Featured Product

    ESMA on Responses to Consultation on Indices and Exchanges Under CRR

    July 12, 2019

    ESMA published responses to its consultation proposing amendments to the main indices and recognized exchanges under the Capital Requirements Regulation (CRR). The consultation was launched on May 24, 2019 and responses on the consultation were to be submitted by July 05, 2019. ESMA has published responses from the Association for Financial Markets in Europe (AFME), Cboe Europe Limited, and Morgan Stanley Capital International (MSCI). Post finalization of the proposed implementing technical standards that amend Regulation 2016/1646, ESMA will submit a final report to EC for endorsement.

    ESMA considers it necessary to introduce amendments to the Commission Implementing Regulation (EU) 2016/1646 to ensure that the most updated list of main indices and recognized exchanges is incorporated into the legislative text. The Implementing Regulation (EU) 2016/1646 sets the criteria to identify the main indices and recognized exchanges for the purposes of CRR. As there is no legislative procedure, other than amending the implementing technical standard, ESMA had proposed, in May, to update the legislative text to take into account relevant amendments to the list of main indices and recognized exchanges since the publication of the original implementing technical standard. ESMA, to identify the main indices, also proposed to use a new methodology that can be homogeneously applied to EU and non-EU indices. Under this new methodology, an index would qualify as a main index if it passes one of following two tests:

    • The first test aims to capture indices composed predominantly by medium and large cap stocks.
    • The second test ensures that indices composed predominantly of small cap stocks are also eligible to be included in the list of main indices, provided that all components of the index are sufficiently liquid.

     

    Related Links

    Keywords: Europe, EU, Banking, Securities, Regulation 2016/1646, Recognized Exchanges, Implementing Technical Standards, Indices, Responses to Consultation, CRR, ESMA

    Related Articles
    News

    APRA Publishes Approach to Regulating and Supervising GCRA Risks

    APRA published an information paper that sets out a more intensive regulatory approach to transform governance, culture, remuneration, and accountability (GCRA) practices across the prudentially regulated financial sector.

    November 19, 2019 WebPage Regulatory News
    News

    IAIS Publishes Application Paper on Recovery Planning

    IAIS published the final application paper on recovery planning, along with the resolution of comments on the draft application paper.

    November 18, 2019 WebPage Regulatory News
    News

    FSB Publishes Summary of November Meeting of RCG for MENA Region

    FSB published a summary of the November meeting of the Regional Consultative Group (RCG) for Middle East and North Africa (MENA).

    November 17, 2019 WebPage Regulatory News
    News

    EBA Single Rulebook Q&A: Second Update for November 2019

    EBA updated the Single Rulebook question and answer (Q&A) tool with answers to eight questions that relate to the Bank Resolution and Recovery Directive (BRRD) and the Capital Requirements Regulation and Directive (CRR and CRD).

    November 15, 2019 WebPage Regulatory News
    News

    FSI Examines Use of Red Team Testing to Enhance Cyber Resilience

    The Financial Stability Institute (FSI) of BIS published a paper that examines the contribution of red team testing frameworks toward enhancing cyber resilience.

    November 15, 2019 WebPage Regulatory News
    News

    FASB Delays Effective Dates for CECL, Leases, and Hedging Standards

    FASB issued two Accounting Standards Updates finalizing the delays in effective dates for standards on current expected credit losses (CECL), leases, hedging, and long-duration insurance contracts.

    November 15, 2019 WebPage Regulatory News
    News

    ESMA Updates Q&A on Securitization Regulation in November 2019

    ESMA updated questions and answers (Q&A) on the Securitization Regulation (Regulation 2017/2402).

    November 15, 2019 WebPage Regulatory News
    News

    HKMA Announces Finalization of Banking Liquidity Amendment Rules 2019

    HKMA issued a letter informing all authorized institutions that negative vetting of the Banking (Liquidity) (Amendment) Rules 2019 (BLAR) has now expired. Thus, the BLAR will now come into operation from January 01, 2020.

    November 15, 2019 WebPage Regulatory News
    News

    BCBS Consults on Revised Disclosures for Market Risk Framework

    BCBS launched a consultation on the revised disclosure requirements for the market risk framework for banks.

    November 14, 2019 WebPage Regulatory News
    News

    BCBS Consults on Disclosure Templates of Sovereign Exposures of Banks

    BCBS published a consultation on the voluntary disclosure templates related to sovereign exposures of banks.

    November 14, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 4167