Articles from 28 January-3 February 2022
General Financial Policy
European Commission: New approach to enable global leadership of EU standards promoting values and a resilient, green and digital Single Mar : Standards are the silent foundation of the EU Single Market and global competitiveness. They help manufacturers ensure the interoperability of products and services, reduce costs, improve safety and foster innovation.
EPC: High Noon for the Conference on the Future of Europe : Last weekend, the Conference on the Future of Europe entered a new phase.
Banking Union
MEPs agree on changes to improve resolution framework for EU banks : The text adopted today by a large majority introduces several important points significantly improving on the European Commission proposal.
SRB publishes MREL dashboard Q3 2021 : The dashboard shows that, on the whole, banks continue to make progress in building up their level of MREL, the financial instruments each bank must hold to absorb losses and recapitalise in the event of a failure.
EBA launches today 'EuReCA', the EU's central database for anti-money laundering and counter-terrorism financing : This European reporting System for material CFT/AML weaknesses, EuReCA, will be central to coordinating efforts by competent authorities and the EBA to prevent and counter money laundering and terrorist financing (ML/TF) risks in the Union.
Capital Markets Union
ESMA publishes Final Reports on CCP recovery regime : The seven Final Reports cover proposals for Regulatory Technical Standards (RTSs) on the methodology for calculation and maintenance of the additional amount of pre-funded dedicated own resources, on the factors to be taken into account.. the recompense mechanism for non-defaulting clearing members.
ESMA consults on CCP anti-procyclicality measures : ESMA is seeking input from stakeholders on a potential review of its Regulatory Technical Standards (RTS) with the aim of harmonising the existing APC margin measures for CCPs as well as specific anti-procyclicality tools.
ESMA recommends clearing obligation for pension funds to start in June 2023 : ESMA, following its assessment, concludes that PSAs are, to a large extent, operationally ready to clear their OTC derivatives but they should be given sufficient time before a clearing obligation for PSAs takes effect.
ICMA has published, ‘Optimising settlement efficiency - An ERCC discussion paper’ : While ICMA and the ERCC have been supportive of cash penalties, we believe that these should be supplemented by a broader industry effort to support settlement efficiency, focusing on existing tools and processes.
ESMA makes new bond liquidity data available and publishes data for the systematic internaliser calculations : ESMA has published the latest quarterly liquidity assessment for bonds available for trading on EU trading venues. For this period, there are currently 513 liquid bonds subject to MiFID II transparency requirements.
ESMA publishes supervisory briefing on the use of tied agents under MiFID II : ESMA’s monitoring of the activities of market participants from the United Kingdom (UK) in the EU has shown that such a briefing will contribute to the development of a convergent EU supervisory culture. It will also foster improved investor protection.
EIOPA: Follow-up survey on the Pan-European Personal Pension Product : The aim of this survey is to gauge and better understand the potential take-up of PEPP by eligible providers (asset managers, insurance undertakings, IORPs and credit institutions, including banks).
Environmental, Social, Governance (ESG)
Remarks by Commissioner McGuinness at the press conference on the EU Taxonomy Complementary Climate Delegated Act : We said when we adopted the first Delegated Act that we would return to some of the more difficult elements, and that's why we are here today.
EURACTIV: Austria, Luxembourg to take green label for nuclear and gas to EU courts : The EU’s sustainable finance rules presented on Wednesday will award a “green” label to gas and nuclear power, which has prompted Austria and Luxembourg to announce a lawsuit.
POLITICO: Green bust or green flush: Figuring out the impact of the EU’s new investment rules : The financial taxonomy creates a ‘common language’ for green investing.
ECB Banking Supervision launches 2022 climate risk stress test : Stress test to be learning exercise to assess banks’ climate-risk preparedness; Aggregate results to be published in July 2022; No direct capital impact on banks from exercise
Protecting Customers
EIOPA consults on its proposals on Retail Investor Protection : The Commission's Call for advice relates to the implementation of the European Commission’s Capital Markets Union Action Plan and, more specifically, its Retail Investment Strategy, which aims to improve consumer outcomes and increase consumer participation in capital markets.
Fin Tech Regulation
Finance Watch: Facebook’s digital currency plans: frozen for good or merely on ice? : But regulators and citizens cannot afford to grow complacent. With thousands of crypto-assets in circulation, and dozens more being launched every day, others may follow where Facebook sought to lead.
Oliver Wyman's Elliott: Are Cryptoassets Tulips or Dot-coms? : Our new paper suggests the answer may lie somewhere in the middle, and could lead to more effective policy responses V
Friends' Standard Services
CSFI: 179th Brussels 4 Breakfast with Tilman Lueder - DG FISMA : Tilman Lueder gives a fascinating insight into the Commission's work programme, covering its priorities in the securities/markets area. View Article
Economic Policies Impacting EU Finance
Jacques Delors Centre: How to make the marriage work: Wedding the Recovery and Resilience Facility and European Semester : A year into its existence, the Recovery and Resilience Facility finds itself closely wed to the European Semester. It is a difficult marriage, but it is a marriage made to last.
Brexit and the City
Reuters: EU ropes in pension funds to boost post-Brexit clearing capacity : Mandatory clearing of derivatives contracts by pension funds in the European Union should start in June 2023, helping the bloc to cut reliance on London, the EU’s securities watchdog said on Tuesday.
CITY AM: Brexit financial services regulation bonfire set to be in next Queen’s Speech : An overhaul of the UK’s financial services regulation is set to be included in the next Queen’s Speech as the government speeds up its push to make the City more competitive post-Brexit.
City of London: Our global offer to business: London and the UK’s competitive strengths in a critical time : As financial centres across the world respond and adapt to significant challenges and change, the UK continues to be the only centre to perform well across all five dimensions: innovation, reach of financial activity, resilient business infrastructure, people, and business environment.
Bloomberg: Paris Wants to Become the Mayfair of Europe for Hedge Funds : EU access and Macron’s tax cuts entice Millennium and Citadel; Talented French graduates are another big pull for U.S. firms