AIMA BRIEFING NOTE. The interplay between European and US derivatives trading rules. July 2015 (version 2)

Size: px
Start display at page:

Download "AIMA BRIEFING NOTE. The interplay between European and US derivatives trading rules. July 2015 (version 2)"

Transcription

1 AIMA BRIEFING NOTE The interplay between European and US derivatives trading rules July 2015 (version 2)

2 Disclaimer This document is provided to and for AIMA members only. It is intended as indicative guidance only and is not to be taken or treated as a substitute for specific advice, whether legal advice or otherwise. All copyright in this document belongs to AIMA and reproduction of part or all of the contents is strictly prohibited unless prior permission is given in writing by AIMA. The interplay between European and US derivatives trading rules While derivatives reforms in the US and EU stem from the same G20 commitment 1, implementation has taken a very different path, at times leading to divergence between the content and timelines for the new rules in the US and EU. Plenty has been written about the differences between the clearing regimes in the US and EU highlighting key differences in terms of segregation standards but derivatives execution requirements have received less attention. This note offers a perspective on the relationship between US and EU derivatives execution rules. Europe: A staggered approach to delivering the G20 package The US tackled the G20 derivatives reform package with a single legislative act, the Dodd Frank Act. In Europe, reform measures were split across two packages of legislation: EMIR 2 and MiFID2 3. EMIR, for which primary legislation was finalised in 2012, tackled clearing, reporting and margin standards. MiFID2, for which primary legislation was finalised in 2014, covers the derivatives execution requirement and associated transparency rules. Secondary rules under both EMIR and MiFID2 are still being written. It is at this point worth a brief digression to explain in brief some of the key aspects of the European legislative process that have shaped the legislation: The split between primary and secondary legislation: European financial services regulation is typically delivered through a process that distinguishes between primary legislation (Level 1) that sets the broad policy intent and secondary legislation (Level 2) that sets out the detailed parameters needed to support the primary legislation. A confusing cast of actors: A simple characterisation of the European policy process goes as follows: The European Commission the EU s civil service proposes primary legislation. European Member States represented through the Council and the European Parliament the directly-elected representatives of 1 All standardised OTC derivative contracts should be traded on exchanges or electronic trading platforms, where appropriate, and cleared through central counterparties by end at the latest. OTC derivative contracts should be reported to trade repositories. Noncentrally cleared contracts should be subject to higher capital requirements. Pittsburgh, Regulation (EU) No 648/2012 on OTC derivatives, central counterparties and trade repositories. Also known as the European Market Infrastructure Regulation, hence the acronym EMIR. 3 References in this note to MiFID2 cover the package of two legislative instruments, the updated Markets in Financial Instruments Directive text, i.e. MiFID2, and new companion regulation, MiFIR. Derivatives trading requirements are actually contained in the MiFIR part of the package. See and 2

3 Europe s citizens each have a say over the text. The final primary legislation represents the outcome of the trialogue negotiations between the three institutions. The elaboration of secondary legislation adds further procedural complexity. Without addressing this in full, it is worth noting the important role played by the European Supervisory Authorities (ESAs; the EU umbrella bodies for national securities, banking and insurance regulators). The European Securities and Markets Authority (ESMA), plays the most prominent role in the context of derivatives reform implementation. The European Commission remains responsible for the formal adoption of rules and can overrule ESMA if it does not agree with its approach. Tension between the national and regional level: European law distinguishes between Directives (which Member States must write into their own law) and Regulations, which are directly applicable across the EU. The scope for Member States to gold-plate, i.e. to go above and beyond EU requirements, is therefore greatest where a Directive is involved. From MiFID to MiFID2 In order to understand the way in which MiFID2 regulates derivatives trading, it is important to understand how the original MiFID legislation, in force since 2007, has been updated to implement the G20 obligation. The original MiFID harmonised the regulation of trading venues in the EU, introducing the concepts of Regulated Market and Multilateral Trading Facility (MTF). The MTF concept is associated with less onerous governance requirements and was intended to facilitate competition between equities trading venues in the EU (noting that some Member States had until that point required trading in equities to take place on the main stock exchange, so-called concentration rules ). The original MiFID also set out transparency obligation for shares traded on venues, with requirements in respect of both pre- and post-trade transparency. MiFID2 builds on the original MiFID by extending transparency requirements to non-equities instruments (including bonds and derivatives) and by adding a new category of trading venue, Organised Trading Facility (OTF). It also introduces a derivatives trading obligation requiring that the sufficiently liquid subset of contracts that are subject to the EMIR clearing obligation must be traded on a venue an OTF, MTF or regulated market. In what follows, we discuss these requirements in further detail. MiFID2 trading venues As noted above, MTFs and regulated markets are established concepts. MiFIR recital 7 describes the key features of such venues as follows: (7) The definitions of regulated market and multilateral trading facility (MTF) should be clarified and remain closely aligned with each other to reflect the fact that they represent effectively the same organised trading functionality. The definitions should exclude bilateral systems where an investment firm enters into every trade on own account, even as a riskless counterparty interposed between the buyer and seller. Regulated markets and MTFs should not be allowed to execute client orders against proprietary capital. The term system encompasses all those markets that are composed of a set of rules and a trading platform as well as those that only function on the basis of a set of rules. Regulated markets and MTFs are not obliged to operate a technical system for matching orders and should be able to operate other trading protocols including systems whereby users are able to trade against quotes they request from multiple providers. A market which is only composed of a set of rules that governs aspects 3

4 related to membership, admission of instruments to trading, trading between members, reporting and, where applicable, transparency obligations is a regulated market or an MTF within the meaning of this Regulation and the transactions concluded under those rules are considered to be concluded under the systems of a regulated market or an MTF. The term buying and selling interests is to be understood in a broad sense and includes orders, quotes and indications of interest. One of the important requirements concerns the obligation that the interests be brought together in the system by means of non-discretionary rules set by the system operator. That requirement means that they are brought together under the system s rules or by means of the system s protocols or internal operating procedures, including procedures embodied in computer software. The term non-discretionary rules means rules that leave the regulated market or the market operator or investment firm operating an MTF with no discretion as to how interests may interact. The definitions require that interests be brought together in such a way as to result in a contract which occurs where execution takes place under the system s rules or by means of the system s protocols or internal operating procedures. It is worth noting the emphasis placed on non-discretionary rules to govern the execution of orders. OTFs differ in that their operators do have discretion over order interaction: MiFIR recital (8) In order to make Union financial markets more transparent and efficient and to level the playing field between various venues offering multilateral trading services it is necessary to introduce a new trading venue category of organised trading facility (OTF) for bonds, structured finance products, emissions allowances and derivatives and to ensure that it is appropriately regulated and applies nondiscriminatory rules regarding access to the facility. That new category is broadly defined so that now and in the future it should be able to capture all types of organised execution and arranging of trading which do not correspond to the functionalities or regulatory specifications of existing venues. Consequently, appropriate organisational requirements and transparency rules which support efficient price discovery need to be applied. The new category encompasses systems eligible for trading clearing-eligible and sufficiently liquid derivatives. It should not include facilities where there is no genuine trade execution or arranging taking place in the system, such as bulletin boards used for advertising buying and selling interests, other entities aggregating or pooling potential buying or selling interests, electronic post-trade confirmation services, or portfolio compression, which reduces non-market risks in existing derivatives portfolios without changing the market risk of the portfolios. Portfolio compression may be provided by a range of firms which are not regulated as such by this Regulation or by Directive 2014/65/EU, such as central counterparties (CCPs), trade repositories as well as by investment firms or market operators. It is appropriate to clarify that where investment firms and market operators carry out portfolio compression certain provisions of this Regulation and of Directive 2014/65/EU are not applicable in relation to portfolio compression. Since central securities depositories (CSDs) will be subject to the same requirements as investment firms when providing certain investment services or performing certain investment activities, the provisions of this Regulation and of Directive 2014/65/EU should not be applicable to firms that are not regulated thereby when carrying out portfolio compression. (9) That new category OTF will complement the existing types of trading venues. While regulated markets and MTFs have non-discretionary rules for the execution of transactions, the operator of an OTF should carry out order execution on a discretionary basis subject, where applicable, to the pre-transparency requirements and best execution obligations. Consequently, conduct of business rules, best execution and client order handling obligations should apply to the transactions concluded on an OTF operated by an investment firm or a market operator. In addition, any market operator authorised to operate an OTF should comply with Chapter 1 of Directive 2014/65/EU regarding conditions and procedures for authorisation of investment firms. The investment firm or the market operator operating an OTF should 4

5 be able to exercise discretion at two different levels: first when deciding to place an order on the OTF or to retract it again and second when deciding not to match a specific order with the orders available in the system at a given point in time, provided that that complies with specific instructions received from clients and with best execution obligations. For the system that crosses client orders the operator should be able to decide if, when and how much of two or more orders it wants to match within the system. In accordance with Article 20(1), (2), (4) and (5) of Directive 2014/65/EU and without prejudice to Article 20(3) of Directive 2014/65/EU, the firm should be able to facilitate negotiation between clients as to bring together two or more potentially compatible trading interests in a transaction. At both discretionary levels the OTF operator must have regard to its obligations under Articles 18 and 27 of Directive 2014/65/EU. The market operator or investment firm operating an OTF should make clear to users of the venue how they will exercise discretion. Because an OTF constitutes a genuine trading platform, the platform operator should be neutral. Therefore, the investment firm or market operator operating the OTF should be subject to requirements in relation to non-discriminatory execution and neither the investment firm or market operator operating the OTF nor any entity that is part of the same group or legal person as the investment firm or market operator should be allowed to execute client orders in an OTF against its proprietary capital. For the purpose of facilitating the execution of one or more client orders in bonds, structured finance products, emission allowances and derivatives that have not been declared subject to the clearing obligation in accordance with Article 5 of Regulation (EU) No 648/2012 of the European Parliament and of the Council (6), an OTF operator is permitted to use matched principal trading within the meaning of Directive 2014/65/EU provided the client has consented to that process. In relation to sovereign debt instruments for which there is not a liquid market, an investment firm or market operator operating an OTF should be able to engage in dealing on own account other than matched principal trading. When matched principal trading is used all pre-trade and post-trade transparency requirements as well as best execution obligations must be complied with. The OTF operator or any entity that is part of the same group or legal person as the investment firm or market operator should not act as systematic internaliser in the OTF operated by it. Furthermore, the operator of an OTF should be subject to the same obligations as an MTF in relation to the sound management of potential conflicts of interest. As noted in the legislative language above, the creation of the OTF category was intended to support the move of derivatives contracts onto venues by creating a category of venue in which the venue operator would have greater discretion over how to match orders, something arguably more important in the context of contracts that are more heterogeneous and thinly-traded. Inter-dealer brokers were strong advocates of the OTF framework, which was seen as the means to accommodate their voice-broking services in the new derivatives trading construct. That said, the relevance of the OTF category is at this point open to discussion. There was significant concern during the discussion of the primary legislation that giving too much discretion to OTF operators would create a less well regulated category of venue and the rules as they now stand are indicative of a concern about going too far ; note: That the OTF framework cannot be used for equities trading. The ban on use by the OTF operator of its proprietary capital, something that would seem to bar singledealer platforms operated by investment banks from becoming OTFs. A need for client consent to matched principal trading on the OTF. Concern that non-discriminatory access standards could be different to those associated with MTFs. 5

6 Beyond this, however, there has been limited discussion about what the OTF, or indeed MTF, trading environment might look like for derivatives in sharp contrast to the significant discussion in the US about swaps execution by any means of interstate commerce and the design of SEFs. The definition of an OTF in MiFID Article 4(1)(23) describes an OTF as a multilateral system which is not a regulated market or an MTF and in which multiple thirdparty buying and selling interests in bonds, structured finance products, emission allowances or derivatives are able to interact in the system in a way that results in a contract in accordance with Title II of this Directive. The reference to multilateral system has not been specified further and in practice is likely to accommodate a range of different trading functionality, whether pure order book trading or RFQ functionality. Indeed, the nature of the OTF (and MTF) trading environment will be determined to a large extent by pre- and post-trade transparency obligations which are common across all types of trading venue. At this stage, the debate about MiFID2 secondary legislation is heavily focused on the calibration of these requirements for a range of different venue-types. In particular ESMA has discussed the implications for all of the following types of venue: continuousauction-order-book; quote-driven; periodic-auction; RFQ (without discussing a minimum number of requests); voice-trading; and systems not included in the other categories. Given some of the restrictions on OTFs described above and the cross-cutting nature of transparency obligation is it highly likely that certain EU derivatives trading venues will instead fall within the MTF category, hence both OTFs and MTFs should be considered in any discussion about the interplay between the SEF environment and Europe s trading structure. Pre-trade transparency The MiFID2 requirement for pre-trade transparency for non-equities instruments is reproduced below: MiFIR Article 8 Pre-trade transparency requirements for trading venues in respect of bonds, structured finance products, emission allowances and derivatives 1. Market operators and investment firms operating a trading venue shall make public current bid and offer prices and the depth of trading interests at those prices which are advertised through their systems for bonds, and structured finance products, emission allowances and derivatives traded on a trading venue. That requirement shall also apply to actionable indication of interests. Market operators and investment firms operating a trading venue shall make that information available to the public on a continuous basis during normal trading hours. That publication obligation does not apply to those derivative transactions of non-financial counterparties which are objectively measurable as reducing risks directly relating to the commercial activity or treasury financing activity of the non-financial counterparty or of that group. 2. The transparency requirements referred to in paragraph 1 shall be calibrated for different types of trading systems, including order-book, quote-driven, hybrid, periodic auction trading and voice trading systems. [ ] 6

7 As noted above, ESMA s work to calibrate these requirements is ongoing. In practice, calibration means defining the application of the transparency waivers that are also described in the text: MiFIR Article 9 Waivers for non-equity instruments 1. Competent authorities shall be able to waive the obligation for market operators and investment firms operating a trading venue to make public the information referred to in Article 8(1) for: (a) orders that are large in scale compared with normal market size and orders held in an order management facility of the trading venue pending disclosure; (b) actionable indications of interest in request-for-quote and voice trading systems that are above a size specific to the financial instrument, which would expose liquidity providers to undue risk and takes into account whether the relevant market participants are retail or wholesale investors; (c) derivatives which are not subject to the trading obligation specified in Article 28 and other financial instruments for which there is not a liquid market. For ESMA, the task is undoubtedly a challenging one: normal market size and liquid market are open to a very wide spectrum of possible interpretations and a solution that might work for one segment of the market might be inappropriate in a different context. For these reasons, there are fairly fundamental concerns about the ability of policymakers to arrive at a workable calibration in the short time available to get the rules finalised (noting that they need to be in place ahead of the January 2017 go-live for MiFID2). The outcome of ESMA s work will have a significant bearing on what trading on derivatives venues in the EU ultimately look like. For example, would the requirement for publication of current bid and offer prices and the depth of trading interests be compatible with RFQ-based trading systems? To a large degree the drafting does suppose electronic, order-book trading functionality. There is a parallel between ESMA s work and the US block trade threshold, which allows for trades to be negotiated off-sef is they are above a certain size. Post-trade transparency When it comes to trading functionality, pre-trade transparency is likely to the key determinant for derivatives trading venues execution functionality, but it is worth noting that a similar calibration debate is ongoing for post-trade transparency rules: MiFIR Article 10 Post-trade transparency requirements for trading venues in respect of bonds, structured finance products, emission allowances and derivatives 1. Market operators and investment firms operating a trading venue shall make public the price, volume and time of the transactions executed in respect of bonds, structured finance products, emission allowances and derivatives traded on a trading venue. Market operators and investment firms operating a trading venue shall make details of all such transactions public as close to real-time as is technically possible. [ ] 7

8 Again, waivers provide for the possibility of calibrating of this requirement: MiFIR Article 11 Authorisation of deferred publication 1. Competent authorities shall be able to authorise market operators and investment firms operating a trading venue to provide for deferred publication of the details of transactions based on the size or type of the transaction. In particular, the competent authorities may authorise the deferred publication in respect of transactions that: (a) are large in scale compared with the normal market size for that bond, structured finance product, emission allowance or derivative traded on a trading venue, or for that class of bond, structured finance product, emission allowance or derivative traded on a trading venue; or (b) are related to a bond, structured finance product, emission allowance or derivative traded on a trading venue, or a class of bond, structured finance product, emission allowance or derivative traded on a trading venue for which there is not a liquid market; (c) are above a size specific to that bond, structured finance product, emission allowance or derivative traded on a trading venue, or that class of bond, structured finance product, emission allowance or derivative traded on a trading venue, which would expose liquidity providers to undue risk and takes into account whether the relevant market participants are retail or wholesale investors. As noted above, the relevant US comparison is the block trade framework, which provides for delays in post-trade reporting of transactions that meet the threshold. Mandatory execution in the EU The derivatives trading obligation requires entities that are within scope of EMIR clearing to execute those contracts on venue: MiFIR Article 28 Obligation to trade on regulated markets, MTFs or OTFs 1. Financial counterparties as defined in Article 2(8) of Regulation (EU) No 648/2012 and non-financial counterparties that meet the conditions referred to in Article 10(1)(b) thereof shall conclude transactions which are neither intragroup transactions as defined in Article 3 of that Regulation nor transactions covered by the transitional provisions in Article 89 of that Regulation with other such financial counterparties or other such non-financial counterparties that meet the conditions referred to in Article 10(1)(b) of Regulation (EU) No 648/2012 in derivatives pertaining to a class of derivatives that has been declared subject to the trading obligation in accordance with the procedure set out in Article 32 and listed in the register referred to in Article 34 only on: (a) regulated markets; (b) MTFs; (c) OTFs; or 8

9 (d) third-country trading venues, provided that the Commission has adopted a decision in accordance with paragraph 4 and provided that the third country provides for an effective equivalent system for the recognition of trading venues authorised under Directive 2014/65/EU to admit to trading or trade derivatives declared subject to a trading obligation in that third country on a non-exclusive basis. This only applies to the extent that the contract in question is sufficiently liquid, taking into account the following criteria (MiFIR Article 32(3)): (a) the average frequency and size of trades over a range of market conditions, having regard to the nature and lifecycle of products within the class of derivatives; (b) the number and type of active market participants including the ratio of market participants to products/contracts traded in a given product market; (c) the average size of the spreads. Again, it falls to ESMA to apply this test in contrast to the Made Available to Trade (MAT) process, which makes SEFs responsible for assessing whether a contract meets one of the MAT factors. At this stage, it is not clear when ESMA s will carry out its assessment. The MiFID2 primary legislation applies from January 2017, but secondary legislation will be required to subject specific contracts to the trading obligation. The experience under EMIR, where a similar approach was followed to apply the clearing obligation, suggests that the process for secondary rulemaking could be a protracted one and it is likely there will also be some sort of phase-in of the obligation. As noted in the legislative language above, non-eu venues will be eligible for satisfying the derivatives trading obligation to the extent that the rules of the relevant third country have been deemed equivalent by the European Commission. Note that there is a clear expectation of reciprocity on the part of the third-country jurisdiction in order for equivalence to be granted. Another EMIR similarity is the mechanism to avoid overlap with third-country rules, allowing a transaction between one or more third-country entities to follow a third-country s derivatives trading rules where that third country has been deemed equivalent. Non-discriminatory access The SEF construct has come under criticism from the buy-side in the US, in that regulatory reform has not yet managed to change historical trading patterns, leading to the persistence of a two-tier market: A small group of dealers are able transact with each other on exclusive dealer-only trading platforms, commonly referred as the inter-dealer or D2D market. These platforms deny access to all other types of market participants, including investors (e.g., investment funds, insurance companies, corporations, etc.). For investors, the only way to transact with that group of dealers is either bilaterally or on a limited number of dealer-to-customer or D2C trading platforms. This market structure is suboptimal in a number of respects, as it restricts the ability of investors to execute freely with any other counterparty, limits investors choice of trading protocols, compromises investors ability to execute the most favourable prices, inhibits new liquidity providers from entering the market, and engenders concentration of risk in the dealer community. European authorities will be under pressure to use the implementation of MiFID2 as an opportunity to open up D2D trading venues to the client community, although it is not clear at this stage how the EU s provisions on nondiscriminatory access will be applied. Differences between the EU and US in this regard could have a bearing on equivalence discussions. 9

10 Conclusion Given the timelines and pronounced conceptual difference described above, the debate about the interplay between SEFs and MTFs/OTFs is likely to play out over an extended period of time. However, here are some initial observations in this regard: The CFTC has already sought to accommodate MTFs within the SEF regime to some extent with the Q-MTF relief. For a number of reasons, this was not seen as a success (challenges included the ability of MTFs to conform to all of the requirements of the relief, as well as migration of inter-dealer liquidity to entities that are not US Persons). While a significant focus under the SEF rules has been permitted types of trading functionality, far less time has been devoted in Europe to considering how the qualification of MTFs and OTFs as multilateral venues should be understood in terms of trading functionality (e.g. RFQ3 vs RFQ5). Rather, the focus in Europe has been on the transparency obligations for instruments traded on venue and the circumstances in which transparency obligations might be waived or deferred. Ultimately, however, transparency requirements are likely to guide what sort of trading functionality is possible. The precedent from discussions on clearing suggest that the European Commission could be slow to grant a positive equivalence determination in respect of US rules. This has parallels in the Q-MTF debate should deference to other rules be based on detailed correspondence of requirements or a consideration of the overall outcomes that they achieve? Dual registration might also provide a solution for some entities (noting that IGDL already has dual registration as a SEF and MTF). Contact: Adam Jacobs, AIMA The Alternative Investment Management Association Limited (AIMA)

MiFID/MiFIR: The OTF and SI regime for OTC derivatives

MiFID/MiFIR: The OTF and SI regime for OTC derivatives MiFID/MiFIR: The OTF and SI regime for OTC derivatives The International Swaps and Derivatives Association (ISDA) would like to take this opportunity to set out its views on the elements of European Commission

More information

MiFID II: The new market structure paradigm

MiFID II: The new market structure paradigm February 2014 MiFID II: The new market structure paradigm Overview On 14 January 2014, after months of negotiations, EU legislators reached political agreement on reforms to the Markets in Financial Instruments

More information

MiFID 2: markets. Summary. Key business impacts. Key business impacts. Trading venues. Trading and clearing requirements. Algorithmic trading

MiFID 2: markets. Summary. Key business impacts. Key business impacts. Trading venues. Trading and clearing requirements. Algorithmic trading Key business impacts Trading venues Trading and clearing requirements Algorithmic trading Trading venues systems, circuit breakers, electronic trading and tick size regimes Pre- and post-trade transparency

More information

SPECIAL REPORT SERIES: MARKET INFRASTRUCTURE UNDER MIFID II

SPECIAL REPORT SERIES: MARKET INFRASTRUCTURE UNDER MIFID II SPECIAL REPORT SERIES: MARKET INFRASTRUCTURE UNDER MIFID II 13 June 2014 This Special Report is the fourth in FIA and FIA Europe s series covering specific areas of the European Securities and Markets

More information

OTC derivatives reforming EU market structures. Ash Saluja, Partner CMS Cameron McKenna LLP

OTC derivatives reforming EU market structures. Ash Saluja, Partner CMS Cameron McKenna LLP OTC derivatives reforming EU market structures Ash Saluja, Partner CMS Cameron McKenna LLP The OTC derivatives market - a brief reminder. Scope $605 trillion notional amount / $25 trillion gross market

More information

Transparency in the context of Secondary Markets Bond Trading

Transparency in the context of Secondary Markets Bond Trading MiFID II Transparency in the context of Secondary Markets Bond Trading February 2015 Latham & Watkins operates worldwide as a limited liability partnership organized under the laws of the State of Delaware

More information

Flash News. European Parliament adopts MiFID II. 1. Background. 2. MiFID II for banks, investment firms and asset managers

Flash News. European Parliament adopts MiFID II. 1. Background. 2. MiFID II for banks, investment firms and asset managers www.pwc.lu/regulatory-compliance Flash News European Parliament adopts MiFID II 23 April 2014 Following the political agreement reached on 14 January 2014 by the European Parliament, the Council and the

More information

MiFID II/MiFIR series

MiFID II/MiFIR series Financial institutions Energy Infrastructure, mining and commodities Transport Technology and innovation Life sciences and healthcare MiFID II/MiFIR series Trading venues and market infrastructure Briefing

More information

MiFID II Key aspects. I. Introduction

MiFID II Key aspects. I. Introduction MiFID II Key aspects I. Introduction Yesterday the final texts of the revised Markets in Financial Instruments Directive were published in the Official Journal of the European Union. The texts consist

More information

Sea of Change Regulatory reforms charting a new course. Regulation of OTC derivatives markets. A comparison of EU and US initiatives.

Sea of Change Regulatory reforms charting a new course. Regulation of OTC derivatives markets. A comparison of EU and US initiatives. Regulation of OTC derivatives markets A comparison of EU and US initiatives September 2012 Contents Overview Scope Core rules Clearing Trading Margin requirements for uncleared trades Reporting Other rules

More information

Report on Trading of OTC Derivatives

Report on Trading of OTC Derivatives Report on Trading of OTC Derivatives TECHNICAL COMMITTEE OF THE INTERNATIONAL ORGANIZATION OF SECURITIES COMMISSIONS FR03/11 FEBRUARY 2011 Foreword In September 2009, the G-20 Leaders stated that all standardised

More information

Recognised Investment Exchanges. Chapter 2. Recognition requirements

Recognised Investment Exchanges. Chapter 2. Recognition requirements Recognised Investment Exchanges Chapter Recognition REC : Recognition Section.6 : eneral safeguards for.6 eneral safeguards for investors, provision of pre and post-trade information about share trading

More information

Markets in Financial Instruments Directive II Implementation

Markets in Financial Instruments Directive II Implementation Financial Conduct Authority Markets in Financial Instruments Directive II Implementation Consultation Paper I December 2015 Consultation Paper CP15/43*** Markets in Financial Instruments Directive II

More information

Revision of the Markets in Financial Instruments Directive (MiFID II) Fact Sheet

Revision of the Markets in Financial Instruments Directive (MiFID II) Fact Sheet Revision of the Markets in Financial Instruments Directive (MiFID II) Fact Sheet Background to MiFID II and its purpose The Markets in Financial Instruments Directive ( MiFID ) came into force 1 November

More information

30 January 2015. Via Electronic Submission. Fair and Effective Markets Review c/o Bank of England Threadneedle Street London, EC2R 8AH

30 January 2015. Via Electronic Submission. Fair and Effective Markets Review c/o Bank of England Threadneedle Street London, EC2R 8AH 30 January 2015 Via Electronic Submission Fair and Effective Markets Review c/o Bank of England Threadneedle Street London, EC2R 8AH Re: Fair and Effective Markets Review: Consultation document, October

More information

Transaction Reporting - What is Changing Under MiFID II

Transaction Reporting - What is Changing Under MiFID II MiFID II Understanding and Practical Preparation Transaction Reporting - What is Changing Under MiFID II Transaction Reporting This paper forms part of MiFID II: understanding and practical preparation

More information

Table of content. MiFID II: getting ready for implementation

Table of content. MiFID II: getting ready for implementation Table of content MiFID II: getting ready for implementation The European Council adopted a set of legislation on 13 May 2014 regulating the trade in financial instruments and the investment services sector.

More information

MiFID II Trading Venues And High Frequency Trading

MiFID II Trading Venues And High Frequency Trading MiFID II Trading Venues And High Frequency Trading MiFID II Trading Venues And High Frequency Trading This is the third part in a series of Legal Longs on the MiFID II Directive [2014/65/EU] and the Markets

More information

MiFID II / MiFIR: Your Survival Guide Market Structures Tying it All Together

MiFID II / MiFIR: Your Survival Guide Market Structures Tying it All Together MiFID II / MiFIR: Your Survival Guide Market Structures Tying it All Together Jonathan Herbst (Global Head of Financial Services) Tara Mokijewski (Of Counsel) Norton Rose Fulbright LLP 15 October 2014

More information

Principles for US/EU Trading Platform Recognition

Principles for US/EU Trading Platform Recognition February 2016 Principles for US/EU Trading Platform Recognition In order to reduce the risk of market fragmentation and to enhance trading liquidity between US and European markets, the US Commodity Futures

More information

Setting the Institutional and Regulatory Framework for Trading Platforms:

Setting the Institutional and Regulatory Framework for Trading Platforms: ECMI Research Report No. 8/April 2012 Setting the Institutional and Regulatory Framework for Trading Platforms: Does the MiFID definition of OTF make sense? Diego Valiante Abstract As discussions around

More information

Q1. What is a systematic internaliser?

Q1. What is a systematic internaliser? MiFID II/R: Systematic Internalisers A Q&A for bond markets July 2015 Q1. What is a systematic internaliser? A. A systematic internaliser (SI), under the EU MiFID regime, is an investment firm that deals

More information

MiFID 2 for asset managers

MiFID 2 for asset managers Summary Key business impacts Duties to clients Dealing in the markets Organisational requirements MiFID 2 for asset managers Summary The revised Markets in Financial Instruments Directive and the related

More information

Follow-On Analysis to the Report on Trading of OTC Derivatives

Follow-On Analysis to the Report on Trading of OTC Derivatives Follow-On Analysis to the Report on Trading of OTC Derivatives TECHNICAL COMMITTEE OF THE INTERNATIONAL ORGANIZATION OF SECURITIES COMMISSIONS OR02/12 JANUARY 2012 Copies of publications are available

More information

Canadian Securities Administrators. CSA Consultation Paper 92-401. Derivatives Trading Facilities

Canadian Securities Administrators. CSA Consultation Paper 92-401. Derivatives Trading Facilities Canadian Securities Administrators CSA Consultation Paper 92-401 Derivatives Trading Facilities Canadian Securities Administrators Derivatives Committee January 29, 2015 2 TABLE OF CONTENTS Executive Summary...

More information

Market conduct. Chapter 5. Multilateral trading facilities (MTFs)

Market conduct. Chapter 5. Multilateral trading facilities (MTFs) Market conduct Chapter Multilateral trading facilities (MTFs) MAR : Multilateral trading Section.7 : Pre-trade transparency.7 Pre-trade transparency.7.1 R (1) Unless (2),(3) or (4) applies, in respect

More information

Key Points. Ref.:EBF_007865E. Brussels, 09 May 2014

Key Points. Ref.:EBF_007865E. Brussels, 09 May 2014 Ref.:EBF_007865E Brussels, 09 May 2014 Launched in 1960, the European Banking Federation is the voice of the European banking sector from the European Union and European Free Trade Association countries.

More information

COMMISSION STAFF WORKING PAPER EXECUTIVE SUMMARY OF THE IMPACT ASSESSMENT. Accompanying the document. Proposal for a

COMMISSION STAFF WORKING PAPER EXECUTIVE SUMMARY OF THE IMPACT ASSESSMENT. Accompanying the document. Proposal for a EUROPEAN COMMISSION Brussels, XXX SEC(2011) 1227 COMMISSION STAFF WORKING PAPER EXECUTIVE SUMMARY OF THE IMPACT ASSESSMENT Accompanying the document Proposal for a DIRECTIVE OF THE EUROPEAN PARLIAMENT

More information

EUROPEAN COMMISSION Directorate General Internal Market and Services. FINANCIAL SERVICES POLICY AND FINANCIAL MARKETS Securities markets

EUROPEAN COMMISSION Directorate General Internal Market and Services. FINANCIAL SERVICES POLICY AND FINANCIAL MARKETS Securities markets EUROPEAN COMMISSION Directorate General Internal Market and Services FINANCIAL SERVICES POLICY AND FINANCIAL MARKETS Securities markets 8 December 2010 PUBLIC CONSULTATION REVIEW OF THE MARKETS IN FINANCIAL

More information

Market Analysis The Nature and Scale of OTC Equity Trading in Europe April 2011

Market Analysis The Nature and Scale of OTC Equity Trading in Europe April 2011 Association for Financial Markets in Europe The Nature and Scale of Equity Trading in Europe April 2011 Executive Summary It is often reported that the proportion of European equities trading that is over-the-counter

More information

EBF response to ESMA consultation on the exemption for market making activities and primary market operations under Regulation (EU) 236/2012

EBF response to ESMA consultation on the exemption for market making activities and primary market operations under Regulation (EU) 236/2012 EBF Ref.: D1758E-2012 Brussels, 5 October 2012 Launched in 1960, the European Banking Federation is the voice of the European banking sector from the European Union and European Free Trade Association

More information

Transparency and financial stability

Transparency and financial stability Rodrigo Buenaventura Head of the Markets Division European Securities and Markets Authority Verena Ross Executive Director European Securities and Markets Authority Insufficient transparency was one of

More information

Discussion Paper 06/3. Financial Services Authority. Implementing MiFID s best execution requirements

Discussion Paper 06/3. Financial Services Authority. Implementing MiFID s best execution requirements Discussion Paper 06/3 Financial Services Authority Implementing MiFID s best execution requirements May 2006 Contents 1 Overview 2 Execution policies and arrangements 3 Dealer markets 4 Review and monitoring

More information

FESE RESPONSE CESR consultation paper on Standardisation and exchange trading of OTC Derivatives Ref.: CESR/10 610

FESE RESPONSE CESR consultation paper on Standardisation and exchange trading of OTC Derivatives Ref.: CESR/10 610 FESE AISBL Avenue de Cortenbergh, 52 B-1000 Brussels VAT: BE0878.308.670 Tel.: +32 2 551 01 80 Fax : +32 2 512 49 05 FESE RESPONSE CESR consultation paper on Standardisation and exchange trading of OTC

More information

Trade Repository Service White Paper December 2013

Trade Repository Service White Paper December 2013 Trade Repository Service White Paper December 2013 Copyright IntercontinentalExchange, Inc. 2013. All Rights Reserved. Table of Contents DEFINITIONS... 3 EXECUTIVE SUMMARY... 5 OVERVIEW: TRADE REPOSITORIES...

More information

DELEGATED REGULATION (EU)

DELEGATED REGULATION (EU) RTS 15: Draft regulatory technical standards on market making, market making agreements and marking making schemes COMMISSION DELEGATED REGULATION (EU) No /.. of [date] supplementing Directive 2014/65/EU

More information

CREDITEX BROKERAGE LLP BEST EXECUTION POLICY

CREDITEX BROKERAGE LLP BEST EXECUTION POLICY CREDITEX BROKERAGE LLP BEST EXECUTION POLICY Version 1.1 The Execution Policy is applicable to broker services provided by Creditex Brokerage LLP ( CBL ). Introduction When providing brokerage services

More information

EXANE GROUP EXECUTION POLICY

EXANE GROUP EXECUTION POLICY EXANE GROUP EXECUTION POLICY DISCLAIMER Exane 2015. All rights reserved. No part of this document may be reproduced in any form or by any means - electronic, mechanical, photocopying, recording or otherwise

More information

Please find below our responses to the questions raised in the consultation document.

Please find below our responses to the questions raised in the consultation document. 9 May 2014 To: Unit G3 Securities Markets DG Internal Market and Services European Commission Via e-mail to MARKT-G3@ec.europa.eu Re: Consultation Document FX Financial Instruments Dear Sir, Dear Madam,

More information

Eighth Annual Markets Infrastructure Group Seminar: How will MiFID change the way we trade? Imogen Garner Partner 8 July 2015

Eighth Annual Markets Infrastructure Group Seminar: How will MiFID change the way we trade? Imogen Garner Partner 8 July 2015 Eighth Annual Markets Infrastructure Group Seminar: How will MiFID change the way we trade? Imogen Garner Partner 8 July 2015 Timing: MiFID II / MiFIR 2 July MiFID II and MiFIR entered into force 19 December

More information

MiFID II. Key interactions between MiFID/MiFIR II and other EU and US financial services legislation.

MiFID II. Key interactions between MiFID/MiFIR II and other EU and US financial services legislation. July 2012 MiFID II. Key interactions between MiFID/MiFIR II and other EU and US financial services legislation. Introduction MiFID is often described as the corner stone of financial services regulation

More information

(Legislative acts) REGULATIONS

(Legislative acts) REGULATIONS 24.3.2012 Official Journal of the European Union L 86/1 I (Legislative acts) REGULATIONS REGULATION (EU) No 236/2012 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 14 March 2012 on short selling and

More information

Standardisation and Exchange Trading of OTC Derivatives

Standardisation and Exchange Trading of OTC Derivatives The Committe of European Securities Regulators 11-13 avenue de Friedland 75008 Paris France 16 th August 2010 Standardisation and Exchange Trading of OTC Derivatives CFA Institute is pleased to comment

More information

Scope of the Securities Regulations

Scope of the Securities Regulations CHAPTER2 Scopeofthe SecuritiesRegulations T hemifidencompassesinvestmentfirms,regulatedmarkets,andmtf.itregulates investmentadviceasaservicerequiringauthorization.theu.s.regulationsfocus on brokers and

More information

EUROPEAN COMMISSION Internal Market and Services DG FINANCIAL SERVICES POLICY AND FINANCIAL MARKETS Securities markets

EUROPEAN COMMISSION Internal Market and Services DG FINANCIAL SERVICES POLICY AND FINANCIAL MARKETS Securities markets EUROPEAN COMMISSION Internal Market and Services DG FINANCIAL SERVICES POLICY AND FINANCIAL MARKETS Securities markets Brussels, 13/6/05 D(2005) Working document ESC/21/2005 Explanatory note: Principal

More information

Final European Standards for Derivatives Collateralisation

Final European Standards for Derivatives Collateralisation Client Alert 17 March 2016 Final European Standards for Derivatives Collateralisation On 8 March 2016, the three European Supervisory Authorities (ESAs) 1 published their final draft regulatory technical

More information

Title VII: Derivatives (Wall Street Transparency and Accountability Act of 2010)

Title VII: Derivatives (Wall Street Transparency and Accountability Act of 2010) Title VII: Derivatives (Wall Street Transparency and Accountability Act of 2010) Summary: Regulates the previously unregulated, over-the-counter (OTC) derivatives market Requires registration of swap dealers,

More information

DBA response to CESR s Consultation Paper MiFID 2 nd Set of Mandates

DBA response to CESR s Consultation Paper MiFID 2 nd Set of Mandates DANISH BANKERS ASSOCIATION CESR DBA response to CESR s Consultation Paper MiFID 2 nd Set of Mandates Introduction The Danish Bankers Association appreciates this opportunity to provide comments on CESR

More information

FS Regulatory Brief Derivatives: SEFs Opening bell sounds

FS Regulatory Brief Derivatives: SEFs Opening bell sounds Derivatives: SEFs Opening bell sounds June 2013 Overview The Commodity Futures Trading Commission ( CFTC ) issued three final rules that will move bilaterally traded swaps onto execution platforms that

More information

REGISTRATION OF FOREIGN BOARDS OF TRADE. A response paper by the Futures and Options Association

REGISTRATION OF FOREIGN BOARDS OF TRADE. A response paper by the Futures and Options Association REGISTRATION OF FOREIGN BOARDS OF TRADE A response paper by the Futures and Options Association JANUARY 2011 1 REGISTRATION OF FOREIGN BOARDS OF TRADE 1. Introduction 1.1 The Futures and Options Association

More information

CONSULTATION DOCUMENT

CONSULTATION DOCUMENT EUROPEAN COMMISSION Directorate General Internal Market and Services FINANCIAL MARKETS Securities Markets Brussels, 10 April 2014 Disclaimer CONSULTATION DOCUMENT FX FINANCIAL INSTRUMENTS This document

More information

ICAP Execution Policy

ICAP Execution Policy ICAP Execution Policy August 2013 This Execution Policy is applicable to broker services provided to you by ICAP Group and/or any of its relevant group companies, as notified to you from time to time (

More information

Top Ten Things every Fund Manager should know about MiFID2

Top Ten Things every Fund Manager should know about MiFID2 Top Ten Things every Fund Manager should know about MiFID2 October 2015 Contents 1 Will MiFID2/MiFIR also apply to EU managers which are regulated under AIFMD and the UCITS Directive?... 2 2 I ve been

More information

Risk mitigation requirements for daily valuation a. The use of the term outstanding contracts under Article 11(2) of EMIR;

Risk mitigation requirements for daily valuation a. The use of the term outstanding contracts under Article 11(2) of EMIR; The European Securities and Markets Association (ESMA) 103 Rue de Grenelle Paris 75007 France Attention: Rodrigo Buenaventura/Fabrizio Planta 12 March 2013 Dear Sirs, The Alternative Investment Management

More information

Summary. Key business impacts. Key business impacts. Trading venues. Product intervention commodity derivatives

Summary. Key business impacts. Key business impacts. Trading venues. Product intervention commodity derivatives Key business impacts Trading venues Product intervention MiFID 2: commodity derivatives Summary The Markets in Financial Instruments Directive (MiFID) required member state implementation by 1 November

More information

Glossary of useful terms linked to markets in financial instruments IN ALPHABETICAL ORDER

Glossary of useful terms linked to markets in financial instruments IN ALPHABETICAL ORDER Glossary of useful terms linked to markets in financial instruments IN ALPHABETICAL ORDER Access requirements Admission to trading Algorithm Algorithmic trading Appropriateness test Approved Publication

More information

Selected EU Regulatory Developments. Lugano Fund Forum, 23rd November 2015 Delphine Calonne, Senior Legal Counsel SFAMA

Selected EU Regulatory Developments. Lugano Fund Forum, 23rd November 2015 Delphine Calonne, Senior Legal Counsel SFAMA Selected EU Regulatory Developments Lugano Fund Forum, 23rd November 2015 Delphine Calonne, Senior Legal Counsel SFAMA Table of contents I. EMIR / FMIA II. MiFID II III. AIFMD IV. UCITS V EMIR / FMIA Why

More information

Best execution under MIFID

Best execution under MIFID THE COMMITTEE OF EUROPEAN SECURITIES REGULATORS Ref: CESR/07-050b Best execution under MIFID Public consultation February 2007 11-13 avenue de Friedland - 75008 PARIS - FRANCE - Tel.: 33.(0).1.58.36.43.21

More information

EUROPEAN SECURITIES AND MARKETS AUTHORITY (ESMA) CONSULTATION PAPER

EUROPEAN SECURITIES AND MARKETS AUTHORITY (ESMA) CONSULTATION PAPER EUROPEAN SECURITIES AND MARKETS AUTHORITY (ESMA) CONSULTATION PAPER 22 City Road Finsbury Square London EC1Y 2AJ Tel: +44 (0) 20 7448 7100 Fax: +44 (0) 20 7638 4636 Email: info@apcims.co.uk DRAFT TECHNICAL

More information

DETAILED TABLE OF CONTENTS

DETAILED TABLE OF CONTENTS DETAILED TABLE OF CONTENTS Table of Cases Table of Legislation List of Abbreviations xxii xxv lxi I. Introduction 1 1.1 EU Securities and Markets Regulation 1 1.2 Securities and Markets Regulation and

More information

Transposition of the Markets in Financial Instruments Directive II

Transposition of the Markets in Financial Instruments Directive II Transposition of the Markets in Financial Instruments Directive II March 2015 Transposition of the Markets in Financial Instruments Directive II March 2015 Crown copyright 2015 This publication is licensed

More information

MiFID II Level 2 and energy trading:

MiFID II Level 2 and energy trading: MiFID II Level 2 and energy trading: How to further specify the ancillary activity exemption in Article 2? 17 April 2015 1. Introduction The undersigned associations believe that open, robust, liquid,

More information

THE IMPACT OF EMIR ON FINANCIAL COUNTERPARTIES

THE IMPACT OF EMIR ON FINANCIAL COUNTERPARTIES March 15, 2013 THE IMPACT OF EMIR ON FINANCIAL COUNTERPARTIES To Our Clients and Friends: On 16 August 2012, The European Market Infrastructure Regulation ( EMIR ) 1 came into force with immediate and

More information

CMU and a review of the regulatory initiatives affecting the international securities markets ICMA/NCMF Bond Market Seminar, Helsinki Martin Scheck,

CMU and a review of the regulatory initiatives affecting the international securities markets ICMA/NCMF Bond Market Seminar, Helsinki Martin Scheck, CMU and a review of the regulatory initiatives affecting the international securities markets ICMA/NCMF Bond Market Seminar, Helsinki Martin Scheck, 22 January 2015 Contents Introduction current status

More information

The Investment Services Directive a New Basis for Securities Trading in Europe

The Investment Services Directive a New Basis for Securities Trading in Europe 77 The Investment Services Directive a New Basis for Securities Trading in Europe Birgitte Bundgaard and Anne Reinhold Pedersen, Financial Markets INTRODUCTION On 7 October 2003 the Council of Ministers

More information

ESMA Discussion Paper on Draft Technical Standards for the Regulation on improving securities settlement in the European Union and on central

ESMA Discussion Paper on Draft Technical Standards for the Regulation on improving securities settlement in the European Union and on central E u r e x C l e a r i n g R e s p o n s e t o ESMA Discussion Paper on Draft Technical Standards for the Regulation on improving securities settlement in the European Union and on central securities depositories

More information

FX & MIFID ECB FX Contact Group

FX & MIFID ECB FX Contact Group FX & MIFID ECB FX Contact Group Richard Haynes Fixed Income Sales & Trading Compliance Department Citigroup 21 November 2007 FX & MIFID Introduction MiFID Overview What FX instruments are within scope

More information

MiFID - what is it, and what does it mean?

MiFID - what is it, and what does it mean? MIFID MATTERS - ASSESSING THE WIDER AGENDA MiFID - what is it, and what does it mean? February 2012 kpmg.com 2 MiFID - what is it, and what does it mean? In October 2011, the European Commission published

More information

EMIR Key business impacts for asset managers

EMIR Key business impacts for asset managers External perspective EMIR Key business impacts for asset managers Brian Jackson Partner Audit Deloitte Niamh Geraghty Director Audit Deloitte Patrick Rooney Manager Investment Management Activity Deloitte

More information

Argus response to consultation questions

Argus response to consultation questions Argus response to consultation questions Argus has decided to limit its response to those questions it considers most directly relevant to its business and the markets for which is provides post-trade

More information

Gaps and Duplicative Requirements, August 30, 2013, available at http://www.cftc.gov/ucm/groups/public/@newsroom/documents/file/odrgreport.pdf.

Gaps and Duplicative Requirements, August 30, 2013, available at http://www.cftc.gov/ucm/groups/public/@newsroom/documents/file/odrgreport.pdf. Report of the OTC Derivatives Regulators Group (ODRG) 1 on Cross-Border Implementation Issues March 2014 At the St. Petersburg summit in September 2013, the G20 leaders welcomed the set of understandings

More information

REFORM OF SPANISH POST-TRADING SYSTEMS

REFORM OF SPANISH POST-TRADING SYSTEMS LEGAL UPDATE I CORPORATE PRACTICE AREA July 2015 REFORM OF SPANISH POST-TRADING SYSTEMS CONTENTS INTRODUCTION 2 MAIN ASPECTS OF THE REFOMR AND OF THE ACT 11/2015 3 INTRODUCTION The amendment to the Spanish

More information

INVESTMENT MANAGEMENT ASSOCIATION PENSION FUND DISCLOSURE CODE

INVESTMENT MANAGEMENT ASSOCIATION PENSION FUND DISCLOSURE CODE INVESTMENT MANAGEMENT ASSOCIATION PENSION FUND DISCLOSURE CODE September 2007 INVESTMENT MANAGEMENT ASSOCIATION PENSION FUND DISCLOSURE CODE September 2007 CONTENTS THE CODE 1 Introduction 2 Scope 3 Disclosure

More information

A guide to London Stock Exchange trading services for equity securities

A guide to London Stock Exchange trading services for equity securities A guide to London Stock Exchange trading services for equity securities Contents Background 01 Trading services for equity securities 03 SETS 04 SETSqx 06 SEAQ 08 Criteria and process for allocating securities

More information

ESMA Discussion Paper on Central Securities Depositories Regulation

ESMA Discussion Paper on Central Securities Depositories Regulation European Securities Markets Authority 103, rue de Grenelle 75007 Paris 22 May 2014 Submitted via online form RE: ESMA Discussion Paper on Central Securities Depositories Regulation Dear Sirs, BlackRock

More information

Luxembourg. Newsletter Q2/Q3 2014. News on MiFID II and its implementation. Regulation on key information documents for investment products

Luxembourg. Newsletter Q2/Q3 2014. News on MiFID II and its implementation. Regulation on key information documents for investment products Luxembourg News on MiFID II and its implementation Regulation on key information documents for investment products Final adoption of the UCITS V directive by the EU parliament Newsletter Q2/Q3 2014 Avocats

More information

Reply form for the ESMA MiFID II/MiFIR Discussion Paper. Template for comments for the ESMA MiFID II/MiFIR Discussion Paper

Reply form for the ESMA MiFID II/MiFIR Discussion Paper. Template for comments for the ESMA MiFID II/MiFIR Discussion Paper Reply form for the ESMA MiFID II/MiFIR Discussion Paper Template for comments for the ESMA MiFID II/MiFIR Discussion Paper 22 May 2014 Date: 22 May 2014 Responding to this paper The European Securities

More information

Call for evidence on the impact of MiFID on secondary market functioning

Call for evidence on the impact of MiFID on secondary market functioning Call for evidence on the impact of MiFID on secondary market functioning The ABI s Response to CESR 08-872 The ABI is the voice of the insurance and investment industry. Its members constitute over 90

More information

Seventh Annual MIG seminar: The Impact of MiFID II and EMIR on Commodities Hannah Meakin (Partner) and Cat Blake (Associate) 5 March 2014

Seventh Annual MIG seminar: The Impact of MiFID II and EMIR on Commodities Hannah Meakin (Partner) and Cat Blake (Associate) 5 March 2014 Seventh Annual MIG seminar: The Impact of MiFID II and EMIR on Commodities Hannah Meakin (Partner) and Cat Blake (Associate) 5 March 2014 Overview MiFID II: What are financial instruments? Additions and

More information

MiFID II/MiFIR series

MiFID II/MiFIR series Financial institutions Energy Infrastructure, mining and commodities Transport Technology and innovation Life sciences and healthcare MiFID II/MiFIR series Impact on commodities and commodity derivatives

More information

COMMISSION DELEGATED REGULATION (EU) /... of 10.6.2016

COMMISSION DELEGATED REGULATION (EU) /... of 10.6.2016 EUROPEAN COMMISSION Brussels, 10.6.2016 C(2016) 3446 final COMMISSION DELEGATED REGULATION (EU) /... of 10.6.2016 supplementing Regulation (EU) No 648/2012 of the European Parliament and of the Council

More information

CESR Technical Advice to the European Commission in the Context of the MiFID Review Equity Markets

CESR Technical Advice to the European Commission in the Context of the MiFID Review Equity Markets COMMITTEE OF EUROPEAN SECURITIES REGULATORS Answers provided by Date: April 2010 Ref.: CESR/10-417 Ref.: CESR/10-292 Ref.: CESR/10-394 CONSULTATION PAPER CESR Technical Advice to the European Commission

More information

F R E Q U E N T L Y A S K E D Q U E S T I O N S A B O U T E U R O P E A N S E C U R I T I E S L E G I S L A T I ON

F R E Q U E N T L Y A S K E D Q U E S T I O N S A B O U T E U R O P E A N S E C U R I T I E S L E G I S L A T I ON F R E Q U E N T L Y A S K E D Q U E S T I O N S A B O U T E U R O P E A N S E C U R I T I E S L E G I S L A T I ON Who is affected by European securities legislation? European securities legislation applies

More information

Atlas Capital Financial Services Limited. MT4 Order Execution Policy

Atlas Capital Financial Services Limited. MT4 Order Execution Policy Atlas Capital Financial Services Limited (Regulated by the Cyprus Securities & Exchange Commission) MT4 Order Execution Policy 11th of February 2015 1 P a g e Contents 1. Introduction:...3 2. Scope:...3

More information

ESMA MiFID II / MiFIR Consultation and Discussion Papers General Comments on Market Structure Issues

ESMA MiFID II / MiFIR Consultation and Discussion Papers General Comments on Market Structure Issues 1 August 2014 ESMA MiFID II / MiFIR Consultation and Discussion Papers General Comments on Market Structure Issues Financial markets have changed and technology has evolved meaningfully since 2007 when

More information

by William A. Scott, Stikeman Elliott LLP

by William A. Scott, Stikeman Elliott LLP Recent regulatory developments in the Canadian OTC derivatives market by William A. Scott, Stikeman Elliott LLP As the Canadian federal government seemingly never tires of reminding us, the Canadian financial

More information

A Quick Start Guide to EMIR: What you need to do and when

A Quick Start Guide to EMIR: What you need to do and when Legal Update January 2013 A Quick Start Guide to EMIR: What you need to do and when On 19 December 2012 the Commission adopted the majority of the subordinate legislation necessary to implement Regulation

More information

OTC Derivatives Market Reforms - Focusing on International Discussion-

OTC Derivatives Market Reforms - Focusing on International Discussion- OTC Derivatives Market Reforms - Focusing on International Discussion- June 12, 2015 Shunsuke Shirakawa Financial Services Agency Government of Japan * This presentation represents the presenter s own

More information

Summary of Scotiabank London Best Execution Policy

Summary of Scotiabank London Best Execution Policy 1. Introduction Summary of Scotiabank London Best Execution Policy 1.1 The Bank of va Scotia ( BNS ) is authorised and regulated by the Office of the Superintendent of Financial Institutions in Canada.

More information

Wholesale Market Brokers Association and London Energy Brokers Association. Response to European Commission on MiFID2 Consultation

Wholesale Market Brokers Association and London Energy Brokers Association. Response to European Commission on MiFID2 Consultation Wholesale Market Brokers Association and Response to European Commission on MiFID2 Consultation I. WMBA and LEBA II. Preface III. Key Summary Points IV. Answers to Consultation V. Annex to reference materials:

More information

CESR Consultation Paper Standardisation and exchange trading of OTC derivatives FBF S RESPONSE

CESR Consultation Paper Standardisation and exchange trading of OTC derivatives FBF S RESPONSE 16th August 2010 CESR Consultation Paper Standardisation and exchange trading of OTC derivatives FBF S RESPONSE General remarks: The French Banking Federation (FBF) represents the interests of the banking

More information

CICERO BRIEFING: MONETARY AUTHORITY OF SINGAPORE REVIEWS REGULATION OF THE DERIVATIVES MARKET IN SINGAPORE

CICERO BRIEFING: MONETARY AUTHORITY OF SINGAPORE REVIEWS REGULATION OF THE DERIVATIVES MARKET IN SINGAPORE CICERO BRIEFING: MONETARY AUTHORITY OF SINGAPORE REVIEWS REGULATION OF THE DERIVATIVES MARKET IN SINGAPORE Introduction On February 13 the Monetary Authority of Singapore announced it is conducting a review

More information

EBA s Proposed Definition of Shadow Banking poses Risks to the Real Economy

EBA s Proposed Definition of Shadow Banking poses Risks to the Real Economy EBA s Proposed Definition of Shadow Banking poses Risks to the Real Economy Non-Financial Companies and their In-House Financial Services Companies Must Not Be Regarded as Shadow Banks by Supervisory Authorities

More information

MiFID II: The New Investor Protection Regime

MiFID II: The New Investor Protection Regime May 2014 Overview On 13 May 2014, the Council of the European Union formally endorsed a new regulatory regime that will replace the current Markets in Financial Instruments Directive ( MiFID ), which has

More information

PART I GENERAL. Chapter 1. General provisions. Section 1. General scope of application of the Act

PART I GENERAL. Chapter 1. General provisions. Section 1. General scope of application of the Act 1(49) Unofficial translation Amendments up to 258/2013 included 746/2012 Issued in Helsinki on 14 December 2012 Securities Markets Act Pursuant to the decision of Parliament, the following is enacted:

More information

FinfraG / EMIR. Your partner to navigate the challenges in investment and risk management. Current Status What you need to know. 23 rd September 2014

FinfraG / EMIR. Your partner to navigate the challenges in investment and risk management. Current Status What you need to know. 23 rd September 2014 Your partner to navigate the challenges in investment and risk management. FinfraG / EMIR ROSENWEG 3 GARTENSTRASSE 19 CH-6340 BAAR/ZUG CH-8002 ZURICH SWITZERLAND SWITZERLAND INFO@INCUBEGROUP.COM INCUBEGROUP.COM

More information

Fixed Income TCA. TCA and its use in fixed income reducing cost, bringing transparency and moving towards electronic trading in fixed income

Fixed Income TCA. TCA and its use in fixed income reducing cost, bringing transparency and moving towards electronic trading in fixed income Fixed Income TCA TCA and its use in fixed income reducing cost, bringing transparency and moving towards electronic trading in fixed income Why do Fixed Income TCA? MiFID II hasn t changed best execution

More information

MiFID II/MiFIR. Implications for Fund Managers. May 2014. 2014 Deloitte LLP. All rights reserved.

MiFID II/MiFIR. Implications for Fund Managers. May 2014. 2014 Deloitte LLP. All rights reserved. /MiFIR Implications for Fund Managers May 2014 Webinar participants Manmeet Rana Senior Manager Audit Deloitte UK mrana@deloitte.co.uk +44 20 7303 8624 Manmeet Rana is a Senior Manager within Deloitte

More information