In this issue:

- Derivatives

- Compensation

- Recovery & Resolution

- Bank Prudential Regulation and Regulatory Capital

- Financial Market Infrastructure

- Financial Services

- Consumer Protection

- Excerpt from Derivatives:

Interim Solution for FX Derivatives Definition Proposed by European Commission -

On 31 July 2014, the European Securities and Markets Authority (“ESMA”) published a letter (dated 23 July 2014) from the European Commission regarding the definition of derivatives for the purposes of reporting under the European Market Infrastructure Regulation (“EMIR”). Derivatives are defined by reference to the list set out in the Markets and Financial Instruments Directive (“MiFID I”) which, because it has been transposed into national laws by member states, has resulted in no common definition of a derivative or derivative contract in the EU, particularly for FX forwards and physically settled commodity forwards.