ESMA published responses to its consultation proposing amendments to the main indices and recognized exchanges under the Capital Requirements Regulation (CRR). The consultation was launched on May 24, 2019 and responses on the consultation were to be submitted by July 05, 2019. ESMA has published responses from the Association for Financial Markets in Europe (AFME), Cboe Europe Limited, and Morgan Stanley Capital International (MSCI). Post finalization of the proposed implementing technical standards that amend Regulation 2016/1646, ESMA will submit a final report to EC for endorsement.
ESMA considers it necessary to introduce amendments to the Commission Implementing Regulation (EU) 2016/1646 to ensure that the most updated list of main indices and recognized exchanges is incorporated into the legislative text. The Implementing Regulation (EU) 2016/1646 sets the criteria to identify the main indices and recognized exchanges for the purposes of CRR. As there is no legislative procedure, other than amending the implementing technical standard, ESMA had proposed, in May, to update the legislative text to take into account relevant amendments to the list of main indices and recognized exchanges since the publication of the original implementing technical standard. ESMA, to identify the main indices, also proposed to use a new methodology that can be homogeneously applied to EU and non-EU indices. Under this new methodology, an index would qualify as a main index if it passes one of following two tests:
- The first test aims to capture indices composed predominantly by medium and large cap stocks.
- The second test ensures that indices composed predominantly of small cap stocks are also eligible to be included in the list of main indices, provided that all components of the index are sufficiently liquid.
Keywords: Europe, EU, Banking, Securities, Regulation 2016/1646, Recognized Exchanges, Implementing Technical Standards, Indices, Responses to Consultation, CRR, ESMA
Previous ArticleFSB Publishes Summary of Its Plenary Meeting in April 2019
FDIC is seeking comments on a rule to amend the interagency guidelines for real estate lending policies—also known as the Real Estate Lending Standards.
ISDA is consulting on the implementation of fallbacks for the sterling LIBOR ICE Swap Rate and for the USD LIBOR ICE Swap Rate.
BIS and BoE launched the BIS Innovation Hub Center in London, which is the fourth new Innovation Hub Centre to be opened in the past two years.
ESRB published recommendations on the reciprocation of macro-prudential measures in Belgium, France, Luxembourg, Norway, and Sweden.
SEC announced that the Office of Information and Regulatory Affairs released the Spring 2021 Unified Agenda of Regulatory and Deregulatory Actions.
EC published the Delegated Regulation 2021/931, which supplements the Capital Requirements Regulation (CRR or Regulation 575/2013) with regard to the regulatory technical standards specifying the method for identifying derivative transactions with one or more than one material risk driver.
BCBS is consulting on preliminary proposals for the prudential treatment of cryptoasset exposures of banks.
EBA issued a revised list of validation rules under the implementing technical standards on supervisory reporting.
BIS Innovation Hub, BDF, and SNB announced that, together with a private-sector consortium led by Accenture, they will conduct an experiment using wholesale central bank digital currency (wCBDC) for cross-border settlement.
ESAs published two amended implementing technical standards on the mapping of credit assessments of External Credit Assessment Institutions (ECAIs).