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17 July 2014

This week in "Brussels"

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Articles from 10 July 2014 - 17 July 2014


ECB: Hearing at the Committee on Economic and Monetary Affairs of the European Parliament (ECON)
Mario Draghi shared the European Central Bank’s assessment of the economic outlook for the euro area. Then he explained the package of policy measures ECB adopted at the beginning of June. Finally, he touched upon the challenges in the next five years.  View Article
ECB: Signs of a turnaround in the international use of the euro
The euro area attracted more foreign investment last year than in the year before, but the share of the euro in foreign exchange reserves and its role as currency in international financing slightly declined. These are among the main findings of the report on “The international role of the euro”.  View Article
ECB: Interview with Il Sole 24 Ore
European Central Bank: Danièle Nouy, Chair of the Supervisory Board of the Single Supervisory Mechanism, with Alessando Merli - Il Sole 24 Ore, linked to stress test, comprehensive assesment, new supervisory duties, SSM and others.  View Article
The EBA published an Opinion on the macroprudential tools laid down in CRR/CRDIV
The Opinion assesses whether the current rules are effective, efficient and transparent  View Article
EBA: Consultation on technical standards on independent valuers
The EBA launched a consultation on draft RTS setting out the general criteria against which a valuer should be assessed to determine whether (s)he complies with the legal requirement of independence when performing valuation tasks with respect to a bank under resolution.   View Article
EBA: Revised guidelines on high earners and remuneration
The EBA published revised Guidelines on (i) the data collection exercise regarding high earners and (ii) on the remuneration benchmarking exercise. The update ensures that the data collection is in line with the amended provisions laid down in the Capital Requirements Directive (CRD IV).  View Article
ECB: disclosure process for comprehensive assessment
The Bank published on July 17th its process for interacting with banks and communicating the results of its on-going comprehensive assessment of 128 banks.   View Article


Financial News: ESMA proposes 2016 deadline for OTC clearing
Europe's buy-side has been given greater clarity on when it will need to start clearing over-the-counter derivatives under new rules coming into force later this year.  View Article
PensionsEurope’s response to consultation on OTC-derivative contracts
PensionsEurope warns against a one-size-fit-all approach to regulating such highly complex matters, in its response to the Consultation Paper on Draft RTS on risk-mitigation techniques for OTC-derivative contracts not cleared by a CCP.  View Article
Insurance Europe‘s response to draft RTS on OTC derivatives
Insurance Europe believes that consistency of rules across jurisdictions is key to the efficient implementation of EMIR. A delay in the current phase-in schedule should be foreseen, ideally to allow experience in the central clearing environment to inform implementation in the OTC area.  View Article
EFAMA responds to draft RTS on OTC-derivatives
According to EFAMA, to ensure that small and medium size counterparties are not commercially forced to deliver initial margins, the 8 billion thresholds should be reinforced through the generalization of a Minimum Transfer Amount applicable on the Initial Margin for entities below the threshold.  View Article
EACT responds to consultation on draft RTS on OTC-derivative contracts
EACT believe it would be helpful if for non-financial counterparties subject to the margin requirements re-hypothecation of collateral was permitted on a contract by contract basis, giving flexibility to non-financial companies in order to preserve liquidity.  View Article
AFME responds to draft on OTC-derivatives
The Draft RTS also has significant implications for the business model and activities of prime brokers, in relation to the provision of both variation and initial margin, AFME and its members are concerned.  View Article
Financial News: Counter closed- The rules that will hit OTC trading
As Europe prepares to introduce rules that will drive up the cost of over-the-counter derivatives trading, fears are growing that some investors could be left in the cold.  View Article
ECBC responds to ESAs Consultation Paper on EMIR
The European Covered Bond Council (ECBC) submitted its response to the consultation on risk-mitigation techniques for OTC-derivative contracts not cleared by a Central Counterparty.   View Article
ESMA publishes 10th updated EMIR Q&A
ESMA has published an update of its Questions & Answers (Q&A) document regarding the implementation of the European Markets Infrastructure Regulation (EMIR).  View Article
The Trade: Open access brings new clearing efficiencies
New regulations will dramatically change the clearing landscape across Europe. The MiFID II requires central counterparties (CCPs) to clear derivatives trades for any venue across the continent, known as the open access rule.  View Article
ESMA: Consultation on central clearing of interest rate and credit default swaps
ESMA launched a first round of consultations to prepare for central clearing of OTC derivatives within the EU. The two consultation papers seek stakeholders’ views on draft regulatory technical standards (RTS) for the clearing of Interest Rate Swaps (IRS) and Credit Default Swaps (CDS).   View Article
ESMA details new market abuse regime
ESMA launched a consultation on the new Market Abuse Regulation (MAR) which entered into force on 2 July 2014. It is issuing two consultation papers seeking stakeholders’ views on the draft regulatory and implementing technical standards (RTS/ITS) and Technical Advice (TA).  View Article
ESMA: Consultation on credit ratings agencies periodic information
The European Securities and Markets Authority launched a consultation on new supervisory guidelines regarding the information that is periodically submitted to ESMA by credit rating agencies.   View Article
Public comment on IOSCO Code for CRAs
IOSCO has published comments received on the proposed revisions to the Code of Conduct Fundamentals for Credit Rating Agencies (the “CRA Code of Conduct”).  View Article


EIOPA: Consumer protection and conflicts of interest in sales of insurance-based investment products
Speech by Gabriel Bernardino, Chairman of European Insurance and Occupational Pensions Authority, at the EIOPA Public event on Conflicts of Interest in Frankfurt linked to consumer protection.  View Article

Asset Management

IPE: Number of cross-border IORPs increases for first time since 2011
The market for cross-border Institutions for Occupational Retirement Provision (IORPs) has returned to expansion over the last 12 months, after two years of contraction or stagnation, according to official figures.  View Article
IPE: Revised IORP Directive could be 'impossible' to pass, MEP Thomas Händel warns
The revised IORP Directive could remain “impossible” as European Union member states continue their opposition to Brussels being granted the requisite competences, the MEP charged with scrutinising European pensions legislation has said.  View Article

Corporate Governance/Accounting

IFRS Foundation and ESMA: Joint Statement of Protocols
The IFRS Foundation and the ESMA agreed a joint Statement of Protocols to serve as the basis for future co-operation in areas of mutual interest.  View Article
EFRAG: Consultation on lessee accounting
EFRAG is consulting on two alternative approaches for lessees. EFRAG is also interested in examples of contracts or transactions that would qualify as leases under the proposals but in users’ views are in substance services.  View Article
EBF event ‘IFRS at crossroads’
The event underlined the need for public and private sectors to cooperate on implementation, focussing on IFRS 9, the links between financial reporting and the regulatory framework and the future of IFRSs.  View Article
CFA Institute: Financial crisis insights on bank performance reporting
The CFA Institute has published a report entitled 'Financial Crisis Insights on Bank Performance Reporting (Part 1): Assessing the Key Factors Influencing Price-to-Book Ratios', suggesting that better reporting of risk and timely loan write-downs on balance sheets.  View Article
'Making the Right Choices': Implementing the New European Accounting Directive: statement from EFAA-ACCA-NBA
In implementing the New European Accounting Directive, the Member States have choices which give them the chance to improve accounting in their country and those choices should be more evidence-based.  View Article
FEE: factsheet on Directive on disclosure of non-financial and diversity information
FEE has published its factsheet on the Directive on disclosure of non-financial and diversity information by certain large undertakings and groups adopted by the EP. It amends existing accounting legislation, increasing the relevance, consistency and comparability of information.  View Article

European Council/Parliament

European Parliament elects Jean-Claude Juncker as Commission President
With 422 votes in favour, the European Parliament elected Jean-Claude Juncker in a secret ballot on 15 July as President of the new European Commission to take office on 1 November 2014 for a five year term. The minimum number of votes required was 376.  View Article
European Union: Top Jobs latest- no decision on Council President or High. Rep.
With Jean-Claude Juncker elected on June 15th, attention moved to the special European Council on July 16th. Top jobs expected to be announced: Council President, Chair of Eurogroup, High Rep for External affairs. The summit was inconclusive and leaders meet in six weeks to try again.  View Article
European Council: rules setting up single resolution mechanism adopted
The Council adopted a regulation establishing a single resolution mechanism for failing banks on July 14th.  View Article

Grahams Articles, Comments & Speeches

Power to the European people: `Capital Market Union’
Capital market union can offset some of the sovereignty pooled in banking union because it is an open union that enables the savers of Europe to make their own choice about where they put their money – and de-centralise both financial and political power.   View Article

Think Tanks/EP groups

Breugel: Did the German court do Europe a favour?
The European Central Bank’s Outright Monetary Transactions (OMT) programme was a politically-pragmatic tool to diffuse the euro-area crisis. But it did not deal with the fundamental incompleteness of the European monetary union  View Article

© Graham Bishop

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