EC published the Implementing Decision (EU) 2019/684 on the recognition of the legal, supervisory, and enforcement arrangements of Japan for derivatives transactions supervised by the JFSA as equivalent to the valuation, dispute resolution, and margin requirements under Article 11 of the European Market Infrastructure Regulation, or EMIR (EU No 648/2012). The Decision (EU) 2019/684 shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.
Ahead of the 26th EU-Japan Summit, which will take place in Brussels, EC has determined certain rules of Japan to be equivalent to the EMIR in terms of the legal, supervisory, and enforcement arrangements for non-centrally cleared over-the-counter (OTC) derivatives transactions. The decision concludes that JFSA rules on valuation and dispute resolution for OTC derivative contracts not cleared by a central counterparty are equivalent to EMIR. It also determines that JFSA rules on obligations on the exchange of collateral between counterparties are equivalent to EU rules. This EC decision will alleviate the regulatory burden for EU and Japanese companies. It will allow market participants to comply with only one set of rules and to avoid duplicative or conflicting rules.
Keywords: Europe, Asia Pacific, EU, Japan, Banking, Securities, Equivalence Decision, EMIR, JFSA, OTC Derivatives, EC
Previous ArticleEBA Consults on Regulatory Technical Standards for SA-CCR
BIS Innovation Hub published the work program for 2021, with focus on suptech and regtech, next-generation financial market infrastructure, central bank digital currencies, open finance, green finance, and cyber security.
In an article published by SRB, Mairead McGuinness, the European Commissioner for Financial Services, Financial Stability, and Capital Markets Union, discussed the progress and next steps toward completion of the Banking Union.
EBA finalized the two sets of draft regulatory technical standards on the identification of material risk-takers and on the classes of instruments used for remuneration under the Investment Firms Directive (IFD).
EC published, in the Official Journal of the European Union, a notification that the European Court of Auditors (ECA) has published a special report on resolution planning in the Single Resolution Mechanism.
BoE published a scenario against which it will be stress testing banks in 2021, in addition to setting out the key elements of the 2021 stress test, guidance on the 2021 stress test, and the variable paths for the 2021 stress test.
PRA published a consultation paper (CP3/21) proposes rules regarding the timing of identity verification required for eligibility of depositor protection under the Financial Services Compensation Scheme (FSCS).
FSB published the work program for 2021, which reflects a strategic shift in priorities in the COVID-19 environment.
FCA announced that 50% firms have started using the new data collection platform RegData, which is slated to replace the existing platform known Gabriel.
Bundesbank published Version 5.0 of the derivation rules for completeness check at the form level, with respect to the data quality of the European harmonized reporting system.
FED finalized a rule that updates capital planning requirements to reflect the new framework from 2019 that sorts large banks into categories, with requirements that are tailored to the risks of each category.