General Information & Client Service
  • Americas: +1.212.553.1653
  • Asia: +852.3551.3077
  • China: +86.10.6319.6580
  • EMEA: +44.20.7772.5454
  • Japan: +81.3.5408.4100
Media Relations
  • New York: +1.212.553.0376
  • London: +44.20.7772.5456
  • Hong Kong: +852.3758.1350
  • Tokyo: +813.5408.4110
  • Sydney: +61.2.9270.8141
  • Mexico City: +001.888.779.5833
  • Buenos Aires: +0800.666.3506
  • São Paulo: +0800.891.2518
October 09, 2017

The ESMA Chair Steven Maijoor delivered a statement at the European Parliament, as part of the annual hearing of the chairs of the three ESAs. He briefly outlined ESMA’s key activities over the past 12 months, along with the upcoming challenges for the EU’s capital markets and ESMA. The key covered activity areas were single rulebook, supervisory convergence, risk assessment, and direct supervision. The statement was largely focused on implementation of the second Markets in Financial Instruments Directive (MiFID II) and the UK's exit from the EU.

In his statement, Mr. Maijoor focused on ESMA’s work in preparation for the implementation of MiFID II as well as on the general readiness of regulators to operate within the new framework. “MIFID II implementation highlights that the single rulebook needs to be complemented by supervisory convergence measures. Therefore, in the past 12 months, ESMA issued a large number of guidelines and questions and answers to ensure coherent and consistent application of the rules coming into force,” said the ESMA Chair.

With regard to the work on preparing for Brexit, he highlighted that certain market participants needing to re-locate from the UK to the EU-27 to maintain Single Market access sparked concerns about regulatory arbitrage among the EU-27 member states to attract business. One general opinion was issued in May and three sector-specific ones were issued in July for investment firms, secondary markets, and asset management; these opinions tackled the key aspects of outsourcing and delegation to third countries. As per Mr. Maijoor, “We relied strictly on existing EU legislation, and aimed at providing appropriate guidance to the NCAs [national competent authorities], which are dealing with requests from re-locating entities. Moreover, in the interest of supervisory and regulatory convergence, ESMA launched the Supervisory Cooperation Network, offering a forum for NCAs to discuss individual relocation cases on an anonymous basis.”

He also explained that ESMA has recently commenced its work on reviewing its Guidelines for the Endorsement of Third-Country Credit Rating Agencies. However, it is clear that some significant legislative changes need to be considered soon, potentially in a horizontal manner. The first steps have been made by the EC in relation to the European Markets Infrastructure Regulation (EMIR). The ESMA Chair welcomed the proposal to assign certain supervisory powers over third country-central counterparties (CCPs) to ESMA, in relation to CCPs having a significant impact on the stability of the EU financial market. He concluded that further bold steps are required to maintain momentum in the delivery of the Capital Markets Union, following on the initiatives that have been already taken.

 

Related Link: Statement (PDF)

Keywords: Europe, EU, UK, Securities, MiFID II, Brexit, EMIR, CCP, Capital Markets Union, ESAs, ESMA

Related Insights
News

US Agencies Propose Revisions to FFIEC Reports 031, 041, 051, and 101

US Agencies (FDIC, FED, and OCC) propose to extend for three years, with revision, FFIEC 031, FFIEC 041, FFIEC 051, and FFIEC 101.

February 21, 2019 WebPage Regulatory News
News

OFR Adopts Data Collection Rule on Centrally Cleared Repo Transactions

OFR adopted a final rule to establish a data collection covering centrally cleared funding transactions in the U.S. repurchase agreement (repo) market.

February 20, 2019 WebPage Regulatory News
News

FHFA Finalizes Rule on Federal Home Loan Bank Capital Requirements

FHFA published, in Federal Register, the final rule to adopt, as its own, portions of the regulations of the Federal Housing Finance Board pertaining to the capital requirements for the Federal Home Loan Banks.

February 20, 2019 WebPage Regulatory News
News

PRA Publishes PS4/19 on Loss-Absorbency Mechanism Under Solvency II

PRA published a policy statement (PS4/19) that provides feedback on responses to the consultation paper (CP27/18) on adjusting for the reduction of loss absorbency where own fund instruments are taxed on write down under Solvency II.

February 20, 2019 WebPage Regulatory News
News

SRB Publishes Framework for Performing Valuations in Resolution

The framework provides independent valuers and the general public with an indication of the expectations of SRB on the principles and methodologies for valuation reports, as set out in the legal framework.

February 19, 2019 WebPage Regulatory News
News

BIS Paper on Effect of Securities Lending on OTC Market Liquidity

BIS published a working paper that studies how securities lending affects over-the-counter market (OTC) liquidity.

February 19, 2019 WebPage Regulatory News
News

US Agencies Extend Consultation Period for the Proposed SA-CCR

US Agencies (FDIC, FED, and OCC) extended the comment period for a proposed rule to update their standards for how firms measure counterparty credit risk posed by derivative contracts.

February 18, 2019 WebPage Regulatory News
News

FED Extends Consultation Period for Stress Testing Rule

FED has published in the Federal Register a notice proposing amendments to the company run and supervisory stress test rules.

February 15, 2019 WebPage Regulatory News
News

EBA Single Rulebook Q&A: Third Update for February 2019

EBA published answers to two questions under the Single Rulebook question and answer (Q&A) updates for this week.

February 15, 2019 WebPage Regulatory News
News

SEC Proposes Rule on Risk Mitigation Techniques for Uncleared SBS

SEC proposed a rule that would require the application of specific risk-mitigation techniques to portfolios of security-based swaps (SBS) that are not submitted for clearing.

February 15, 2019 WebPage Regulatory News
RESULTS 1 - 10 OF 2623