ESMA on Responses to Consultation on Indices and Exchanges Under CRR
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
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.