regulated under FSMA and to provide powers to FCA and BoE supplementing those in FSMA where necessary (Date in force: 13 July 2016).
    30 September 2016 ESMA launched a consultation paper on draft technical standards under the Securities Financing Transactions Regulation. In addition to the SFTR, ESMA proposes certain amendments to the existing standards implementing EMIR.
    5 October 2016 The ESRB published its Opinion sent to ESMA regarding securities financing transactions and leverage under Art. 29 SFTR.
    7 November 2016 ESMA notes errata in earlier consultation paper published in September 2016 on draft technical standards.

    Further past dates are accessible via the RegZone SFTR newsfeed here.

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  • Subject:
    Central Securities Depositories (CSDs)
    Status:
    The Central Securities Depositories Regulation (CSDR) (909/2014) has been adopted and has been in force since 17 September 2014. It will be fully effective from 2025. For details on the progress of various provisions under CSDR see the Commission's FAQs (link in the Summary below). In June 2016, the Council's legislative package re: MiFID II delay (including a Regulation amending MiFIR, MAR, and CSDR) was published in the OJ.
    Last updated:
    07/08/2019
    Overview/summary:

    Regulation No 909/2014 on improving securities settlement in the EU and on central securities depositories (CSDs), known as the CSD Regulation (CSDR), sets out a harmonised framework for the regulation of CSDs, the institutions responsible for securities settlement.

     

    The CSDR aims to provide various organisational, prudential and conduct of business standards for CSDs. CSDs should benefit from a new cross-EU passporting system. The CSDR should also reduce the time taken for securities settlement to a maximum of two days after the trading day; and require penalties and buy-in provisions to be in place for cases of settlement failure.

     

    For details on the progress of the various provisions under CSDR see the Commission's FAQs. In February 2016, the European Parliament's ECON Committee published a draft report regarding MiFID II delay and MAR and CSDR (click here to read). In June 2016 the legislative package set to give effect to MiFID II delay (and amending key dates in MiFIR, MAR, and CSDR) was published in the OJ.

    Article 3(1) of the Regulation will apply from 1 January 2023 to transferable securities issued after that date, and from 1 January 2025 to all transferable securities.

    Publications by date:

    7 March 2012

    CSD proposal published.

    13 February 2013

    European Parliament adopts report with amendments to the CSD proposal

    21 June 2013

    The Council of the EU Presidency publishes a progress report on the proposed CSD Regulation.

    18 July 2013

    House of Commons European Scrutiny Committee publishes its ninth report of the 2013-14 session, which includes consideration of the proposed CSD Regulation. It notes that there are three principal outstanding issues in Council negotiations.

    18 December 2013

    The Council reaches preliminary political agreement with the European Parliament.

    26 February 2014

    The Council publishes the final compromise text of the Regulation, which COREPER has approved.

    15 April 2014

    CSDR was adopted by the European Parliament

    23 July 2014

    The Council of the EU Presidency publishes a progress report on the proposed CSD Regulation.

    28 August 2014

    CSD Regulation published in the Official Journal (in substantially same form as text adopted by Council on 23 July 2014).

    17 September 2014

    CSDR came into force subject to a number of transitional provisions. CSDR requires ESMA and EBA to submit draft RTS by 18 June 2015.

    22 December 2014

    ESMA publishes three CP's on proposed technical standards, technical advice and guidelines implementing the CSD.

    1 January 2015

    Article 5(2) of CSDR (on intended settlement dates for transactions in transferable securities executed on trading venues) begins to apply except when a trading venue has access to a CSD.

    27 February 2015

    EBA released consultation on prudential requirements for central securities depositories under CSDR (articles 47, 54, 59)

    2 March 2015

    EBA publishes a consultation on standards developed within CSDR.

    18 June 2015

    ESMA has asked the European Commission to delay its draft technical standards (TS) for the CSDR until September 2015. The initial delivery date of the CSDR TS was due 18 June 2015.

    22 June 2015

    ESMA announced the TARGET2-Securities settlement platform started live as planned.

    30 June 2015

    ESMA consultation on RTS on the operation of the Buy-in Process under the CSDR.

    6 August 2015

    ESMA published the responses it has received to its consultation paper of 30 June 2015.

    28 September 2015

    ESMA sent its final technical standardsregarding the implementation of CSDR to the European Commission for endorsement. This Final Report includes the feedback from the second consultation (conducted from 18 December 2014 to 19 February 2015) and the proposed changes made by ESMA in key areas.

    10 December 2015

    CSD Steering Group discussed the outcome of the technical assessment of solutions for the delayed migration of Euroclear ESES CSDs to T2S. Agreement was reached on a new migration plan.

    1 February 2016

    ESMA published ESMA/2016/174: Draft regulatory technical standards on settlement discipline under the CSDR.

    17 February 2016

    ECON published a draft report on MiFID II delays as well as a draft report on MiFIR, MAR, and CSDR.

    31 May 2016

    ESMA launched a consultation on CSDR guidelines on participant default rules and procedures.

    10 June 2016

    Council of the EU published a proposed legislative package to postpone MiFID II (including a Regulation that amends key dates inMiFIR, MAR, and CSDR).

    30 June 2016

    The legislative package giving effect to theMiFID II delay was published in the OJ.

    11 November 2016

    European Commission adopted a package of 6 legislative acts to implement specific provisions of the Regulation.

    25 May 2018

    European Commission published the text of, and related annexes to, a Delegated Regulation supplementing the Regulation on improving securities settlement and regulating central securities depositories (CSDs) (Regulation 909/2014) (CSDR) with regard to regulatory technical standards (RTS) on settlement discipline (C(2018) 3097 final).

    20 December

    ESMA consults on settlement fails reporting and standardised procedures and messaging protocols guidelines under CSDR.

    28 February 2019

    Decision 18/2019 of the EEA Joint Committee concerning the incorporation of the Central Securities Depositories Regulation (909/2014) (CSDR) into the EEA Agreement was published in the Official Journal of the European Union.

    4 April 2019

    Commission Implementing Decisions (EU) 2019/544 and (EU) 2019/545 on the temporary equivalence of the UK's regulatory framework for central counterparties and central securities depositories, in the event of a no-deal Brexit, which amend Commission Implementing Decisions (EU) 2018/2031 and (EU) 2018/2030, respectively, have been published in the Official Journal of the EU.

    20 June 2019

    Decision (EU) 2019/1006 (ECB/2019/15) amending Decision ECB/2011/20 establishing detailed rules and procedures for implementing the eligibility criteria for central securities depositories to access TARGET2-Securities was published in the Official Journal of the EU.

    Guideline (EU) 2019/1007 (ECB/2019/16) amending Guideline ECB.2012/.13 on TARGET2-Securities has also been published in the Official Journal, which is addressed to all central banks of the Eurosystem and becomes effective on the notification from the ECB.

    4 July 2019

    The European Central Securities Depositories Association (ECSDA) published an updated version (v3.0) of its draft settlement fail penalties framework.

    The framework aims to create a harmonised set of rules for the creation and operation of settlement discipline cash penalties mechanisms. It will apply to all central securities depositaries (CSDs) subject to the Regulation on improving securities settlement and regulating CSDs (Regulation 909/2014) (CSDR) or equivalent legislation.

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