CFTC announced the issuance of an order exempting certain derivatives trading facilities (electronic trading platforms, or ETPs) regulated by JFSA from the requirement to register with CFTC as swap execution facilities (SEFs). JFSA also announced that it would facilitate the authorization process of "Authorized Electronic Over-the-Counter (OTC) Derivatives Transactions etc. Business Operators" (Foreign ETP Operators) for CFTC-authorized derivative platforms that seek to be Foreign ETP Operators on the premise that such entities are subject to the regulation and supervision of CFTC.
The Commodity Exchange Act (CEA) section 5h(g) empowers CFTC to grant an exemption from the SEF registration requirement when it determines that a facility is subject to comparable, comprehensive supervision and regulation on a consolidated basis by SEC, a prudential regulator, or the appropriate governmental authorities in the home country of the facility. ETPs that have been granted an exemption from SEF registration under section 5h(g), as listed in the order, may be used by swap counterparties to comply with the trade execution requirement under the CEA section 2(h)(8) and may also be used to trade swaps that are not subject to the trade execution requirement.
Article 60-14 of the Financial Instruments and Exchange Act (No. 25 of 1948) (FIEA) empowers JFSA to permit certain foreign derivatives platforms to qualify as Foreign ETP Operators. Under the Japanese regulatory framework, Foreign ETP Operators shall not be examined on the specific ways they operate as long as their business is operated at levels deemed virtually equal to those required in Japan, given that they are essentially under the supervision of overseas authorities. JFSA will facilitate the authorization process for CFTC-authorized derivatives platforms that seek to be Foreign ETP Operators on the premise that they are subject to the regulation and supervision of the CFTC.
Keywords: Americas, Asia Pacific, US, Japan, Banking, Securities, Swap Execution, Trading Venues, OTC Derivatives, JFSA, CFTC
EBA published phase 2 of the technical package on the reporting framework 2.10, providing the technical tools and specifications for implementation of EBA reporting requirements.
FASB issued a proposed Accounting Standards Update that would grant insurance companies, adversely affected by the COVID-19 pandemic, an additional year to implement the Accounting Standards Update No. 2018-12 on targeted improvements to accounting for long-duration insurance contracts, or LDTI (Topic 944).
APRA updated the regulatory approach for loans subject to repayment deferrals amid the COVID-19 crisis.
BCBS and FSB published a report on supervisory issues associated with benchmark transition.
IAIS published a report on supervisory issues associated with benchmark transition from an insurance perspective.
ESMA updated the reporting manual on the European Single Electronic Format (ESEF).
EBA published a statement on resolution planning in light of the COVID-19 pandemic.
BCBS Finalizes Revisions to Credit Valuation Adjustment Risk Framework
ECB published a guideline (2020/97), in the Official Journal of European Union, on the definition of materiality threshold for credit obligations past due for less significant institutions.
FED temporarily revised the capital assessments and stress testing reports (FR Y-14A/Q/M) to implement the changes in response to the COVID-19 pandemic.