ESMA to Centralize Instrument Reference and Trade Repositories Data
The European Securities and Markets Authority ("ESMA") has launched two major projects at the request of a number of National Competent Authorities ("NCAs"): the Instrument Reference Data Project and the Trade Repositories Project. The former envisages ESMA providing a central facility in relation to instrument and trading data and the calculation of transparency and liquidity thresholds required in relation to the Markets in Financial Instruments Regulation ("MiFIR"), while under the latter ESMA is to provide a single access point to trade repositories data under EMIR.
The request involves a delegation of some of the NCAs' tasks related to data collection requirements under MiFIR and the Market Abuse Directive to ESMA, as well as the creation of a central access point for regulators to data of the EU's six trade repositories. ESMA will collect data directly from market infrastructures, and make it available to NCAs and the public through a centralized system. Centralization of these functions is expected to save on costs compared with building similar systems in each country, lowering the burden on the financial system and EU taxpayers, while also working towards harmonization and support of the single market. The Instrument Reference Data Project is expected to go live in early 2017, and the Trade Repositories Project in 2016.
EBA's Recommendations to Non-EU and Review of EU Supervisory Authorities
The European Banking Authority has published a recommendation setting out its opinion on the confidentiality regime of several non-EU supervisory authorities to facilitate their participation in supervisory colleges overseeing international banks, led by EU supervisors.
The EBA expects all competent authorities to which the recommendation is addressed to comply with it and incorporate it into their supervisory practices as appropriate. The competent authorities must notify the EBA as to whether they have complied or intend to comply by June 2, 2015.
In a separate report, the EBA has identified that supervisory authorities across the EU have made significant progress towards improving the convergence of their supervisory practices since 2011 though some differences remain. The report covers the findings of an assessment carried out over the past 3 years, and focuses on Supervisory Review and Evaluation Process and assessment of risks, supervisory stress testing, ongoing review of internal models, and supervisory measures and powers.
Steps Towards a Capital Markets Union
The European Commission is consulting on a blueprint for creating a harmonized capital market across the EU, to facilitate capital raising in the EU while maintaining consumer and investor protection by simplifying the prospectus regime. The Commission is also consulting on an EU framework for securitization, hoping to improve credit information for SMEs, and is supporting the EU Private Placement Initiative. The consultation asks whether an EU private placement market should be created, with some of the same features as the successful US model for fixed rate debt instruments.
The review and capital markets union consultation will close on May 13, 2015, with a report expected by July 2015. Overview.
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