Securities and markets regulatory news, January 2021 # 2

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Recent regulatory developments of interest to financial institutions and markets. Includes updates on EMIR, REMIT and the CMU. Also check our Related Materials links.

Contents

  • EMIR: European Commission consults on draft Implementing Decisions on equivalence
  • EMIR: ESMA final report on revised guidelines on written agreements between members of CCP colleges
  • EU CMU: Commission consultation on European single access point
  • End of Brexit transition period: Ofgem documents on REMIT registration
  • REMIT: ACER updates requirements and registrations for registered reporting mechanisms
  • REMIT: ACER updates Q&A
  • REMIT: ACER updates open letter on implications of Brexit on market participants' registration and data collection

EMIR: European Commission consults on draft Implementing Decisions on equivalence

The European Commission has published for consultation the following draft Implementing Decisions on equivalence made under Article 13(2) of the European Market Infrastructure Regulation (EMIR):

  • Commission Implementing Decision on the recognition of the legal, supervisory and enforcement arrangements of Brazil for derivatives transactions entered into by Brazilian institutions under the regulation of the Central Bank of Brazil as equivalent to certain requirements of Article 11 of EMIR;
  • Commission Implementing Decision on the recognition of the legal, supervisory and enforcement arrangements of Australia for derivatives transactions supervised by the Australian Prudential Regulation Authority as equivalent to certain requirements of Article 11 of EMIR;
  • Commission Implementing Decision on the recognition of the legal, supervisory and enforcement arrangements of Hong Kong for derivatives transactions supervised by the Hong Kong Monetary Authority as equivalent to certain requirements of Article 11 of EMIR;
  • Commission Implementing Decision on the recognition of the legal, supervisory and enforcement arrangements of Singapore for derivatives transactions supervised by the Monetary Authority of Singapore as equivalent to certain requirements of Article 11 EMIR;
  • Commission Implementing Decision on the recognition of the legal, supervisory and enforcement arrangements of Canada for derivatives transactions supervised by the Office of the Superintendent of Financial Institutions as equivalent to certain requirements of Article 11 of EMIR; and
  • Commission Implementing Decision on the recognition of the legal, supervisory and enforcement arrangements of the United States of America for derivatives transactions supervised by the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the Farm Credit Administration and the Federal Housing Finance Agency as equivalent to certain requirements of Article 11 EMIR.

Comments can be made on the drafts until 17 February 2021. The drafts state that they will enter into force 20 days following publication in the Official Journal of the EU.

EMIR: ESMA final report on revised guidelines on written agreements between members of CCP colleges

ESMA has published the final report on its revised guidelines on written agreements between members of central counterparty (CCP) colleges under EMIR. The revised guidelines take into account changes to composition, functioning and management of CCP colleges, which were introduced by amendments to the regulatory technical standards (RTS) on CCP colleges, and by EMIR 2.2. Section III of the final report provides an overview of the changes to the standard written agreement initially proposed.

The guidelines will be translated into the official EU languages and will then be published on ESMA's website, at which point they will apply. Publication of the translations in the official EU languages will trigger a two-month period during which national competent authorities must notify ESMA whether they already comply, or intend to comply, with the guidelines.

The revised guidelines replace the original version of the guidelines adopted on 4 June 2013.

EU CMU: Commission consultation on European single access point

The European Commission has published a consultation on establishing a European single access point (ESAP) for companies' financial and sustainable investment-related information that must be made public pursuant to EU legislation. The establishment of the ESAP is the first action in the Commission's new action plan on the capital markets union (CMU).

The consultation, which is in the form of an online questionnaire, seeks views on:

  • the scope of information that should be included in the ESAP;
  • the format(s) in which the information in the ESAP should be made available;
  • the preferred technical solution(s) to establish the architecture of the ESAP; and
  • whether companies, other than those with securities listed on EU regulated markets (for example, unlisted companies and those listed on an SME growth market), should be allowed to disclose information on the ESAP on a voluntary basis.

The deadline for responding is 3 March 2021.

End of Brexit transition period: Ofgem documents on REMIT registration

The Office of Gas and Electricity Markets (Ofgem) has published various documents relating to registration under Regulation 1227/2011 on wholesale energy market integrity and transparency (REMIT) following the end of the UK-EU transition period.

Market participants (MPs) based in GB, trading wholesale energy products deliverable in GB, are required to register with Ofgem. However, Ofgem has published a Direction providing that, until further notice, MPs trading wholesale energy products deliverable in GB that are already registered with the national regulatory authority (NRA) of an EU member state, or with the Northern Ireland Authority, do not need to register with Ofgem. This is intended to minimise potential disruption to GB wholesale energy markets, and to ensure that registration obligations on MPs can be met in the least burdensome way.

Following the end of the transition period, Ofgem will no longer use ACER's Central European Register of MPs to administer registration requests and MPs may not use it to register with Ofgem. Ofgem has set up its own registration system. Ofgem has published a new version of its REMIT Registration User Guide, updated to reflect the UK's departure from the EU. The guide provides clear definitions on the information needed to register in GB and instructions on how to register.

Ofgem has also published the REMIT Registration Form to be completed by market participants required to register with Ofgem under REMIT as amended, or by market participants already registered with Ofgem who need to amend their registration details. It has also published a REMIT Registration Privacy Notice and a public version of the GB Registration database.

REMIT: ACER updates requirements and registrations for registered reporting mechanisms

The Agency for the Cooperation of Energy Regulators (ACER) has announced that it has updated its requirements for registered reporting mechanisms (RRMs) to reflect a December 2020 decision from the European Commission on fees under REMIT and will resume the registration of RRMs under REMIT. ACER had suspended the processing of pending RRM applications because of resource limitations. However, ACER has now resumed the registration of RRMs and will start to process pending and new applications. ACER will inform stakeholders about its schedules in future communications. An updated RRM application form has also been made available.

REMIT: ACER updates Q&A

ACER has published an updated version of its Q&A on REMIT. The updated Q&A include four new Q&As providing additional information on transaction reporting (questions III.3.46 and III.3.47) and inside information (questions III.7.22 and III.7.23).

REMIT: ACER updates open letter on implications of Brexit on market participants' registration and data collection

ACER updated its open letter on the implications of Brexit on the registration of market participants and data collection under REMIT. The letter covers the re-registration of market participants currently registered in the UK and data collection.

[View source.]

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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