Amendments to the recognition requirements for investment exchanges and clearing houses
|
|
- Cecilia Barton
- 6 years ago
- Views:
Transcription
1 Amendments to the recognition requirements for investment exchanges and clearing houses January 2013
2
3 Amendments to the recognition requirements for investment exchanges and clearing houses January 2013
4 Official versions of this document are printed on 100% recycled paper. When you have finished with it please recycle it again. If using an electronic version of the document, please consider the environment and only print the pages which you need and recycle them when you have finished. Crown copyright 2013 You may re-use this information (not including logos) free of charge in any format or medium, under the terms of the Open Government Licence. To view this licence, visit or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or Any queries regarding this publication should be sent to us at: PU1442
5 Contents Page Chapter 1 Introduction 3 Chapter 2 Proposed changes 5 Chapter 3 Summary 9 1
6
7 1 Introduction 1.1 This paper seeks to gain industry views on two amendments to the Recognition Requirements for Investment Exchanges and Clearing Houses under the Financial Services and Markets Act The first amendment would add a requirement for UK recognised clearing houses providing central counterparty (CCP) services, to have rules and arrangements to allocate uncovered losses amongst members and other related parties. The second amendment would add a requirement for UK recognised clearing houses providing CCP services, to have recovery plans in place. In both instances, these proposals formalise steps already underway by some industry members to manage the risks associated with central clearing; and both complement the existing arrangements already in place to protect against default. The changes would apply only to clearing houses in the UK providing CCP services. Clearing houses based overseas would not be subject to these rules. Background 1.2 Since the financial crisis of , a wide programme of financial sector reform has been underway at a domestic, European and G20 level. The reform has not only focused on banks, but also on investment firms and financial market infrastructure (FMIs) (such as CCPs, central securities depositories (CSDs), and payment systems), which also have the potential to cause major wide-spread disruption to the financial system. The Financial Stability Board (FSB) endorsed by the G20 has recommended that resolution regimes are put in place for all systemically important financial institutions including FMIs. 1.3 In July 2012, the Committee on Payment and Settlement Systems and the International Organisation of Securities Commissions (henceforth CPSS-IOSCO) published a consultative report 1 outlining the features of effective recovery and resolution regimes for FMIs. This was in accordance with the FSB s Key Attributes of Effective Resolution Regimes for Financial Institutions including a consideration of the need for CCPs, and other FMI (that take credit risk) to introduce loss sharing rules, and to have resolution regimes. This built upon the updated Principles for Financial Market Infrastructures published by CPSS-IOSCO in April 2012, which identified a number of measures that FMIs should take to prepare for and facilitate the implementation of their own recovery or orderly wind-down plans In September 2012, the European Commission published its own consultation 3 on recovery and resolution frameworks for non-bank institutions. However, the timetable for implementing any findings from the consultation is uncertain. 1.5 In the UK, the Government has implemented a resolution regime for banks, through the Banking Act In accordance with the recommendations of the FSB, 4 the UK Government has taken additional steps to extend the resolution regime to investment firms and UK 1 CPSS-IOSCO consultative report 2 See paragraph 1.25 of the consultative report: [Section 1.2] 3
8 recognised clearing houses. After an industry-wide consultation 5 over the summer, the Government laid legislation in the Houses of Parliament via amendments to the Financial Service Bill which received Royal Assent on 19 December Financial sector resolution: broadening the regime 4
9 2 Proposed changes Central counterparties 2.1 CCPs play a vital role in the financial system; acting as the seller to every buyer and the buyer to every seller. They seek to reduce counterparty risks in trades; and in doing so facilitate trading activity, provide certainty to market participants, and increase confidence within the market. In the UK, there are only a small number of recognised clearing houses 1 that are central counterparties. However, given their role and significant financial exposure to other market participants their failure could pose significant risks to the operation of the UK financial system, and be a potential source of contagion. 2.2 Furthermore, mandatory clearing obligations for over-the-counter (OTC) contracts under the Regulation on OTC derivatives, central counterparties and trade repositories (commonly known as the European Market Infrastructure Regulation or EMIR ) are expected to result in a significant increase in the volume of trades cleared through CCPs, increasing the risk concentration, and hence their systemic importance. European Market Infrastructure Regulation 2.3 The financial crisis revealed problems in OTC derivatives markets, most notably deficiencies in management of counterparty credit risk raising systemic risk concerns, and a lack of transparency regarding risk concentrations. The G20 committed to tackling this by strengthening financial market infrastructure through improved transparency measures and regulatory oversight of over-the-counter derivatives. 2.4 The EU is taking a large part of this change forward through EMIR. EMIR puts in place stringent regulatory requirements for CCPs including: requirements on the amount of permanent and available capital to be held by a CCP; the minimum required level of collateral a CCP must collect from its members; the forms of collateral that are eligible to be posted by members; requirements to maintain default funds; and rules about investment policies. 2.5 All CCPs providing clearing services in the EU will have to demonstrate how they meet these enhanced regulatory standards as part of their respective applications for authorisation or recognition under EMIR. 2.6 EMIR will bring in a framework for a mandatory clearing obligation for standardised OTC derivatives contracts that will be identified in technical standards. EMIR came into force across Europe on 16 August 2012; however, many of the operative provisions require technical 1 A UK recognised clearing house is a CCP which has been authorised, by the regulator, to operate in the UK 5
10 standards to enter into force before they can be applied. The expectation is that these technical standards will come into force in early From the date that the technical standards enter into force, all CCPs providing clearing services in the EU will have a six month transitional period within which they can continue to operate under the relevant national regime under which they currently provide services. By the end of this six month period, the CCPs must have applied for authorisation or recognition under EMIR. CCPs will continue to be governed by national rules while the authorisation or recognition procedure progresses. 2.7 EMIR also allows Member States to adopt or continue to apply additional requirements to those set out in EMIR in respect of CCPs established in their jurisdiction. 2 The proposed policy changes in this document are intended to fall within the scope of additional requirements. EMIR does not address the need for CCPs to have loss sharing rules, or recovery and resolution plans. UK recognised clearing houses 2.8 UK clearing houses weathered the last financial crisis well. They are governed by robust regulatory arrangements and have in place a number of defences against failure. Members of a clearing house are required to post significant levels of collateral against the value of their or their clients, positions which is pegged to the changing risk of the trade and the markets. Each clearing house also maintains a default fund, contributed to by members, which acts as a buffer against extraordinary losses. The capital a clearing house has in its own reserve may also act as protection. 2.9 These existing funds and reserves are designed to be sufficient to protect a clearing house against most foreseeable financial shocks, such as the default of the one or two largest clearing members. But they are finite. So in certain extreme circumstances, such as the default of several major clearing members, the existing funds and reserves could be exhausted. In the absence of arrangements to allocate such a loss, the clearing house would then be insolvent The insolvency of a clearing house could pose a serious threat to financial stability. Trading could be disrupted in the markets that the clearing house clears, and clearing members might not be able to access their collateral and default fund contributions for some time. These risks are growing in importance as clearing houses become more systemically significant following the G20 mandate for all standardised OTC derivatives to be centrally cleared Given the systemic significance of clearing houses, the UK authorities think it essential that arrangements are in place to guard against more extreme shocks. Clearing houses have, in most cases, begun the process of putting loss allocation rules in place to allow for circumstances where losses exceed existing resources. The Government thinks that such rules need to be in place for all clearing house products This is consistent with the international Principles for Financial Market Infrastructures developed by CPSS-IOSCO. 3 The Bank of England s Financial Policy Committee has also encouraged the development of loss-allocation rules Therefore, the Government is proposing to make a change to the recognition requirements for UK recognised clearing houses providing CCP services, through secondary legislation. 5 This 2 Under recital (50) of EMIR and Article 14(5) it is made clear that the requirements set out in EMIR do not prevent Member States from adopting or apply additional requirements to CCPs in their jurisdiction. 3 Principle 4 (key consideration 7): an infrastructure s rules and procedures should address how potentially uncovered credit losses would be allocated [and] should also indicate the FMI s process to replenish any financial resources that the FMI may employ during a stress event, so that the FMI can continue to operate in a safe and sound manner. 4 Bank of England Financial Stability Report, December 2011, page 53. The FPC welcomed ongoing work to ensure that UK CCPs have robust arrangements to manage potential losses, which should include rules for allocating amongst their participants, and therefore absorbing losses that are not covered by margin, default fund and other financial resources. 6
11 change would be in addition to those under EMIR. It would sit alongside the EMIR regulations and would stipulate that a UK recognised clearing house providing CCP services must have rules and arrangements in place which allocate losses that arise as a result of member default or otherwise, and which are in excess of the CCP s available resources to cover such losses. These rules would be expected to reinforce existing arrangements (posting of initial margin and other collateral, default fund contributions, capital) for managing financial shocks to the CCPs, and, therefore, prevent failure and to be able to ensure service continuity The UK authorities believe that such rules would significantly reduce the likelihood of a clearing house failing in a way that would constitute a threat to wider financial stability or potentially put public finances at risk through a resolution Complementing this change, and to aid recovery and resolution planning, the Government intends also to make a change to the recognition requirements so as to stipulate that a UK recognised clearing house providing CCP services must have a recovery plan in place. This is analogous to the requirement under Financial Services Act 2010 for banks to maintain recover and resolution plans. The Government believes this is an issue the CCPs are likely to have given some thought to given that the CPSS-IOSCO Principles for Financial Market Infrastructures state that an FMI should prepare appropriate plans for its recovery or orderly wind-down (Principle 3 Key Consideration 4). 6 It is also consistent with the objectives of the EMIR draft technical standards submitted by the European Securities and Markets Authority (ESMA) and the European Banking Authority (EBA) Robust recovery plans enhance a company s resilience to a shock by improving its ability to deal with an adverse set of consequences if they arise Information and analysis from a UK recognised clearing house which facilitates resolution planning by the Authorities, is clearly a pre-requisite for effective use by the Authorities of the resolution regime for UK recognised clearing house s contained in the Financial Services Bill. We are of the view that this information and analysis may be obtained by the Authorities from the UK recognised clearing house under existing UK recognised clearing house recognition requirements and FSA rules The Government recognises and welcomes the good practice already underway in the sector on recovery and resolution planning and therefore, see these changes as building on and formalising that good practice The proposed text of these requirements is as follows: A central counterparty must have in place within six months of these Regulations coming into force (a) rules to allocate losses that arise as a result of member default that remain after the resources to which the central counterparty has access (pursuant to paragraph 16 [of this schedule] or Article 45 of the OTC derivatives, central counterparties and trade repositories regulation, as relevant at the time) are exhausted; and (b) effective arrangements (which may include rules) to allocate losses that arise otherwise than as a result of member default; such that these rules and arrangements ensure that the central counterparty may, consistent with its statutory obligations (including, where 5 As part of the new EMIR authorisation process 6 The plan should contain, among other elements, a substantive summary of the key recovery or orderly wind-down strategies, the identification of the FMI s critical operations and services, and a description of the measures needed to implement the key strategies. An FMI should have the capacity to identify and provide to related entities the information needed to implement the plan on a timely basis during stress scenarios. [Paragraph of the Principles]. 7
12 relevant, the OTC derivatives, central counterparties and trade repositories regulation), allocate losses capable of threatening its financial viability, with a view to the central counterparty being able to continue to provide clearing services. A central counterparty must have in place a recovery plan that sets out the steps that it will take with a view to maintaining continuity of clearing services in the event that such continuity is threatened. Question 1: Is the intended wording of this requirement clear? Question 2: Are there any unforeseen consequences in amending the recognition requirements in this way? Question 3: Does the proposed requirement complement the draft EMIR Regulatory Technical Standards? Transition period 2.20 It is important that the transition to these new recognition requirements does not present a risk to market stability nor places a significant administrative burden on industry. The Government understands that these changes would have to be phased in to give industry time to make the necessary changes and put in place the loss allocation mechanisms. For loss allocation rules, we intend to allow a transition period of six months from the time the legislation came into force. For recovery planning, the timetable would be the same. Question 4: Are these transitional periods reasonable? 2.21 It is likely that by the time the proposed change to recognition requirements takes effect, responsibility for the supervision of recognised clearing houses will have passed from the FSA to the Bank of England. The Bank will expect UK recognised clearing houses providing CCP services to be guided by the CPSS-IOSCO publications and by the Key Attributes in meeting the requirement and will engage directly with the UK recognised clearing houses about the design of the relevant rules and arrangements and in respect of the preparation of the recovery plan. Question 5: What, if any, further information do you require to implement these requirements? 8
13 3 Summary 3.1 The Government is of the view that a change to the recognition requirements, which ensures UK recognised clearing houses that provide CCP services in the UK, have adequate loss allocation rules in place and robust recovery and resolution plans, significantly reduces the risk of using a resolution regime to restore a failing clearing house to viable health. Therefore, an amendment to the recognition requirements which provides for these would significantly reduce the likelihood of a UK recognised clearing house entering into a resolution regime. List of consultation questions Question 1: Is the intended wording of this requirement clear? Question 2: Are there any unforeseen consequences in amending the recognition requirements in this way? Question 3: Does the proposed requirement complement the draft EMIR Regulatory Technical Standards? Question 4: Are these transitional periods reasonable? Question 5: What, if any, further information do you require to implement these requirements? 9
14
15 HM Treasury contacts If you require this information in another language, format or have general enquiries about HM Treasury and its work, contact: Correspondence Team HM Treasury 1 Horse Guards Road London SW1A 2HQ Tel: public.enquiries@hm-treasury.gov.uk
Tax framework for business
Tax framework for business March 2010 Tax framework for business March 2010 4 Tax framework for business Introduction A stable, sustainable and competitive business tax system is critical to ensure businesses
More informationMajor Project Authority Integrated Assurance
Major Project Authority Integrated Assurance March 2012 Major Project Authority Integrated Assurance March 2012 Official versions of this document are printed on 100% recycled paper. When you have finished
More informationCommittee on Economic and Monetary Affairs. on recovery and resolution framework for non-bank institutions (2013/2047(INI))
EUROPEAN PARLIAMT 2009-2014 Committee on Economic and Monetary Affairs 18.6.2013 2013/2047(INI) DRAFT REPORT on recovery and resolution framework for non-bank institutions (2013/2047(INI)) Committee on
More information3. In accordance with Article 14(5) of the Rules of procedure of the EBA, the Board of Supervisors has adopted this opinion.
EBA BS 2012 266 21 December 2012 Opinion of the European Banking Authority on the European Commission s consultation on a possible framework for the recovery and resolution of financial institutions other
More informationCommittee on Payments and Market Infrastructures. Board of the International Organization of Securities Commissions
Committee on Payments and Market Infrastructures Board of the International Organization of Securities Commissions Recovery of financial market infrastructures October 2014 (Revised July 2017) This publication
More informationCommission proposal on improving securities settlement in the EU and on Central Securities Depositaries Frequently Asked Questions
MEMO/12/163 Brussels, 7 March 2012 Commission proposal on improving securities settlement in the EU and on Central Securities Depositaries Frequently Asked Questions 1. What does the proposed regulation
More informationNational Payment System Department
National Payment System Department Bank s support for the Principles for Financial Market Infrastructures published by the Committee on Payment and Settlement Systems and the Technical Committee of the
More informationEUROPEAN COMMISSION S PUBLIC CONSULTATION ON DERIVATIVES AND MARKET INFRASTRUCTURES
EUROPEAN COMMISSION S PUBLIC CONSULTATION ON DERIVATIVES AND MARKET INFRASTRUCTURES EUROSYSTEM CONTRIBUTION 1 INTRODUCTION With a view to meeting the G20 s commitment to promote resilience and transparency
More informationConsultative report. Committee on Payment and Settlement Systems. Board of the International Organization of Securities Commissions
Committee on Payment and Settlement Systems Board of the International Organization of Securities Commissions Consultative report Recovery of financial market infrastructures August 2013 This publication
More informationESRB response to ESMA on the temporary exclusion of exchange-traded derivatives from Articles 35 and 36 of MiFIR
09 February 2016 ESRB response to ESMA on the temporary exclusion of exchange-traded derivatives from Articles 35 and 36 of MiFIR 1. Introduction Pursuant to Article 52(12) of the Markets in Financial
More information¼ããÀ ããè¾ã ¹ãÆãä ã¼ãîãä ã ããõà ãäìããä ã½ã¾ã ºããñ Ã
CIRCULAR CIR/MRD/DRMNP/26/2013 September 04, 2013 To All Clearing Corporations and Depositories. Sir / Madam, Sub: Principles of Financial Market Infrastructures (PFMIs) Background 1. To promote and sustain
More informationGuidelines CSD participants default rules and procedures
Guidelines CSD participants default rules and procedures 08/06/2017 ESMA70-151-294 Table of Contents 1 Scope... 3 2 Definitions... 4 3 Purpose... 5 4 Compliance and reporting obligations... 6 4.1 Status
More informationFinancial relationship between HM Treasury and the Bank of England: memorandum of understanding
Financial relationship between HM Treasury and the Bank of England: memorandum of understanding June 2018 Financial relationship between HM Treasury and the Bank of England: memorandum of understanding
More informationFinal report Technical advice on third country regulatory equivalence under EMIR Hong Kong
Final report Technical advice on third country regulatory equivalence under EMIR Hong Kong 1 September 2013 ESMA/2013/1160 Date:1 September 2013 ESMA/2013/BS/1160 Table of Contents Table of contents 2
More informationBail-in powers implementation: summary of responses
Bail-in powers implementation: summary of responses December 2014 Bail-in powers implementation: summary of responses December 2014 Crown copyright 2014 This publication is licensed under the terms of
More informationFinal report Technical advice on third country regulatory equivalence under EMIR Singapore
Final report Technical advice on third country regulatory equivalence under EMIR Singapore 1 September 2013 ESMA/2013/1161 Date: 1 September 2013 ESMA/2013/1161 Table of content Section I... 4 Executive
More informationFinancial Policy Committee Statement from its policy meeting, 12 March 2018
Press Office Threadneedle Street London EC2R 8AH T 020 7601 4411 F 020 7601 5460 press@bankofengland.co.uk www.bankofengland.co.uk 16 March 2018 Financial Policy Committee Statement from its policy meeting,
More informationEuropean Banking Authority Tower Old Broad Street London EC2N 1HQ United Kingdom. 2 April 2012
UBS AG P.O. Box 8098 Zürich Public Policy EMEA Group Governmental Affairs Dr. Gabriele C. Holstein Bahnhofstrasse 45 P.O. Box 8098 Zürich Tel. +41-44-234 44 86 Fax +41-44-234 32 45 gabriele.holstein@ubs.com
More informationRegulation and Supervision of Systemically Important Financial Market Infrastructures
Regulation and Supervision of Systemically Important Financial Market Infrastructures Sylvie Mathérat Deputy General Director - Operations Banque de France PLAN I. Systemic Infrastructures II. FMI regulation
More informationAre CCPs the new Too Big To Fail?
Are CCPs the new Too Big To Fail? RiskMinds International Main Conference Amsterdam, 6th December 2017 David Blache, Deputy Director for Resolution, ACPR (Resolution Authority, France) 1 Introduction:
More informationEMIR : Regulation on OTC derivatives, Central Counterparties and Trade Repositories
EMIR : Regulation on OTC derivatives, Central Counterparties and Trade Repositories Contents EMIR : Regulation on OTC derivatives, Central Counterparties and Trade Repositories Background Page 2 Scope
More informationOfficial Journal of the European Union
10.3.2017 L 65/9 COMMISSION DELEGATED REGULATION (EU) 2017/390 of 11 November 2016 supplementing Regulation (EU) No 909/2014 of the European Parliament and of the Council with regard to regulatory technical
More informationJune 15, Via
Gerard B.J. Hartsink Executive Chairman CLS Bank International 32 Old Slip, 23rd Floor New York, NY 10005 Tel: +1 (212) 943-2506 Fax: +1 (212) 363-6998 ghartsink@cls-bank.com June 15, 2012 Via E-mail Secretariat
More informationThe Bank of Japan Policy on Oversight of Financial Market Infrastructures
The Bank of Japan Policy on Oversight of Financial Market Infrastructures March 2013 Bank of Japan This is an English translation of the Japanese original published on March 12, 2013. Contents I. Introduction
More informationCOMMISSION DELEGATED REGULATION (EU) No /.. of
EUROPEAN COMMISSION Brussels, 11.11.2016 C(2016) 7158 final COMMISSION DELEGATED REGULATION (EU) No /.. of 11.11.2016 supplementing Regulation (EU) No 909/2014 of the European Parliament and of the Council
More informationESMA CONTRIBUTION TO THE EBA S DRAFT REGULATORY TECHNICAL STANDARDS ON CAPITAL REQUIREMENTS FOR CCPs
Date: 8 August 2012 ESMA/2012/516 Annex 1 ESMA CONTRIBUTION TO THE EBA S DRAFT REGULATORY TECHNICAL STANDARDS ON CAPITAL REQUIREMENTS FOR CCPs General comments 1. ESMA considers that it is particularly
More informationQUESTIONS AND ANSWERS (Q&A) on ESMA s EU-wide stress tests for CCPs
Date: 29 April 2016 ESMA/2016/665 QUESTIONS AND ANSWERS (Q&A) on ESMA s EU-wide stress tests for CCPs The European Securities and Markets Authority (ESMA) has published today the results of its first EU-wide
More informationCharter for Budget Responsibility: autumn 2016 update
Charter for Budget Responsibility: autumn 2016 update January 2017 Charter laid before both Houses of Parliament for approval of the House of Commons Charter for Budget Responsibility: autumn 2016 update
More informationThe Bank of England s oversight of interbank payment systems under the Banking Act September 2009
The Bank of England s oversight of interbank payment systems under the Banking Act 2009 September 2009 Oversight of interbank payment systems under the Banking Act 2009 1 The Bank of England s oversight
More informationASSESSMENT OF VP SECURITIES
ASSESSMENT OF VP SECURITIES SUMMARY The Danish system for safekeeping and settlement of securities is safe and efficient. That is the main conclusion of the assessment of VP Securities A/S, VP, performed
More informationFinal report Technical advice on third country regulatory equivalence under EMIR South Korea
Final report Technical advice on third country regulatory equivalence under EMIR South Korea 01 October 2013 ESMA/2013/1371 Date: 01 October 2013 ESMA/2013/1371 Table of Contents Table of contents 2 Section
More informationSCOPE AND APPLICATION
ANNEX 2 LIMITS ON EXPOSURES TO SHADOW BANKING ENTITIES WHICH CARRY OUT BANKING ACTIVITIES OUTSIDE A REGULATED FRAMEWORK UNDER ARTICLE 395(2) OF REGULATION (EU) NO 575/2013 INTRODUCTION 1. Annex 2 to BR/09
More informationBERMUDA MONETARY AUTHORITY
BERMUDA MONETARY AUTHORITY CONSULTATION PAPER IMPLEMENTATION OF BASEL III NOVEMBER 2013 Table of Contents I. ABBREVIATIONS... 3 II. INTRODUCTION... 4 III. BACKGROUND... 6 IV. REVISED CAPITAL FRAMEWORK...
More informationCOMMISSION IMPLEMENTING DECISION. of XXX
EUROPEAN COMMISSION Brussels, XXX [ ](2014) XXX draft COMMISSION IMPLEMENTING DECISION of XXX on the equivalence of the regulatory framework of Hong Kong for central counterparties to the requirements
More informationThe CPSS-IOSCO Principles for Financial Market Infrastructures
The CPSS-IOSCO Principles for Financial Market Infrastructures Daniela Russo Director General Payments and Market Infrastructure European Central Bank Kuwait, 28 November 2012 Table of Content 1. The Principles:
More informationEurex Clearing. Response. Joint CFTC SEC request for comment on international swap and clearinghouse regulation
Eurex Clearing Response to Joint CFTC SEC request for comment on international swap and clearinghouse regulation CFTC Release No. Frankfurt am Main, 26 September 2011 Eurex Clearing AG wishes to thank
More informationEBA FINAL draft Regulatory Technical Standards
EBA/Draft/RTS/2012/01 26 September 2012 EBA FINAL draft Regulatory Technical Standards on Capital Requirements for Central Counterparties under Regulation (EU) No 648/2012 EBA FINAL draft Regulatory Technical
More informationThe Bank of England s supervision of financial market infrastructures Annual Report. March 2014
The Bank of England s supervision of financial market infrastructures Annual Report March 2014 The Bank of England s supervision of financial market infrastructures Annual Report March 2014 To cover the
More informationFinancial markets today are a global game between a variety of highly interconnected players. Financial regulation sets out the rules of this game.
30 November 2017 ESMA71-319-65 Keynote Address ASIFMA Annual Conference 2017 Hong Kong Verena Ross Executive Director Ladies and gentlemen, I am very pleased to be with you today and to have been invited
More informationEACH response to the FSB Guidance on Central Counterparty resolution and resolution planning
EACH response to the FSB Guidance on Central Counterparty resolution and resolution planning March 2017 0. Introduction... 3 1. Objectives of CCP resolution and resolution planning... 3 2. Resolution authority
More informationLSEG Response to European Commission consultation on the Regulation (EU) No 648/2012 on OTC derivatives, central counterparties and trade repositories
LSEG Response to European Commission consultation on the Regulation (EU) No 648/2012 on OTC derivatives, central counterparties and trade repositories INTRODUCTION London Stock Exchange Group (LSEG) is
More informationBank of England Settlement Accounts
Bank of England Settlement Accounts July 2017 Contents Foreword 3 1. Payment systems and the role of the central bank 4 Payment systems 4 Settlement in central bank money 4 Intraday liquidity 4 Use of
More informationGuidelines on the application of the CPMI-IOSCO Principles for Financial Market Infrastructures
G.N. 2915 Guidelines on the application of the CPMI-IOSCO Principles for Financial Market Infrastructures May 2016 (Updated) Table of contents 1. Introduction 1 2. International Standards for Financial
More informationestablishing a Resolution Regime for Canada s Financial Market Infrastructures
BANK OF CANADA Financial System Review JUNE 2018 25 Establishing a Resolution Regime for Canada s Financial Market Infrastructures Elizabeth Woodman, Lucia Chung and Nikil Chande The continuous operation
More informationFinancial Regulation Strategy HM Treasury 1 Horse Guards Road London SW1A 2HQ. 14 April 2011.
Financial Regulation Strategy HM Treasury 1 Horse Guards Road London SW1A 2HQ Financial.reform@hmtreasury.gsi.gov.uk 14 April 2011 Dear Sirs, CME Group Inc. (CME Group) appreciates the opportunity to comment
More informationGUIDELINES ON FINANCIAL MARKET INFRASTRUCTURES SC-GL/1-2017
GUIDELINES ON FINANCIAL MARKET INFRASTRUCTURES SC-GL/1-2017 Issued: 23 March 2017 GUIDELINES ON FINANCIAL MARKET INFRASTRUCTURES Effective on 1 st Issuance 23 March 2017 CONTENTS CHAPTER 1 PAGE INTRODUCTION
More informationa central counterparty, the registration and supervision of trade repositories and the requirements for trade repositories
C 385/10 EN Official Journal of the European Union 15.11.2017 OPINION OF THE EUROPEAN CENTRAL BANK of 11 October 2017 on a proposal for a regulation of the European Parliament and of the Council amending
More informationThe Rt Hon Philip Hammond MP Chancellor of the Exchequer HM Treasury 1 Horse Guards Road London SW1A2HQ 5 December 2018
Mark Carney Governor The Rt Hon Philip Hammond MP Chancellor of the Exchequer HM Treasury 1 Horse Guards Road London SW1A2HQ 5 December 2018 In my role as Chair of the Financial Policy Committee (FPC),
More informationCentral counterparties in evolving capital markets: safety, recovery and resolution
Central counterparties in evolving capital markets: safety, recovery and resolution Deputy Governor, Financial Stability, Bank of England Chairman, Basel Committee on Payment and Settlement Systems (CPSS)
More informationQUESTIONS AND ANSWERS (Q&A) ESMA CCP STRESS TEST
Date: 02 February 2018 ESMA70-151-1179 QUESTIONS AND ANSWERS (Q&A) ESMA CCP STRESS TEST The European Securities and Markets Authority (ESMA) has published today the results of its second EU-wide stress
More informationEuro area financial regulation: where do we stand?
Euro area financial regulation: where do we stand? Benoît Cœuré Member of the Executive Board European Central Bank Paris, 18 January 2013 1 Euro area banking sector - What has been done? 2 Large amounts
More informationResolution of Systemically Important. Financial Institutions. Progress Report
Resolution of Systemically Important Financial Institutions Progress Report November 2012 i ii Table of Contents Summary... 1 Introduction... 3 1. Implementation of the Key Attributes... 4 1.1 Overview...
More informationFinal Report. Amendments to the EMIR Clearing Obligation under the Securitisation Regulation. 12 December 2018 JC
Final Report Amendments to the EMIR Clearing Obligation under the Securitisation Regulation 12 December 2018 JC 2018 76 Date: 12 December 2018 JC 2018 76 Table of Contents Introduction 5 1. The clearing
More informationProgress of Financial Regulatory Reforms
THE CHAIRMAN 9 November 2010 To G20 Leaders Progress of Financial Regulatory Reforms The Seoul Summit will mark the delivery of two central elements of the reform programme launched in Washington to create
More informationThe CPSS-IOSCO Principles for Financial Market Infrastructure Andreas Schönenberger
The CPSS-IOSCO Principles for Financial Market Infrastructure Andreas Schönenberger FED-IMF-WB conference Washington, 6 June 2012 1. Background: OTC derivatives reforms 2. Overview of (some) new requirements
More informationOverview of the impact of Spending Review 2010 on equalities
Overview of the impact of Spending Review 2010 on equalities October 2010 Overview of the impact of Spending Review 2010 on equalities October 2010 Official versions of this document are printed on 100%
More informationFINANCIAL SECTOR ASSESSMENT PROGRAM REFORMS IN THE OTC DERIVATIVES MARKET TECHNICAL NOTE
March 2015 SOUTH AFRICA FINANCIAL SECTOR ASSESSMENT PROGRAM IMF Country Report No. 15/52 REFORMS IN THE OTC DERIVATIVES MARKET TECHNICAL NOTE This Technical Note on the Reforms in the OTC Derivatives Market
More informationCouncil of the European Union Brussels, 27 November 2017 (OR. en)
Conseil UE Council of the European Union Brussels, 27 November 2017 (OR. en) Interinstitutional File: 2016/0362 (COD) 14894/17 LIMITE PUBLIC EF 305 ECOFIN 1032 CODEC 1911 DRS 77 NOTE From: To: Subject:
More informationEACH response to the ESMA discussion paper Draft RTS and ITS under the Securities Financing Transaction Regulation
EACH response to the ESMA discussion paper Draft RTS and ITS under the Securities Financing Transaction Regulation April 2016 1. Introduction...3 2. Responses to specific questions...5 2 1. Introduction
More information- To promote transparency of derivative data for both regulators and market participants
5 August 2012 Broadgate West One Snowden Street London EC2A 2DQ United Kingdom European Securities and Markets Authority Via electronic submission DTCC Data Repository Limited responses to ESMA s Consultation
More informationBrexit CCP Location and Legal Uncertainty
August 2017 Brexit CCP Location and Legal Uncertainty The UK s withdrawal from the European Union (EU), set for March 2019, is now little more than 18 months away. Negotiations between the UK government
More informationJSE CLEAR. IOSCO Disclosure Document. 11 April 2017
JSE CLEAR IOSCO Disclosure Document 11 April 2017 JSE Clear (Pty) Ltd Reg No: 1987/002294/07 Member of CCP12 The Global Association of Central Counterparties Page 1 of 22 TABLE OF CONTENTS 1. Executive
More informationFinal Report. Clearing Obligation under EMIR (no. 6) 27 September 2018 ESMA
Final Report Clearing Obligation under EMIR (no. 6) 27 September 2018 ESMA70-151-1768 Table of Contents Introduction 5 1 Current temporary exemption 7 2 Proposed amendment 8 3 Further considerations 9
More informationProgress of Financial Regulatory Reforms
THE CHAIRMAN 16 April 2012 To G20 Finance Ministers and Central Bank Governors Progress of Financial Regulatory Reforms I am pleased to report that solid progress is being made in the priority areas identified
More informationSupervisory Statement SS8/16 Ring-fenced bodies (RFBs) December (Updating February 2017)
Supervisory Statement SS8/16 Ring-fenced bodies (RFBs) December 2017 (Updating February 2017) Prudential Regulation Authority 20 Moorgate London EC2R 6DA Prudential Regulation Authority, registered office:
More informationPayments Systems Paper
Payments Systems Paper on Adoption of Committee on Payment and Settlement Systems (CPSS) and International Organization of Securities Commissions (IOSCO) Principles for Financial Market Infrastructures
More informationESRB RESPONSE TO ESMA CONSULTATION PAPER ON MANDATORY CENTRAL CLEARING FOR FOREIGN-EXCHANGE NON-DELIVERABLE FORWARD OTC DERIVATIVES
6 November 2014 ESRB RESPONSE TO ESMA CONSULTATION PAPER ON MANDATORY CENTRAL CLEARING FOR FOREIGN-EXCHANGE NON-DELIVERABLE FORWARD OTC DERIVATIVES 1. Introduction Article 5(2) of the European Market Infrastructure
More informationThe distinct nature of insurance business and the introduction of a specific insurance objective;
Financial Regulation Strategy HM Treasury 1 Horse Guards Road London SW1A 2HQ Via Email: financial.reform@hmtreasury.gsi.gov.uk 8 September 2011 Dear Sirs A new approach to financial regulation: the blueprint
More informationCOUNTERPARTY CLEARING SYSTEM IN EUROPE
TR É S O R I S K C O N S E I L COUNTERPARTY CLEARING SYSTEM IN EUROPE IAFEI MANILA OCT 2014 NEW REQUIREMENTS GENERAL CONCEPT FOR ALL INSTITUTIONS The new regulation comes into force during 2013 and 2014.
More informationDisclosure framework for financial market infrastructures
Committee on Payment and Settlement Systems Technical Committee of the International Organization of Securities Commissions Disclosure framework for financial market infrastructures Consultative report
More informationConsultation Paper Review of Article 26 of RTS No 153/2013 with respect to MPOR for client accounts
Consultation Paper Review of Article 26 of RTS No 153/2013 with respect to MPOR for client accounts 14 December 2015 ESMA/2015/1867 Date: 14 December 2015 ESMA/2015/1867 Responding to this paper The European
More informationProposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL
EUROPEAN COMMISSION Brussels, XXX COM(2012) 73/2 2012/0029 (COD) Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on improving securities settlement in the European Union and on
More informationCCP RISK MANAGEMENT RECOVERY AND RESOLUTION ALIGNING CCP AND MEMBER INCENTIVES
CCP RISK MANAGEMENT RECOVERY AND RESOLUTION ALIGNING CCP AND MEMBER INCENTIVES INTRODUCTION The 2008 financial crisis and the lack of regulatory visibility over bilateral counterparty risk which this episode
More informationNational Securities Depository Limited Principles for Financial Market Infrastructure Disclosure
National Securities Depository Limited Principles for Financial Market Infrastructure Disclosure Page 1 of 38 Table of Contents I. Executive Summary... 3 II. Summary of Major Changes since the Last Update
More information12618/17 OM/vc 1 DGG 1B
Council of the European Union Brussels, 28 September 2017 (OR. en) Interinstitutional File: 2017/0090 (COD) 12618/17 EF 213 ECOFIN 760 CODEC 1471 NOTE From: To: Subject: Presidency Delegations Proposal
More informationALFI comments. European Securities and Market Authority (ESMA)
ALFI comments on European Securities and Market Authority (ESMA) Consultation PAPER Draft Technical Standards for the Regulation on OTC Derivatives, CCPs and Trade Repositories 25 June 2012/ESMA/2012/379
More informationA. Introduction. (International) Central Securities Depository
Deutsche Börse Group Position Paper on EBA Consultation Paper Page 1 of 11 A. Introduction Deutsche Börse Group (DBG) welcomes the opportunity to comment on EBA s Consultation Paper Interim Report on MREL
More informationInter-Agency Work. IOSCO work with the Bank for International Settlements. BCBS-IOSCO Working Group on Margining Requirements (WGMR)
Inter-Agency Work IOSCO work with the Bank for International Settlements BCBS-IOSCO Working Group on Margining Requirements (WGMR) In 2011, the G20 Leaders called upon the Basel Committee on Banking Supervision
More informationSupervisory Statement SS8/16 Ring-fenced bodies (RFBs)
Supervisory Statement SS8/16 Ring-fenced bodies (RFBs) July 2016 Prudential Regulation Authority 20 Moorgate London EC2R 6DA Prudential Regulation Authority, registered office: 8 Lothbury, London EC2R
More informationDANMARKS NATIONALBANK ASSESSMENT OF KRONOS
DANMARKS NATIONALBANK ASSESSMENT OF KRONOS DANMARKS NATIONALBANK ASSESSMENT OF KRONOS ASSESSMENT OF KRONOS Text may be copied from this publication cost-free provided that Danmarks Nationalbank is specifically
More informationEMIR (European Market Infrastructure Regulation): points for attention
EMIR (European Market Infrastructure Regulation): points for attention For whom are the points for attention intended? The points for attention are intended for: 1) banks, pension funds and insurers that
More informationEssential Aspects of CCP Resolution Planning. Discussion Note
Essential Aspects of CCP Resolution Planning Discussion Note 16 August 2016 Contacting the Financial Stability Board Sign up for email alerts: www.fsb.org/emailalert Follow the FSB on Twitter: @FinStbBoard
More informationConsultation Paper. Amendments to the EMIR Clearing Obligation under the Securitisation Regulation. 04 May 2018 JC
Consultation Paper Amendments to the EMIR Clearing Obligation under the Securitisation Regulation 04 May 2018 JC 2018 14 Date: 04 May 2018 JC 2018 14 Responding to this paper The European Supervisory Authorities
More information***I DRAFT REPORT. EN United in diversity EN. European Parliament 2016/0365(COD)
European Parliament 2014-2019 Committee on Economic and Monetary Affairs 2016/0365(COD) 25.9.2017 ***I DRAFT REPORT on the proposal for a regulation of the European Parliament and of the Council on a framework
More informationFinancing growth in innovative firms: Enterprise Investment Scheme knowledge-intensive fund consultation
Financing growth in innovative firms: Enterprise Investment Scheme knowledge-intensive fund consultation March 2018 Financing growth in innovative firms: Enterprise Investment Scheme knowledge-intensive
More informationCOMMISSION OF THE EUROPEAN COMMUNITIES
EN EN EN COMMISSION OF THE EUROPEAN COMMUNITIES Brussels, COM(2009) 563/4 PROVISIONAL VERSION MAY STILL BE SUBJECT TO CHANGE COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE
More informationOfficial Journal of the European Union. (Non-legislative acts) REGULATIONS
3.9.2016 L 237/1 II (Non-legislative acts) REGULATIONS COMMISSION DELEGATED REGULATION (EU) 2016/1450 of 23 May 2016 supplementing Directive 2014/59/EU of the European Parliament and of the Council with
More informationECB-PUBLIC OPINION OF THE EUROPEAN CENTRAL BANK. of 27 November 2012
EN ECB-PUBLIC OPINION OF THE EUROPEAN CENTRAL BANK of 27 November 2012 on various draft regulatory and implementing technical standards submitted by the European Securities and Markets Authority to the
More informationTreasury Minutes. Government response to the Committee of Public Accounts on the First report from Session
Treasury Minutes Government response to the Committee of Public Accounts on the First report from Session 2017-19 Cm 9549 December 2017 Treasury Minutes Government response to the Committee of Public Accounts
More informationFeedback Statement Consultation on the Clearing Obligation for Non-Deliverable Forwards
Feedback Statement Consultation on the Clearing Obligation for Non-Deliverable Forwards 4 February 2015 2015/ESMA/234 Table of Contents 1 Executive Summary... 2 2 Background... 3 3 Results of the consultation...
More informationFinal Draft Regulatory Technical Standards
JC 2018 77 12 December 2018 Final Draft Regulatory Technical Standards Amending Delegated Regulation (EU) 2016/2251 on risk-mitigation techniques for OTC derivative contracts not cleared by a central counterparty
More informationClearing the way towards an OTC derivatives union
Date: 22 September 2015 ESMA/2015/1417 Clearing the way towards an OTC derivatives union 2015 ISDA Annual Europe Conference Ladies and gentlemen, It is good to be back at a major ISDA event and I am delighted
More informationCOMMISSION IMPLEMENTING DECISION (EU) / of XXX
EUROPEAN COMMISSION Brussels, XXX [ ](2017) XXX draft COMMISSION IMPLEMENTING DECISION (EU) / of XXX on the recognition of the legal, supervisory and enforcement arrangements of the United States of America
More informationProposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL
EUROPEAN COMMISSION Brussels, 23.11.2016 COM(2016) 851 final 2016/0361 (COD) Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Regulation (EU) No 806/2014 as regards loss-absorbing
More informationTaiwan Depository & Clearing Corporation. Disclosure Report (SSS)
Taiwan Depository & Clearing Corporation Principles for Financial Market Infrastructure Disclosure Report (SSS) (For Emerging Stocks traded over the Emerging Stock Market and Bonds traded over the counter)
More informationTo G20 Finance Ministers and Central Bank Governors
THE CHAIRMAN 10 March 2017 To G20 Finance Ministers and Central Bank Governors Achieving the G20 s objective of strong, sustainable and balanced growth requires open markets, durable international capital
More informationCentral counterparties and systemic risk
Issue No: 6 Lieven Hermans, Peter McGoldrick and Heiko Schmiedel *+ Following the commitments made by G20 leaders at the Pittsburgh summit to have standardised derivatives contracts centrally cleared,
More informationInternational Monetary and Financial Committee
International Monetary and Financial Committee Twenty-Eighth Meeting October 12, 2013 Statement by Mark Carney, Chairman, Financial Stability Board On behalf of the Financial Stability Board Statement
More informationDerivatives Markets Frequently Asked Questions (see IP/09/1546)
MEMO/09/465 Brussels, 20 th October 2009 Derivatives Markets Frequently Asked Questions (see IP/09/1546) GENERAL APPROACH You propose a comprehensive solution for all derivatives markets. Does that not
More informationMemorandum of Understanding between Office for Budget Responsibility, HM Treasury, Department for Work and Pensions and HM Revenue & Customs
Memorandum of Understanding between Office for Budget Responsibility, HM Treasury, Department for Work and Pensions and HM Revenue & Customs April 2011 Memorandum of Understanding between the Office for
More information