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MiFID 2 Inducements Q&A updated

Article 13 Inducements of the MiFID II Delegated Directive has created a wide diversity of reactions from puzzled head-scratching to fearful wailing from the equity analyst community. Readers will be aware that research must now be classified as paid-for and justified Research or essentially advertising that may be received for free. The Research to Marketing […]

All change for EU investment firm supervision

The European Commission has published a proposal for significant changes to the Prudential Regime for EU investment firms, amending the framework set out in the capital requirements directive and regulation (CRD IV/CRR) and in MiFID2/MiFIR. The proposal will impact the Prudential Requirements on individual firms and the categories to which they belong. A full review […]

FFX Margin- the far off sound of a fat lady singing

The will they-won’t they soap opera of European FFX margin regulation is likely drawing to a close. As promised in their 24 November announcement, the three European Supervisory Authorities (ESMA, EBA and EIOPA) published a draft amendment to the EMIR Margin RTS. The amendment does clarify matters by excising the announcement’s “most likely”, confirming that […]

EU FFX – fiasco saga

On 24 November the European Supervisory Authorities (ESAs) released their long (in context) awaited forbearance announcement with respect to the margining or not of forward foreign exchange. A short summary follows: Everyone else agreed to this but didn’t follow on Our hands are tied and we will need to change EU law Likely changes will […]

MiFID II Update: Trading Obligation to Commence ‘Early’ in 2018

Introduction On 28 September 2017, the European Securities and Markets Authority (“ESMA”) submitted its final report containing draft Regulatory Technical Standards (“RTS”) on the trading obligation for derivatives under MiFIR with respect to interest rate swaps (“IRS”) and credit default swaps (“CDS”) to the European Commission (“EC”).  The EC has three months to decide whether […]

ESMA Consults on Trading Obligation Under MiFIR

On 19 June 2017, ESMA published a consultation paper on the trading obligation for derivatives, as detailed in Articles 28 and 32 of MiFIR.[1]  The closing date for responses is 31 July 2017. By way of reminder, derivatives that are subject to the trading obligation under MiFIR may only be traded on: A Regulated Market; […]

EP signals approval of MiFID 2 delay

The European Parliament’s Committee on Economic and Monetary Affairs (ECON) has published two draft reports on the Commission’s proposals to postpone the application date of MiFID II, MiFIR, MAR and the CSDR. Both drafts state that the Parliament intends to adopt the proposals at first reading. The reports are accompanied by an explanatory statement by […]

MiFID II cross-selling final report

ESMA has published a final report containing guidelines on cross-selling practices under MiFID II. The final report follows the 22 December 2014 consultation paper (JC/CP.2014/05) issued by the Joint Committee of the European Supervisory Authorities. Article 24(11) MiFID II requires ESMA, in cooperation with the EBA and EIOPA, to create guidelines for the supervision and […]

Indirect Clearing: In Search of One Template To Rule Them All

Background EMIR introduced a clearing obligation in relation to “OTC derivative contracts” of any class that has been declared subject to a clearing obligation and which are transacted between particular types of counterparty[1].  MiFIR[2] extended the scope of the clearing obligation to all derivative transactions concluded on a regulated market.  There are three basic ways […]

MiFID II complex debt defined quite simply

ESMA has issued a Final Report containing guidelines on which debt instruments and structured deposits will be considered “non-complex” under MiFID II. Article 25(4) allows firms to transact non-complex on behalf of customers without applying the Article 25(3) appropriateness test. The report follows the 24 March 2015 consultation paper, includes an analysis of its results […]

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