UK Financial Regulatory Developments - June 2016 #12


EBA publishes RTS on specialised lending exposures

EBA has published its final draft RTS on how institutions should take into account and treat several factors when assigning risk weights to specialised lending exposures. The RTS define four classes of specialised lending: project finance, real estate, object finance, and commodities finance, and for each of these four classes a set of assessment criteria is specified by means of a list of factors that institutions shall take into account. EBA says its stance is consistent with that of the Basel Committee. (Source: EBA publishes RTS on specialised lending exposures)


Commission adopts more MiFID 2 RTS

The Commission has adopted:

  • RTS under MiFID 2 on requirements on market making agreements and schemes. This is ESMA’s September 2015 RTS 8, to which the Commission has made some changes, mainly to formatting;
  • RTS under MiFIR on direct, substantial and foreseeable effects of derivative contracts within the EU and the prevention of the evasion of rules and obligations. This is ESMA’s September 2015 RTS 5; and
  • RTS under MiFIR on the volume cap mechanism and the provision of information for transparency and other purposes. This is ESMA’s September 2015 RTS 3.

(Source: MiFID 2 RTS on market making agreements and schemes, MiFIR RTS on direct, substantial and foreseeable effect and MiFIR RTS on volume cap mechanism and Annex)


Commission letter to ESMA on EU MAR draft ITS

The Commission has published a letter from Olivier Guersent, Director-General of the Commission’s Directorate-General for Financial Stability, Financial Services and Capital Markets Union, to Steven Maijoor, ESMA Chair, about the draft implementing technical standard (ITS) on the technical means for appropriate public disclosure of inside information, and for delaying the public disclosure of inside information under EU MAR. Having considered the disclosure rules under the Regulation on wholesale energy market integrity and transparency (REMIT), the Commission believes that the requirement obliging entities that fall within the scope of REMIT to systematically employ the media channels set out in EU MAR is disproportionate. It says the disclosures required in REMIT and its implementing acts allow emission allowance market participants to comply with the disclosure requirement in Article 17(2) of EU MAR. The Commission suggests how ESMA could modify the draft ITS in order for the Commission to then endorse the standards. (Source: Commission letter to ESMA on EU MAR draft ITS)


Commission adopts RTS on central clearing for interest rate derivative contracts

The Commission has published the text of a Delegated Regulation supplementing the European Market Infrastructure Regulation (EMIR) with Regulatory Technical Standards (RTS) on the clearing obligation. The RTS specify that certain over-the-counter (OTC) interest rate derivative contracts denominated in Norwegian Krone (NOK), Polish Zloty (PLN) and Swedish Krona (SEK) must be cleared through central counterparties (CCPs). Also published is an Annex, which sets out the interest rate OTC derivatives classes subject to the clearing obligation. (Source: Commission publishes rules on central clearing for interest rate derivative contracts and Annex)

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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