ESMA Updates Q&A on Application of AIFMD
On May 12, the European Securities and Markets Authority (ESMA) published an updated version of its Q&A paper on the application of the Alternative Investment Fund Managers Directive (2011/61/EU) (AIFMD) (2015/ESMA/850). The Q&A includes new questions and answers on reporting and calculation of leverage. The aim of the Q&A is to promote common supervisory approaches and practices in the application of the AIFMD and its implementing measures.
EBA Consults on Draft RTS on Specialized Lending Exposures
On May 11, the European Banking Authority (EBA) published a consultation paper (EBA/CP/2015/09) on draft regulatory technical standards (RTS) on assigning risk weights to specialized lending exposures under Article 153(9) of the Capital Requirements Regulation (Regulation 575/2013).
Specialized lending is a type of exposure towards an entity specifically created to finance or operate physical assets, where the primary source of income and repayment of the obligation lies directly with the assets being financed.
The proposed RTS define four classes of specialized lending:
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project finance;
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real estate;
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object finance; and
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commodities finance.
For each of these classes, the draft RTS specify a list of factors that institutions shall take into account and propose two options on how these factors should be combined to determine the risk weight assigned to the specialised lending exposure. The EBA has invited responses to the consultation before August 11, 2015, and will hold a public hearing for discussion on July 6, 2015.
ESMA Publishes Consultation Paper on Clearing Obligation Under EMIR
On May 11, the European Securities and Markets Authority (ESMA) published a fourth consultation paper (ESMA/2015/807) on the clearing obligation under EMIR (the Regulation on OTC derivative transactions, central counterparties and trade repositories (Regulation 648/2012)). The consultation paper provides clarifications on various aspects of the draft regulatory training standards that ESMA is required to draft and submit to the European Commission. Stakeholders are invited to provide comments on the consultation paper before July 15, 2015.
EBA Final Report on Guidelines on Triggers for Use of Early Intervention Measures Under BRRD
On May 8, the European Banking Authority (EBA) published its final report (EBA/GL/2015/03) on guidelines on triggers for the use of early intervention measures under Article 27(4) of the Bank Recovery and Resolution Directive (2014/59/EU) (BRRD). The guidelines identify a set of triggers that are closely linked to the outcomes of the common EU supervisory review and evaluation process conducted by national competent authorities, and elaborate on the circumstances prompting the consideration of whether to apply early intervention measures. The guidelines will apply from January 1, 2016.
ESMA Publishes Guidelines on the Definitions of Commodity Derivatives Under MIFID
On May 6, the European Securities and Markets Authority (ESMA) published guidelines (ESMA/2015/675) on the definitions of commodity derivatives and their classification under C6 and C7 listed in Section C of Annex 1 to the Markets in Financial Instruments Directive (2004/39/EC) (MiFID).
The guidelines will apply to national competent authorities from August 7, 2015 and are intended to apply until the MiFID II Directive comes into force on January 3, 2017. The guidelines will clarify the definitions by specifying, in particular, what is meant by "physically settled" and confirming that forwards traded on a regulated market or multilateral trading facility (MTF) fall within the scope of MiFID.
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