Official Journal of the European Union
MiFIR - Notice of information on the postponement of open access provisions published in Official Journal - 3 July 2020
A notice of information regarding the postponement of the entry into force and application of the open access provisions for trading venues and central counterparties (CCPs) offering trading and clearing of exchange-traded derivatives (ETDs) under Articles 35 and 36 of the Markets in Financial Instruments Regulation (600/2014/EU) (MiFIR) has been published in the Official Journal of the European Union.
The notice extends until 3 July 2021 the transitional period under Article 54(2) of MiFIR exempting trading venues and CCPs from the open access provisions for ETDs under Articles 35 and 36 of MiFIR. The transitional period was originally due to expire on 3 July 2020, but has been extended because of the increased operational risks for trading venues and CCPs in light of COVID-19.
The extension only applies to those trading venues or CCPs that made a request to their competent authorities to benefit from the transitional arrangements for ETDs. See the item on the corresponding FCA statement included below.
Official Journal: Notice of information on the postponement of the application of open access provisions for trading venues and CCPs in relation to ETDs under MiFIR
European Securities and Markets Authority
MiFIR - ESMA updates Q&As on data reporting - 8 July 2020
The European Securities and Markets Authority (ESMA) has updated its Q&As on data reporting under MiFIR to include a new Q&A on reporting requirements where an investment firm executes a reportable transaction through an execution algorithm provided by another investment firm.
ESMA updated Q&As on data reporting under MiFIR
CSDR - ESMA updates Q&As on implementation - 8 July 2020
ESMA has updated its Q&As on the implementation of the Central Securities Depositories Regulation (909/2014/EU) (CSDR). ESMA has updated Part III on settlement discipline to include a new Q&A on buy-in timeframes and the concept of “business days” in relation to the implementation of the settlement discipline regime.
ESMA updated Q&As on the implementation of the CSDR
Press release
EMIR - ESMA updates Q&As on implementation - 8 July 2020
ESMA has updated its Q&As on the implementation of the European Market Infrastructure Regulation (648/2012/EU) (EMIR) to include an updated Q&A on the frequency of reports required under Article 9.
ESMA updated Q&As on the implementation of EMIR
SFTR - ESMA consults on draft Guidelines on the calculation of SFT positions by TRs - 9 July 2020
ESMA has published for consultation draft Guidelines on the calculation of securities financing transaction (SFT) positions by trade repositories (TRs) under the Securities Financing Transactions Regulation (EU) 2015/2365 (SFTR).
The Guidelines aim to ensure the consistency of position calculations across TRs, particularly in relation to the time of calculations, the scope of the data used in calculations, data preparation, record keeping and calculation methodologies. The Guidelines cover two main types of aggregation: (i) named positions between counterparties; and (ii) sectorial positions for the purposes of Financial Stability Board (FSB) reporting requirements.
The consultation period closes on 15 September 2020. ESMA intends to finalise and publish a final report on the Guidelines by Q1 2021.
ESMA consultation on draft Guidelines on the calculation of SFT positions by TRs under the SFTR
Press release
MMF Regulation - ESMA publishes statement on external support in light of COVID-19 measures - 9 July 2020
ESMA has published a statement on the provision of external support under Article 35 of the Money Market Funds Regulation (EU) 2017/1131 (MMF Regulation) in light of actions taken by financial markets authorities to mitigate the impact of COVID-19. Under Article 35, MMFs are not allowed to receive external support, defined as “direct or indirect support offered to an MMF by a third party, including a sponsor of the MMF, that is intended for or in effect would result in guaranteeing the liquidity of the MMF or stabilising the NAV per unit or share of the MMF”.
ESMA explains that the market liquidity provided by certain measures taken by central banks and financial market regulators may have indirectly benefited MMFs through the intermediation of credit institutions. ESMA clarifies that MMFs may enter into transactions with third parties, including affiliated or related parties, provided the requirements of Article 35 of the MMF Regulation are met.
ESMA statement on the provision of external support under Article 35 of MMF Regulation in light of COVID-19
Press release
Association for Financial Markets in Europe
CSDR settlement discipline penalties - AFME publishes market practice guidance on bilateral claims - 6 July 2020
The Association for Financial Markets in Europe (AFME) has published market practice guidance on how trading counterparties should handle bilateral claims relating to penalties applied under the CSDR on failed settlement instructions.
AFME market practice guidance on bilateral claims relating to settlement discipline penalties under the CSDR
European Association of CCP Clearing Houses
CSDR Settlement Discipline Framework - updated version published by EACH - July 2020
The European Association of CCP Clearing Houses (EACH) has published an updated version of its CSDR Settlement Discipline Framework, applicable to all central counterparties (CCPs) subject to the CSDR. The framework aims to provide the ESMA, other relevant authorities and market participants with details of how EACH will implement the provisions on settlement discipline under the CSDR. EACH published its CSDR Settlement Discipline Framework in February 2020.
The updated version contains few substantive amendments. Among other things, new sub-sections have been included in section 4 on cash penalties and section 5, which relates to the buy-in process.
Updated EACH CSDR Settlement Discipline Framework
Financial Conduct Authority
MiFIR - FCA updates statement on the application of the open access regime - 6 July 2020
The FCA has updated its statement on the application of the open access regime for trading venues and CCPs offering trading and clearing of ETDs under Articles 35 and 36 of MiFIR to confirm that the EU has postponed the entry into force of the open access provisions until 4 July 2021 in light of COVID-19.
A notice of information, published in the Official Journal of the European Union and referred to above, confirms that the transitional period under Article 54(2) of MiFIR, which exempts trading venues and CCPs from the open access provisions for ETDs under Articles 35 and 36 of MiFIR, will be extended 3 July 2021.
Updated FCA statement on the application of the open access regime for trading venues and CCPs under MiFIR
