European Commission
Equivalence of China and Israel under EMIR - European Commission adopts two Implementing Decisions
The European Commission (the Commission) has adopted two Commission Implementing Decisions on the equivalence of the regulatory framework for central counterparties (CCPs) in China and Israel to the requirements of the European Market Infrastructure Regulation (648/2012/EU) (EMIR).
The Commission Implementing Decisions allow CCPs in these jurisdictions to apply for recognition by the European Securities and Markets Authority. Once recognised, they will be able to provide central clearing services in the EU to EU clearing members and trading venues.
The Commission Implementing Decisions will enter into force 20 days after their publication in the Official Journal of the European Union.
Commission Implementing Decision (EU) …/… of XXX on the equivalence of the regulatory framework of the People’s Republic of China for central counterparties that are authorised to clear OTC derivatives in the interbank market and supervised by the People’s Bank of China to their requirements of Regulation (EU) No 648/2012 of the European Parliament and of the Council (C(2022) 4301 final)
Commission Implementing Decision (EU) …/… of 22.6.2022 on the equivalence of the regulatory framework for central counterparties in Israel to the requirements of Regulation (EU) No 648/2012 of the European Parliament and of the Council (C(2022) 4306 final)
Press release
European Securities and Markets Authority
Market soundings - ESMA updates MAR Q&As - 23 June 2022
The European Securities and Markets Authority (ESMA) has updated its Q&As on the Market Abuse Regulation (596/2014/EU) (MAR) to clarify the scope of Article 11(1a) MAR, which concerns the circumstances under which an offer of securities addressed solely to qualified investors for the purposes of negotiating the contractual terms and conditions of their participation in an issuance of bonds will not constitute a market sounding. The Q&As confirm that the scope of Article 11(1a) MAR is narrow, and does not encompass the offering of bonds to potential investors contacted after the terms and conditions have been determined.
Updated Q&As on the Market Abuse Regulation (MAR) (ESMA70-145-111)
Financial Conduct Authority
Accessing and using wholesale data - FCA launches trade data review - 22 June 2022
The FCA has launched its trade data review (the Review) following its January 2022 Feedback Statement (FS22/1), which sets out its findings on the use of data in wholesale markets.
The FCA notes that, as set out in FS22/1, it has concerns that ownership of trade data by trading venues (which include UK regulated markets, multilateral trading facilities and organised trading facilities) may give market power, resulting in:
- increases in data charges that may be increasing costs to end investors above those the FCA would expect in a competitive market;
- a level and structure of data charges that may be affecting asset managers’ investment decisions and limiting competition between asset managers; and
- a level and structure of data charges that may be limiting the efficiency of trading activity in a way that affects price formation.
The FCA is also concerned that current regulatory provisions for free delayed data may not be effective. The Review is looking at these areas, and if the FCA finds evidence that competition is not working well for users of trade data it will assess the harm this is causing and propose remedies.
To this end, the FCA will issue a questionnaire to users of trade data in July 2022, and it aims to publish the Review’s findings and any next steps in January 2023. The FCA will publish more information on its planned work on competition in the markets for benchmarks and credit rating data later this year.
Updated webpage
