EC Adopts Equivalence Decision for Derivatives Transactions in Japan
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.
Related Links
Keywords: Europe, Asia Pacific, EU, Japan, Banking, Securities, Equivalence Decision, EMIR, JFSA, OTC Derivatives, EC
Related Articles
PRA Finalizes Supervisory Approach for Non-Systemic Banks in UK
PRA published the policy statement PS8/21, which contains the final supervisory statement SS3/21 on the PRA approach to supervision of the new and growing non-systemic banks in UK.
EBA Finalizes Standards on Methods of Prudential Consolidation
EBA published a report that sets out the final draft regulatory technical standards specifying the conditions according to which consolidation shall be carried out in line with Article 18 of the Capital Requirements Regulation (CRR).
EBA Updates List of Other Systemically Important Institutions in EU
EBA updated the list of other systemically important institutions (O-SIIs) in EU.
BCBS Report Concludes Basel Risk Categories Can Capture Climate Risks
BCBS published two reports that discuss transmission channels of climate-related risks to the banking system and the measurement methodologies of climate-related financial risks.
UK Authorities Welcome FSB Review of their Remuneration Regime
UK Authorities (FCA and PRA) welcomed the findings of FSB peer review on the implementation of financial sector remuneration reforms in the UK.
PRA and FCA Letter on Addressing Risks from Use of Deposit Aggregators
PRA and FCA jointly issued a letter that highlights risks associated with the increasing volumes of deposits that are placed with banks and building societies via deposit aggregators and how to mitigate these risks.
MFSA to Amend Banking Act and Rules in Coming Months to Transpose CRD5
MFSA announced that amendments to the Banking Act, Subsidiary Legislation, and Banking Rules will be issued in the coming months, to transpose the Capital Requirements Directive (CRD5) into the national regulatory framework.
EC Delegated Regulation on Specialized Lending Exposures Under CRR
EC finalized the Delegated Regulation 2021/598 that supplements the Capital Requirements Regulation (CRR or 575/2013) and lays out the regulatory technical standards for assigning risk-weights to specialized lending exposures.
OSFI Proposes to Enhance Assurance Expectations for Basel Returns
OSFI launched a consultation to explore ways to enhance the OSFI assurance over capital, leverage, and liquidity returns for banks and insurers, given the increasing complexity arising from the evolving regulatory reporting framework due to IFRS 17 (Insurance Contracts) standard and Basel III reforms.
ECB Issues Results of Benchmarking Analysis of Recovery Plans of Banks
ECB published results of the benchmarking analysis of the recovery plan cycle for 2019.
