ESMA issued a statement in relation to the impact on ESMA's databases in a no-deal scenario, whereby the United Kingdom's Financial Conduct Authority will cease sending data to ESMA and will no longer have access to ESMA's IT applications and databases. Under a no-deal Brexit, no new UK-related data will be received and processed by ESMA nor published on the ESMA website from 30 March 2019. ESMA's statement aims to inform stakeholders on the approach it will take on all ESMA IT applications and databases. It sets out details on the following calculations under a no-deal Brexit: - Reference data; - Relevant Competent Authority (RCA); - Annual transparency calculations for equity instruments; - Transparency calculations for non-equity instruments (Quarterly liquidity determination for bonds & Annual transparency calculations for bonds (LIS, SSTI) and for all non-equity instruments other than bonds (liquidity status, LIS, SSTI)); - Calculations for systematic internalisers (SI) determination; - Double Volume Cap; and - Ancillary Activity calculations.
ESMA has agreed Memoranda of Understanding (MoUs) with the Bank of England for the recognition of central counterparties (CCPs) and of the central securities depository (CSD) established in the United Kingdom, that would take effect should the UK leave the European Union without a withdrawal agreement, the no-deal Brexit scenario.
Two new Q&As provide further clarifications in relation to the requirements for submission of reference data under MiFIR relating to the following issues: - Reporting the LEI of the issuers to FIRDS in cases where the issuer of the instrument has a branch(es) that have a LEI. - Reporting maturity, expiry and termination dates to FIRDS. One amendment to an existing Q&A clarifies the use of the Trading Venue Transaction Identification Code (TVTIC) when reporting transactions on complex trades.
ESMA has published the total number of trades and total volume over the period July-December 2018 for the purpose of the systematic internaliser (SI) calculations for 16,690 equity and equity-like instruments and for 417,288 bonds. The results are published only for instruments for which trading venues submitted data for at least 95% of all trading days over the 6-month observation period. The data publications also incorporate OTC trading to the extent it has been reported to ESMA. The publication includes data also for instruments which are no longer available for trading on EU trading venues at the end of December.
ESMA and European securities regulators have agreed Memoranda of Understanding (MoUs) with the Financial Conduct Authority (FCA) of the United Kingdom (UK). The MoUs form part of authorities' preparations should the UK leave the EU without a withdrawal agreement, the no-deal Brexit scenario. The MoUs will therefore only take effect in the event of a no-deal Brexit scenario. The MoUs are similar to those already concluded on the exchange of information with many third country supervisory authorities.
ESMA published an update of its action plan (within its updated Q&As on MiFID II and MiFIR transparency topics) for the systematic internaliser regime calculations ahead of the next schedule publication on 1 February 2019. The updated action plan maintains the ongoing publication for equity, equity-like instruments and bonds while postponing the publication for derivatives and other non-equity instruments until at the latest 2020
Two new Q&A provide clarification on provisions of the BMR regarding the scope of application of the Commission Delegated Regulations adopted under the BMR depending on the type of benchmark and in particular: (i) Regulated-data benchmarks; (ii) Interest-rate benchmarks; and (iii) Commodity benchmarks.
EBA published its final Guidelines regarding the types of exposures to be associated with high risk under the Capital Requirements Regulation (CRR). Through these Guidelines, the EBA aims not only to enable a higher degree of comparability in terms of current practices in identifying exposures associated with high risk, but also to facilitate the transition to the upcoming regulatory revisions, noting that the forthcoming implementation of the revised Basel standards will only apply as of 2022.
The report provides an overview on the establishment and application of AMPs in the EU, with particular reference to the AMPs established on the basis of the Market Abuse Directive and which were still in force when MAR became applicable, and the AMPs which have been established under MAR.