This week in "Brussels"
30 May 2019
ECB growth outlook, CPMI new data on correspondent banking, ESMA consults on indices and recognised exchanges under CRR, EBA 2018 Annual Report, ECB's De Guindos on CMU, MiFID II, ESMA adjustments to STO in a no-deal Brexit, European election & EU institutions renovation and more.
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Articles from 23 May 2019 - 30 May 2019 |
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Banking Union |
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ECB: Challenges to financial stability increase amid downside risks to the economic outlook
“If downside risks to the growth outlook were to materialise, risks to financial stability may arise,” said Luis de Guindos, Vice-President of the ECB. “The growth outlook is central to all the main risks to financial stability.” View Article |
BIS: CPMI publishes new data on correspondent banking networks showing 20% reduction in relationships over seven years
The number of correspondent banking relationships has shrunk by 20% over the past seven years, according to analysis of new data, published today by the Committee on Payments and Market Infrastructures (CPMI), the global standard setter for payment, clearing and settlement services. View Article |
ESMA consults on indices and recognised exchanges under the Capital Requirements Regulation
ESMA considers it necessary to introduce amendments to the Implementing Technical Standard (ITS) to ensure that the most updated list of main indices and recognised exchanges is incorporated into the legislative text. View Article |
FSB launches evaluation of too-big-to-fail reforms and invites feedback from stakeholders
The Financial Stability Board is seeking feedback from stakeholders as part of its evaluation of the effects of the too-big-to-fail (TBTF) reforms for banks that were agreed by the G20 in the aftermath of the global financial crisis. View Article |
EBA publishes its 2018 Annual Report
The European Banking Authority (EBA) published its 2018 Annual Report, which provides a detailed account of all the work the Authority achieved in the past year and anticipates the key areas of focus in the coming year. View Article |
EBA publishes amended technical standards on supervisory and resolution reporting for EU institutions and the corresponding DPM and XBRL tax
The updated corresponding Data Point Model (DPM) and XBRL taxonomy include amendments to COREP and Liquidity, as well as to resolution planning reporting. View Article |
FCA confirms extension of the temporary permission regime deadline
The FCA has confirmed the deadline for notifications for the temporary permissions regime (TPR) will be extended to the end of 30 October 2019. TPR would allow EEA-based firms passporting into the UK to continue new and existing regulated business within the scope of their current permissions in the UK for a limited period, while they seek full FCA authorisation. View Article |
ECB: Report on the results of the Survey on the Access to Finance of Enterprises in the euro area – October 2018 to March 2019
The survey results are consistent with a moderation in growth momentum. SMEs’ financing conditions and access to finance remain favourable despite somewhat higher financing costs and increased macroeconomic uncertainty. View Article |
EPC: Clarification papers on SCT and SCT Inst, SDD Core and SDD B2B rulebooks
The European Payments Council (EPC) published the version 1.4 of the EPC clarification paper on the SEPA Credit Transfer (SCT) and SEPA Instant Credit Transfer (SCT Inst) rulebooks as well as the version 1.2 of the EPC clarification paper on the SEPA Direct Debit (SDD) Core and SDD Business-to-Business (B2B) rulebooks. View Article |
EPC: The SEPA Proxy Lookup (SPL) scheme rulebook 2019 change request public consultation
The EPC launches a three-month public consultation on possible modifications to the SPL scheme rulebook 2019. View Article |
ECB's Cœuré: Payments for the people
Introductory remarks by Benoît Cœuré, Member of the Executive Board of the ECB and Chair of the CPMI, in which he focused on payments, financial inclusion and Payment Aspects of Financial Inclusion report principles. View Article |
BIS: The use of big data analytics and artificial intelligence in central banking
This IFC Bulletin analyses the various aspects related to the use of big data and associated techniques by central banks. View Article |
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Capital Markets Union |
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ECB's De Guindos - Building the EU’s capital markets: what remains to be done
Luis de Guindos, Vice-President of the ECB, shares his thoughts on the future of capital markets union (CMU) project at the Association for Financial Markets in Europe Conference on the Supervision and Integration Opportunities for European Banking and Capital Markets. View Article |
Financial Times: Bankers bemoan MiFID’s high costs and unclear benefits
EU market participants say that poorly-worded rules undermine some key objectives. View Article |
ESMA adjusts application of the trading obligation for shares in a no-deal Brexit
ESMA further considered the impact of the UK leaving the EU without a withdrawal agreement on the trading obligation for shares under Article 23 of MiFIR and in the absence of an equivalence decision in respect of the UK by the European Commission. View Article |
Financial Times: MiFID rules highlight the costs of investing
Wealth managers are now required to produce annual fee statements. View Article |
ESMA updates Q&AS on MiFID II and MiFIR investor protection and intermediaries
The purpose of these Q&As is to promote common supervisory approaches and practices in the application of MiFID II and MiFIR. View Article |
ESMA consults on tiering, comparable compliance and fees under EMIR 2.2
ESMA published three consultation papers under EMIR 2.2 on tiering, comparable compliance and fees. EMIR 2.2 amends EMIR’s regulatory and supervisory regime for central counterparties (CCPs). View Article |
ESMA updates EMIR Q&A
The updated Q&As provide clarifications on the new framework introduced by Regulation 2019/834 amending EMIR and amends an existing Q&A on novation. View Article |
ISDA: Another step to benchmark fallbacks
ISDA Chief Executive Officer Scott O'Malia confirmed ISDA continues to believe that the best possible strategy is to take action early before a cessation of LIBOR, or before any potential decline in LIBOR liquidity. View Article |
ESMA consults on future reporting guidelines under SFTR
ESMA opened a public consultation on draft guidelines on how to report securities financing transactions (SFTs). View Article |
ESMA updates its Questions and Answers on the Securitisation Regulation
The document clarifies how several specific fields in the templates should be completed. View Article |
PCS: Long awaited homogeneity RTS is out
At first glance, the Commission appears to have simplified somewhat the EBA’s original proposal without changing the underlying approach. View Article |
FSB publishes peer review of implementation of the Legal Entity Identifier
The report sets out four sets of recommendations to address the issues identified in the peer review and promote broader LEI adoption. View Article |
ESMA launches call for evidence on position limits in commodity derivatives
ESMA launches this call for evidence in the context of the reviews it must perform under MiFID II, together with the European Commission (EC), and is seeking stakeholders’ input to develop an informed view of the issues to be considered and addressed. View Article |
Proposed amendments to 2014 ISDA credit derivatives definitions for NTCEs – outstanding principal balance
This document contains proposed amendments to the 2014 ISDA Credit Derivatives Definitions to address issues relating to narrowly tailored credit events, focusing on the Outstanding Principal Balance definition. View Article |
ESMA updates its opinion on ancillary activity calculations
This updated opinion provides the estimation of the market size of commodity derivatives and emission allowances for the year 2018. ESMA has prepared those estimations based on data collected from trading venues as well as data reported to trade repositories under EMIR. View Article |
ESMA issues five positive opinions on national product intervention measures
ESMA issued five positive opinions on product intervention measures taken by the National Competent Authorities (NCAs) of Finland, Lithuania and Spain. View Article |
ESMA consults on periodic reporting rules for trade repositories
ESMA published guidelines setting out the information that should be periodically submitted by trade repositories (TRs) to ESMA. View Article |
ESMA registers Inbonis SA as credit rating agency
ESMA, the EU’s direct supervisor of credit rating agencies, registered Inbonis SA as a CRA under the CRA Regulation. View Article |
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Clients Union |
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ECA Journal 2/2019 – Fraud and Corruption/Ethics and Integrity
In this edition, the ECA focuses on the key issues related to fraud and corruption, the tools created in the fight against fraud and corruption, and actions undertaken and results achieved. View Article |
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Insurance |
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Commercial Risk Europe: Moody’s expects further insurance consolidation in Europe
Further consolidation is expected in the European insurance sector following a number of significant M&A deals in 2018, according to Moody’s Investors Service. Moody’s pointed to closed book deals on the life side, and restricted opportunities for organic growth on the P/C side. View Article |
Commercial Risk Europe: Swiss Re report highlights emerging risks for insurers
The latest Swiss Re Institute SONAR report has highlighted a number of key risks including digital technology’s clash with legacy hardware, new risks emerging from the spread of 5G mobile networks, increasingly limited fiscal and monetary policy flexibility, and genetic testing and its effects on the insurance industry. The report also examines ‘slowburner’ emerging risks such as the effects of climate change on public health. View Article |
Commercial Risk Europe: Insurance leaders ready to embrace change
Insurance leaders are ready for technological change, according to the latest findings from PwC’s Annual Global CEO Survey. View Article |
Insurance Europe: European policymakers must act to ensure insurers can fully contribute towards a sustainable Europe
Policymakers must take action ensure prudential capital requirements reflect the real risks insurers face; provide a clear taxonomy that avoids greenwashing; and ensure conduct rules give consumers real choice over investment products, warns Insurance Europe. View Article |
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Asset Management |
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EFAMA: Large net inflows into UCITS bond funds in March
The European Fund and Asset Management Association has published its latest Investment Fund Industry Fact Sheet, which provides net sales of UCITS and AIFs for March 2019. View Article |
Investment & Pensions Europe: Cost transparency poses threat to asset managers, says Moody’s
The UK’s newly launched investment cost reporting templates could hurt asset managers’ business models and financial stability, according to credit rating agency Moody’s. View Article |
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Corporate Governance/Accounting |
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ECA inspects EU trade defence instruments
The ECA is conducting an audit to assess how successful the EC has been in enforcing the EU’s trade defence policy. In particular, the ECA will examine whether decisions related to trade defence instruments are appropriate and whether EU action is conducive to proper and efficient implementation. View Article |
FRC´s transition pathway
The FRC has published its Plan & Budget 2019/20, with a commitment to push forward quickly its transition to the new regulator, the Audit, Reporting and Governance Authority. This work will progress alongside the extensive reform programme already in place in relation to the audit market. View Article |
ACCA: Integrated reporting – telling a company’s entire story, not just the positives
Insights into integrated reporting 3.0: The drive for authenticity report from ACCA identifies importance of integrated reporting, and the barriers it faces. View Article |
ECIIA: Europe’s first Corporate Governance House established in Brussels
The ECIIA and the European Confederation of Directors Associations (ecoDa) are setting up The Corporate Governance House. View Article |
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Political |
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Remarks by President Donald Tusk at the press conference of the informal dinner of EU heads of state or government
EU leaders met to assess the outcome of the European elections and to discuss what these results mean for the EU, as well as for nominating the new heads of the European institutions. View Article |
POLITICO: European election’s winners and losers
The main parties slipped back across the EU, while Eurosceptics and green parties had a good night. View Article |
Paul Goldschmidt: European Elections: first lessons for the EU and the UK
The European elections have delivered a better than expected verdict which should allow relaunching the European project on a new and stronger basis. The wishes of a large majority of citizens who have expressed their desire for “more Europe” must be met, reflects Goldschmidt. View Article |
Financial Times: The centre has held, but EU reform will be tricky
Relief that anti-establishment forces were held in check must be restrained by a realisation that the results do not augur especially well for a more coherent and effective EU, the FT's editorial acknowledges. View Article |
Fondation Robert Schuman: European Parliament: a new balance … but not Eurosceptic
The new European Parliament elected on 26th May, marks the end of bi-partism between the European People’s Party and the European Socialist Party and confirms a consolidation of a pro-European bloc with the Liberals and Greens. The Eurosceptic tidal wave that some had dreamed of did not occur. View Article |
POLITICO: Populist tide rises but fails to flood EU
Illiberal parties did well in France and Italy, Poland, Hungary and beyond. But overall no better than expected, and in some cases worse so. View Article |
SPIEGEL: The Right-Wing Populist Plan to Destroy Europe
Europe's right-wing populists haven't been stopped by the scandal in Austria. They are working hard to destroy the European Union from within its own institutions and the European elections may show how close they are to success. View Article |
Bloomberg: Brexit tears up British politics as Farage tops EU election poll
Brexit upended Britain’s established political order in European Parliament elections, with both the ruling Conservatives and the main opposition Labour Party scoring their worst results in decades. View Article |
EU-Rope: The EU election: Remain blew it
The EU election on 23 May was the one democratic event in which Remainers could have decisively demonstrated that the country doesn’t want Brexit, writes Jon Danzig. View Article |
POLITICO: After election, EU turns to fight over top jobs
EU leaders and party officials made opening maneuvers in what is expected to be a long, contentious battle over forming a majority coalition and doling out leadership positions including the European Commission presidency. View Article |
New Europe: Merkel and Macron disagree over choices for EU top jobs
Some days after the elections, heated discussions between the leaders of the EU’s 28 members are in full swing over who will succeed European Commission President Jean-Claude Juncker, with evident opinion clashes between the German chancellor Angela Merkel and the French president, Emmanuel Macron. View Article |
OMFIF: Weidmann ECB countdown
The probability is rising that Jens Weidmann, Bundesbank president since 2011, will replace Mario Draghi at the helm of the European Central Bank, even though it would be combined with many problems and risks, and a last-minute attempt to block him cannot be ruled out. View Article |
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Economic |
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Main results - Competitiveness Council (Single market and industry)
The Council held a policy debate on the long-term EU industrial policy strategy and on an ambitious approach to a competitive single market and adopted conclusions on each of these topics. View Article |
IMF: The Impact of US-China Trade Tensions
While the impact on global growth is relatively modest at this time, the latest escalation could significantly dent business and financial market sentiment, disrupt global supply chains, and jeopardize the projected recovery in global growth in 2019, according to estimates by IMF economists. View Article |
May 2019: Economic Sentiment up in the euro area, broadly stable in the EU
In May 2019, the Economic Sentiment Indicator (ESI) increased in the euro area (by 1.2 points to 105.1) and remained broadly stable in the EU (+0.2 points to 103.8). View Article |
Accountancy Europe: Corporate tax transparency
Lis Cunha, ActionAid’s EU Policy Officer on Tax Justice and Corporate Accountability, spoke about the good work being done voluntarily by companies and what needs to happen at EU level for mandatory requirements on tax transparency. View Article |
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Graham's tweets |
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© Graham Bishop
Banking Union