MIFID II – end of “no LEI” exemption for transaction reporting; ESMA takes stock of MiFID II achievements

ESMA confirmed on 20 June that the current exemption from using Legal Entity Identifiers for certain transactions under the MIFID II transaction reporting regime will last until 2 July 2018.

Read: The ESMA statement

Read: The associated press release

ESMA Chair Steven Maijoor ESMA Chair highlighted on 21 June, ESMA’s current priorities under MIFID II, highlighting the growth in organised trading facilities and systematic internaliser as trading venues.

Read: The speech

EMIR – List of central counterparties (CCPs) established in non-EEA countries which have applied for recognition under EMIR updated

ESMA updated its list of central counterparties (CCPs) established in non-EEA countries which have applied for recognition under EMIR, on 19 June. Indonesian and Mexican CCPs have been added.

Read: Full list of CCPs

Other – final ban on contracts for differences and binary options and draft anti-money laundering directive and ESMA’s view on the role of regulation and supervision in financial markets

ESMA formally adopted new measures on the provision of contracts for differences (CFDs) and binary options to retail investors, on 1 June.

They will start to apply from 2 July 2018 for binary options and from 1 August 2018 for CFDs and will apply as follows:

Read: Decisions on Binary Options

Read: Decision on Contracts for Differences 

Read: The formal notice from ESMA and webpage

Read: Explanatory press release 

Verena Ross, Executive Director of ESMA highlighted on 6 June, the role of regulation and supervision in the single European financial market, emphasising the need for supervisory convergence in supervisory practices across the EEA between regulators.

Read: Verena Ross' speach

Money market funds regulation – reporting to national competent authorities

Article 37 of Regulation (EU) 2017/1131 requires money market funds or their managers to report information to the National Competent Authority of the money market fund on at least a quarterly basis (except in case of derogation for money market funds whose assets do not exceed EUR 100 million, in which case the manager must report on an annual basis). Article 37 of the MMF Regulation provides that ESMA shall develop draft implementing technical standards (ITS) to establish a reporting template containing all the information managers of money market funds are required to send to the National Competent Authorities.

ESMA issued its final report on 13 November 2017 containing its technical advice and ITS which were then submitted to the European Commission. On 15 May 2018, the Commission Implementing Regulation (EU) 2018/708 of 17 April 2018, laying down ITS with regard to the template to be used by managers of money market funds, was published in the Official Journal of the EU.

Read: The text of the Money Market Funds Regulation on the EU official website

Updated publication of the ESMA Q&A on the UCITS directive

ESMA published an updated version of its Q&A document on the UCITS Directive (Directive 2014/91/EU of 23 July 2014 amending Directive 2009/65/EC) on 25 May 2018 and stated that the remuneration related disclosure requirements under Article 69(3) (a) of the UCITS Directive also apply to the staff of the delegate of a management company to whom investment management functions (including risk management) have been delegated.

Read: The ESMA Q&A document on the UCITS Directive

ESMA measures affecting CFDs and binary options

ESMA has formally adopted new measures on contracts for differences ("CFDs") and binary options to retail investors.

These measures were published on 1 June 2018 and consist of a prohibition on the marketing, distribution or sale of binary options to retail investors and a restriction on the marketing, distribution or sale of CFDs to retail investors. These measures will start to apply from 2nd July 2018 for binary options and from 1st August 2018 for CFDs.

Read: The ESMA press release