Featured Product

    EC Amends Regulation Establishing the List of Critical Benchmarks

    March 25, 2019

    EC published the Implementing Regulation (EU) 2019/482, which amends the Regulation (EU) 2016/1368 that establishes a list of critical benchmarks used in financial markets pursuant to Benchmarks Regulation, or BMR (EU 2016/1011). The key change involves the addition of Warsaw Interbank Offered Rate (WIBOR) to the list of critical benchmarks pursuant to BMR. Regulation (EU) 2019/482 shall enter into force on the day following that of its publication in the Official Journal of the European Union.

    On October 10, 2018, the Polish competent authority, Komisja Nadzoru Finansowego (KNF), notified ESMA of its proposal to recognize the Warsaw Interbank Offered Rate (WIBOR) as a critical benchmark, under point (b) of Article 20(1) of BMR, because it is critical in Poland and it is based on submissions of contributors, all of which are located in Poland. WIBOR is a reference rate based on an average of the interest rates at which banks operating in the Polish money market are willing to lend unsecured funds to each other at different maturities. As of October 10, 2018, eleven banks participate in the WIBOR panel, all of which are located in Poland.

    In its assessment submitted to ESMA, the KNF concluded that the cessation of WIBOR, or its provision on the basis of input data or of a panel of contributors that are no longer representative of the underlying market or economic reality, could have a significant adverse impact on the functioning of financial markets in Poland. On November 08, 2018, ESMA sent EC its opinion setting out that KNF had taken into consideration all the elements and criteria included in Article 20(3) of BMR and that it had provided quantitative data to support the case for the recognition of WIBOR as a critical benchmark, as well as analytical reasoning highlighting the crucial role of WIBOR in the Polish economy. Therefore, the Regulation (EU) 2016/1368 has been amended accordingly. The Annex to Implementing Regulation (EU) 2016/1368 has been replaced by the text in the Annex to Regulation (EU) 2019/482.

     

    Related Links

    Effective Date: March 26, 2019

    Keywords: Europe, EU, Poland, Banking, Securities, WIBOR, Regulation 2019/482, Regulation 2016/1368, Benchmarks Regulation, Critical Benchmarks, Interest Rate Benchmarks, ESMA, EC

    Related Articles
    News

    SEC Adopts Rules and Amendments Under Regulatory Regime for Swaps

    SEC announced that it took a significant step toward establishing the regulatory regime for security-based swap dealers (SBSDs) by adopting a package of rules and rule amendments under Title VII of the Dodd-Frank Act.

    September 19, 2019 WebPage Regulatory News
    News

    APRA Revises Standard on Margin Rules for Uncleared Derivatives

    APRA revised CPS 226, which is the prudential standard on margin and risk mitigation requirements for non-centrally cleared derivatives.

    September 19, 2019 WebPage Regulatory News
    News

    BIS Formalizes Agreement to Set Up Innovation Hub in Hong Kong SAR

    BIS and HKMA signed the Operational Agreement on the BIS Innovation Hub Center in Hong Kong Special Administrative Region (SAR).

    September 18, 2019 WebPage Regulatory News
    News

    PRA Proposal on Probability of Default and LGD Estimation

    PRA proposed, via the consultation paper CP21/19, an approach to implementing EBA’s recent regulatory products relating to Probability of Default (PD) estimation, Loss Given Default (LGD) estimation, and the treatment of defaulted exposures in the internal ratings-based (IRB) approach to credit risk.

    September 18, 2019 WebPage Regulatory News
    News

    PRA Issues Consultation on Prudent Person Principle Under Solvency II

    PRA, via the consultation paper CP22/19, has set out its proposed expectations for investment by firms, in accordance with the Prudent Person Principle (PPP).

    September 18, 2019 WebPage Regulatory News
    News

    CFTC Extends Comment Period for Proposals on Cross-Border Clearing

    CFTC announced that it is extending, until November 18, 2019, the comment period for the proposal for an alternative compliance framework for derivatives clearing organizations (DCOs) that are organized outside of U.S. and that do not pose substantial risk to the U.S. financial system.

    September 18, 2019 WebPage Regulatory News
    News

    BNM Publishes Financial Stability Review for the First Half of 2019

    BNM published Financial Stability Review for the first half of 2019.

    September 18, 2019 WebPage Regulatory News
    News

    APRA Observations from Thematic Review on Recovery Plans of Insurers

    APRA issued a letter to general insurers and life insurers, outlining observations from a recent thematic review on recovery planning by insurers.

    September 18, 2019 WebPage Regulatory News
    News

    FASB Issues Summary of Tentative Board Decisions at September Meeting

    FASB published a summary of the tentative decisions taken at its Board meeting in September 2019.

    September 18, 2019 WebPage Regulatory News
    News

    EIOPA Forms Consultative Expert Group on Digital Ethics in Insurance

    EIOPA established the Consultative Expert Group on Digital Ethics in Insurance to assist EIOPA in the development of digital responsibility principles in insurance.

    September 17, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 3848