The European Banking Authority (EBA) revised the list of validation rules for its reporting framework. The revised list highlights rules that have been deactivated either for incorrectness or for triggering information technology problems. Additionally, the European Supervisory Authorities (ESAs) published a report that sets out the draft regulatory technical standards proposing to amend the Commission Delegated Regulation (2016/2251) on the risk mitigation techniques for over-the-counter (OTC) derivatives not cleared by a central counterparty or CCP (bilateral margin requirements). The European Securities and Markets Authority (ESMA) also published a final report containing the draft regulatory technical standards proposing to amend the three Commission Delegated Regulations (2015/2205, 2016/592, and 2016/1178) on clearing obligation under the European Market Infrastructure Regulation (EMIR).
The amendments included in these draft regulatory technical standards proposed to extend the current temporary exemptions regime for intragroup contracts by three years. The extension of temporary exemptions will accommodate the ongoing assessment of third-country equivalence and allow for a review of the intragroup exemptions framework under the EMIR review. The bilateral margin Delegated Regulation and the clearing obligation Delegated Regulations originally introduced temporary exemptions for intragroup contracts with third-country group entities, to facilitate centralized risk management-procedures for groups. The proposed amendments relate to the temporary regime for intragroup OTC derivative contracts where one counterparty is established in a third country and the other counterparty is established in the European Union. ESAs are of the view that a review of the EMIR framework for intragroup exemptions for contracts with third countries, as well as its interaction with the Capital Requirements Regulation (CRR), would be desirable and the scheduled upcoming review of EMIR offers the opportunity to address aforementioned challenges. The current temporary regime expires on June 30, 2022; to avoid any negative consequences, the draft regulatory technical standards proposed to extend the temporary regime by three years.
ESAs have developed the draft regulatory technical standards on bilateral margining under Article 11(15) of EMIR, while ESMA has developed the draft regulatory technical standards on the clearing obligation under Article 5(2) of EMIR. ESAs have now submitted these draft standards to the European Commission for endorsement. Following their endorsement, the standards will then be subject to non-objection by the European Parliament and the Council.
- Press Release on Revised Validation Rules
- Revised Validation Rules (XLSX)
- Reporting Frameworks
- Press Release on Amendments to Standards
- Report on Bilateral Margin Standards (PDF)
- Report on Clearing Obligation (PDF)
Keywords: Europe, EU, Banking, Validation Rules, Reporting, Basel, Insurance, Securities, Regulatory Technical Standards, Clearing Obligation, EMIR, Derivatives, Bilateral Margin Requirements, CRR, EBA, ESMA, ESAs
Previous ArticleEBA Annual Report Outlines Strategic Priorities for 2022
The Australian Prudential Regulation Authority (APRA) has published the findings of its latest climate risk self-assessment survey conducted across the banking, insurance, and superannuation industries.
The French Prudential Supervisory Authority (ACPR) published a notice related to the methods for calculating and publishing prudential ratios under the Capital Requirements Directive (CRD IV) and the minimum requirement for own funds and eligible liabilities (MREL).
The Financial Stability Institute (FSI) of the Bank for International Settlements recently published a paper proposing a framework for classifying financial stability regulation as either entity-based or activity-based.
The European Insurance and Occupational Pension Authority (EIOPA) published the risk dashboard based on Solvency II data and the final version of the application guidance on climate change materiality assessments and climate change scenarios in the Own Risk and Solvency Assessment (ORSA).
The European Banking Authority (EBA) and the European Central Bank (ECB) published their responses to the consultations of the International Sustainability Standards Board (ISSB) and the European Financial Reporting Advisory Group (EFRAG) on sustainability-related disclosure standards.
A Consultative Group on Risk Management (CGRM) at the Bank for International Settlements (BIS) published a report that examines incorporation of climate risks into the international reserve management framework.
The European Banking Authority (EBA) published the final guidelines on liquidity requirements exemption for investment firms, updated version of its 5.2 filing rules document for supervisory reporting, and Single Rulebook Question and Answer (Q&A) updates in July 2022.
The European Insurance and Occupational Pensions Authority (EIOPA) published Version 2.8.0 of the Solvency II data point model (DPM) and XBRL taxonomy.
The European Union published, in the Official Journal of the European Union, an opinion from the European Economic and Social Committee (EESC); the opinion is on the proposal for a regulation to amend the Capital Requirements Regulation (CRR).
HM Treasury published a draft statutory instrument titled “The Financial Services (Miscellaneous Amendments) (EU Exit) Regulations 2022,” along with the related explanatory memorandum and impact assessment.