In this issue:
- Regulatory Capital
- Recovery & Resolution
- Bank Structure
- Financial Market Infrastructure
- Financial Services
- Consumer Protection
- Excerpt from Derivatives:
ESMA Consults on the Calculation of Counterparty Risk by UCITS -
On 22 July 2014, the European Securities and Markets Authority (“ESMA”) published a discussion paper seeking comments on its proposals for the calculation of counterparty risk by Undertakings for Collective Investment in Transferable Securities (“UCITS”) for OTC derivative transactions subject to the clearing obligation under the European Market Infrastructure Regulation (“EMIR”). ESMA is concerned about the impact of a failing clearing member, or client of a clearing member, on a UCITS entering cleared OTC derivatives. UCITS are retail investment funds and are regulated across the EU to ensure investor protection. ESMA is seeking views on: (i) how a UCITS should calculate limits on counterparty risk in centrally cleared OTC derivative transactions; and (ii) whether the same rules should be applied by a UCITS for centrally cleared OTC transactions as for exchange-traded derivatives (“ETDs”). Under existing UCITS legislation, a UCITS’ investments in OTC derivatives are subject to counterparty risk exposure limits. ETDs are not subject to the same limitation. The discussion paper is open until 22 October 2014.
Please see full newsletter below for more information.
Firefox recommends the PDF Plugin for Mac OS X for viewing PDF documents in your browser.
We can also show you Legal Updates using the Google Viewer; however, you will need to be logged into Google Docs to view them.
Please choose one of the above to proceed!
LOADING PDF: If there are any problems, click here to download the file.