MiFID II – updated Q&As on MiFID II and MiFIR transparency topics and obligations on disclosure of information to clients in the context of Brexit
ESMA updated its Q&As on 4 January on MiFID II and MiFIR transparency topics.
The updated Q&As address:
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Publication of request for market data (RFMD) transactions;
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Default transparency regime for equity instruments (amendment to an existing Q&A); and,
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Default LIS and SSTI thresholds for bonds
Read: The updated Q&As
Read: The associated press release
ESMA issued a statement on 19 December reminding firms of their MiFID obligations on disclosure of information to clients in the context of the United Kingdom withdrawing from the European Union.
The statement emphasised that the following information should be provided as soon as possible, once available, and should cover at least the following areas:
1.Impact of UK departure:
2.Actions the firm is taking:
3.Implications of any corporate restructuring:
4.Impact on contractual rights
Read: The statement
Read: The associated press release
EMIR – statement in recognition applications for a no-deal Brexit scenario
ESMA issued a public statement on 19 December confirming that it is ready to review UK CCPs’ recognition applications for a no-deal Brexit scenario:
Read: The statement
Read: The associated press release
Other – accepted market practice under the Market Abuse Regulation (“MAR”), advice on Initial Coin Offerings and Crypto-Assets and further restrictions on CFDs
ESMA issued a report on 18 December to the European Commission on the application of accepted market practices under the Market Abuse Regulation.
The includes ESMA’s views on the application of accepted market practices together with recommendations to National Competent Authorities
Read: The report
Read: The associated press release
ESMA published its advice on 9 January: Initial Coin Offerings and Crypto-Assets.
The advice identified a number of concerns in the current financial regulatory framework regarding crypto-assets. These gaps and issues fall into two categories:
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For crypto-assets that qualify as financial instruments under MiFID, there are areas that require potential interpretation or re-consideration of specific requirements to allow for an effective application of existing regulations; and
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Where these assets do not qualify as financial instruments, the absence of applicable financial rules leaves investors exposed to substantial risks.
At a minimum, ESMA believes that Anti Money Laundering (AML) requirements should apply to all crypto-assets and activities involving crypto-assets. There should also be appropriate risk disclosure in place, so that consumers can be made aware of the potential risks prior to committing funds to crypto-assets.
Read: The advice
Read: The associated press release
ESMA confirmed on 19 December that it would renew restrictions on selling CFDs to retail clients for a further three months from 1 February.
Read: The press release
EMIR – ESMA updates list of derivative subject to clearing
ESMA updated its public register of derivatives on 6 December subject to the clearing obligation.
Read: The register
MIFID II – consolidated lists of implementing and delegated acts and regulatory technical standard
The European Commission issued updated tables on 13 December listing MiFID II’s implementing and delegated acts, and its regulatory technical standards. The tables are available here:
Read: Implementing and delegated acts
Read: Regulatory Technical Standards
Other – ESMA focusses on “regtech”?
Patrick Armstrong of ESMA gave an overview on 27 November of ESMA’s position on regulatory technology or “regtech.” The speech focused on ESMA’s “evolutionary rather than revolutionary approach.”
Read: The speech