ESMA updated question and answer (Q&A) documents on the application of Alternative Investment Fund Managers Directive (AIFMD) and on market structures and transparency issues under the Market in Financial Instruments Directive (MiFID II) and Regulation (MiFIR). The Q&A mechanism is a practical convergence tool used to promote common supervisory approaches and practices. It is intended to help investors and other market participants by providing clarity on the requirements of various regulations and directives.
ESMA has added a new Q&A clarifying the application of the AIFMD notification requirements with regard to AIFMs managing umbrella alternative investment funds on a cross-border basis. The updated Q&A on MiFID II and MiFIR market structures and transparency issues include the following:
- Classification of derivatives on derivatives for transparency purposes
- Default liquidity status of bonds (amendment to an existing Q&A)
- Scope of the pre-trade transparency waiver provided under Article 9(1)(c) of MiFIR
- Market-making activities and incentives to be provided during stressed market conditions
- Treatment of bulk quotes for the calculation of the Order to Trade Ratio
- Scope of Article 17(6) of MiFID II and Chapter IV (Articles 24-27) of Delegated Regulation (EU) 2017/589 (RTS 6)
- Arranging of transactions that are ultimately formalised on another trading venue
- Registration of a segment of a multilateral trading facility, or MTF, as a small and medium enterprise growth market
- Maker Taker schemes
Keywords: Europe, EU, Securities, Q&A, MiFID II, Transparency, Market Structure, AIFMD, ESMA
Previous ArticleACPR Publishes Declaration Forms for Deposit Guarantee Scheme
BoE published a statistical notice (Notice 2020/9) explaining the approach for treatment of payment holidays on the profit and loss return or Form PL.
BoE updated the known issues document for the statistical reporting Forms AS and FV.
FED announced individual capital requirements for 34 large banks and these requirements go into effect on October 01, 2020.
SRB published a set of documents to give operational guidance to banks on implementation of the bail-in tool.
BIS published an update on the G20 TechSprint Initiative, which was launched in April 2020 and aims to highlight the potential for technologies to resolve regulatory compliance (regtech) and supervisory (suptech) challenges.
OSFI published a letter that provides an update on the milestones for the implementation of the IFRS 17 standard on insurance contracts.
EBA updated the report on the implementation of selected COVID-19 policies.
The Financial Stability Institute (FSI) of BIS published a brief note that examines the supervisory challenges associated with certain temporary regulatory relief measures introduced by BCBS and prudential authorities in response to the COVID-19 pandemic.
BCBS is consulting on the principles for operational resilience and the revisions to the principles for sound management of operational risk for banks.
BoE updated the reporting template for Form ER as well as the Form ER definitions, which contain guidance on the methodology to be used in calculating annualized interest rates.