U.S. – CFTC ICE German Sovereigns

On 13 December, CFTC proposed relief to ICE hold German sovereigns.

  • Exemptive order to derivatives clearing organizations ICE Clear Credit/US/Europe.
  • To invest futures and swap customer funds in French and German sovereign debt.

Scope of Investment

  • Expanded the lists of counterparties and depositories that the ICE DCOs may use.
  • CEA S. 4d CFTC Reg 1.25(a)2 sets out permitted investments, for DCOs to invest.
  • Section 4d limits investment of customer money to obligations of US Government
    general obligations of State or of any political subdivision thereof, and obligations.


  • CFTC sought comments for 30 days after proposal is published in federal register.

E.U. – ESMA MiFID Registers January 2018

On 8 December, ESMA update provision of MiFID registers in January 2018.

  • ESMA will provide updated register information, for requirements of MIFIR/MiFID.

Interim Register Information

  • Launch on 3 January 2018 will update existing MiFID I registers and supply new ones.
  • ESMA compiles registers based on data provided by EEA from the 3 January 2018.
  • Working on new release of registers in Q1 2018, until then provide interim solution.
  • Interim publication every 2 weeks, of latest register information, in an excel format.

List of Affected Registers

  • Regulated markets; Multilateral Trading Facilities; NEW Organised trading facilities.
  • Systematic Internalisers; NEW Approved Publication Arrangements; NEW Consolidated
    Tape Providers; NEW Approved Reporting Mechanisms; Suspension/Restorations (SARIS).
  • Central counterparties will become obsolete and removed from the ESMA publication.
  • Shares admitted to trade on EU markets, replaced by FIRDS Transparency 3 January 2018.
    ESMA will monitor data submitted, and may make the files available, more frequently.

U.S. – SEC Form N-PORT Filing Rules

On 8 December,  SEC revised approach to Form N-Port filing requirement.

  • Amended pending rule for investment companies to file form N-Port electronically.
  • Follows SEC November 2016 liquidity risk reporting rules with Forms N-PORT.
  • Report information on their monthly portfolio holdings in a structured data format.
  • Pending SEC continuation of announced review, to strengthen EDGAR and systems.
  • Raise sound data security practices, protocols for sensitive, non-public information.

Delayed Reporting

  • For the first 9 months, after the prior Form N-Port compliance date of June 1, 2018.
  • Require larger fund groups to maintain the form N-Port information in own records.
  • Make information available to SEC on request, in lieu of filing the form with EDGAR.
  • Small fund groups continue to benefit from filing start date year after large groups.

In SEC Cyber-Review

  • SEC initiated an assessment of cybersecurity risk profile and approach to mitigation.
  • Included focused review and uplift of EDGAR system, which is used by Form N-Port.
  • Assess SEC data needs will include how and when it collects market-sensitive data.

New Effective Date

  • Filing of Form N-Port via EDGAR system will begin April 2019, for larger fund groups.
  • Begin in April 2020 for smaller fund groups, retain one year delay from large groups.
  • Ensure investors do not lose access to data, requiring funds to continue public filing.
  • Report with existing form N-Q, until begin filing reports on form N-Port using EDGAR.

Sweden – SFI Trade Reporting for MiFID

On 5 December, SFI issued notice on MiFID trade reporting, orders, clock.

  • Confirms compliance with ESMA guidelines under MiFID II, re: supervisory practice.
  • Guidelines on transaction reporting, registration of order and clock synchronization.
  • Guidelines apply to investment firms, trading venues, ARMs, competent authorities.
  • Designed to ensure the uniform application of the requirements, focus especially on
    establishing transaction reports, registering order data, for each of individual fields.
  • Venues to keep data on order allocation, make available to supervisory authorities.
  • All trading venues, participants to synchronize clocks they use in business dealings.


  • New guidelines introduced on 3 January 2018.

Spain – CNMV Trade Reports MIFID

On 7 December, CNMV updated trade reporting guide for MiFID/MiFIR.

  • CNMV updated operational communication guide for MiFIR, first issued September 2017.
  • Revisions included more detailed clarification on remission of files from the CNMV.
  • Changes in validation error codes at file level; controls at the entity and file level.
  • New error code, and new value in different states of operation, in file from CNMV.
  • CNMV guide complemented ESMA report instructions, updated on August 8, 2017.
  • Develop rules of operational nature for the interaction between entities and CNMV.

Reporting Requirement

  • MiFIR requires from 3 January 2018, investment firms and banks to report to CNMV.
  • Report complete and exact data of operations executed with financial instruments.
  • Submit data as soon as possible or at the latest by close of the next business day.
  • The standard extended the type of instruments on which there is a need to report.
  • Guide aims to improve understanding of system, publicize operational functioning.


France – AMF MiFID Position Limits

On 6 December, AMF issued rules for position limits on Euronext and Powernext.

  • Covers position limits under MiFID/MiFIR for commodity derivatives traded on Euronext etc.


  • Sets limits for Wheat, Rapeseed, Corn, Canola, UAN 30 nitrogen solution as traded in lots.
  • Size of lots depends on open position, maturity at deadline and 21 days before a deadline.


  • Sets limits for different types of gas traded under PEG Nord, TTF, GPL, NCG, PSV, CEGH, ZTP.
  • Limit varies by size of lots, open position and the country of destination for the gas product.

Singapore – SGX Shorter Settlement Cycle

On 29 November, SGX proposed shorter period for securities settlement.

  • Revisions impact clearing and settlement of securities in Singapore stock market.
  • Seek reduction of systemic risk, align clearing, settlement process to global ones.
  • They will also strengthen Singapore’s position as an international financial center.


  • Shorter securities settlement cycle of two days (T+2) instead of three (T+3) now.
  • Reduced counterparty risk, making available securities, funds earlier for investors.
  • Simultaneous securities and money settlement, reducing risk of current time lag.
  • Enhancement for various settlement process, for example, CDP’s cash payments.
  • CDP will cash-settle on intended settlement day + 6 business days (ISD+6), any
    trade with a failed delivery that is not resolved by then; as with global standards.
  • Investors having shares in CDP direct accounts have option of giving their broker
    visibility over specific holdings, by creating a broker-linked balance with holdings.
  • Broker can then offer a personalized services like portfolio management services.


  • Targeting to introduce change by H2 2018, public consultation is open to 15 January 2018.

Sweden – SFI Commodity Limits for MiFID

On 30 November, SFI issued proposed commodity derivatives position limits.

  • On 3 January 2018, new rules on commodity derivative (Securities Market Act) apply.
  • According to new rules, SFI to determine position limits for commodity derivatives.

Nordic Power Contract

  • Nordic power derivatives are traded on Nasdaq Stockholm in such volumes that FI
    will determine their position limit using the method contained in EC Reg 2017/591.

Fixed position limits

  • In illiquid derivatives’ case, fixed limits of 2,500 items, 2.5mn securities, proposed.

Final Decision

  • Position limits finally decided when SFI adopts proposed regulations, in December 2017.


  • New rules to apply from 3 January 2018, at the same time as the EU MiFID provisions.

Germany – BaFin Position Limits for MiFID

On 29 November, BaFin issued list of MiFID commodity derivative limits.

  • As part of the implementation of MiFID II, position limits on commodity derivatives.
  • Will apply from 3 January 2018, and imposed upper limits for holding of commodities.
  • BaFin is competent authority of all commodity contracts traded on German market.

Contract Features

  • No individual firms or groups allowed to consolidate positions exceeding thresholds.
  • Commodity derivatives may be sub-categorized into either liquid or illiquid contract.
  • BaFin sets individual position limits for liquid contracts, on basis of market features.
  • For illiquid contract, standard limit of 2,500 tradeable unit, 2.5mn securities applies.
  • BaFin also published list of the currently intended position limits for liquid contracts.
  • The contents of this list of position limits is not binding and can change at any time.


  • BaFin will issue final limits general decree on 3 January 2018, will take effect next day.

U.S. – CBOE Position Limits on ETFs

On 29 November, CBOE proposed position limits on exchange products.

  • Amended interpretation and policy .07 of exchange rule 4.11, on position limits.
  • To increase position limits for options on certain exchange traded products ETP.


  • SEC proceedings to determine whether to approve or disapprove proposed rule.
  • Comments in 21 days after publication, rebuttal comments are due in 35 days.