ESMA Updates Q&As on EMIR and MiFID/MiFIR
ESMA updated question and answer (Q&A) documents on the European Markets Infrastructure Regulation (EMIR), temporary product intervention measures of ESMA in relation to contracts for differences (CFDs) and binary options, and the implementation of investor protection topics under the Market in Financial Instruments Directive and Regulation (MiFID II/MiFIR).
The updates include the following:
- Q&A on EMIR— The updates cover amendments to the existing General Q&A on identification of counterparties to a derivative, also confirming that a portfolio manager could be a counterparty to a derivative when entering into a derivative on its own account and own behalf. It also includes amendments to the existing trade repositories Q&A on Legal Entity Identifier (LEI), which simplify the description of the existing process. The amendments also explain other processes trade repositories should follow in scenarios where the reports must be updated in relation to the LEI. A new case for reporting derivatives has also been added to the Part IV of the Q&A, which explains the procedure for reporting to trade repositories in a transaction scenario involving portfolio management companies.
- Q&A on product intervention measures—ESMA updated Q&A on temporary product intervention measures of ESMA on the marketing, distribution or sale of CFDs and binary options to retail clients based on Article 40 of MiFIR. The Q&A provides clarification on the application of the temporary product intervention measures on clients established outside the Union and non-Union nationals.
- Q&A on MiFID/MiFIR—The updates include new Q&As on the topics of inducements (research) and provision of investment services by thir- country firms. The overall MiFID II Q&A provide clarifications on topics such as best execution, suitability and appropriateness, post-sale reporting, record keeping, and investment advice on an independent basis.
The Q&A mechanism is a practical convergence tool used to promote common supervisory approaches and practices. It is intended to help investors and other market participants by providing clarity on the regulatory requirements.
Related Links
Keywords: Europe, EU, Securities, EMIR, MiFID/MiFIR, Product Intervention Measures, Q&A, Investor Protection, ESMA
Previous Article
Vicky Saporta of BoE Speaks on Future of Prudential Bank RegulationRelated 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.