U.K. – FCA MiFID Position Limit

On 28 November 2017, FCA issued list of position limits on commodity derivatives contracts.

  • FCA opened gateway for firms to submit applications for exemption from position limit.
  • Already informed several participants who applied, that they have exemption approval.
  • Encouraged application as soon as possible so timely confirmation before 3 January 2018.
  • Limits apply on January 2018, to position held in spot month and to other months‘ periods.

Norway – NORFSA Derivative MiFID Test

On 27 November, NORFSA started system testing for derivatives in MiFID.

  • Trade venues, investment firms may participate in user acceptance system test.
  • For reporting of commodity derivatives (CPRS) under MiFID, from 29 November 2017.

Saudi Arabia – CMA Qualified Foreign Firm

On 23 November, SA CMA expanded foreign investment in listed security.

  • Meets CMA objectives to develop market and expand institutional investment base.
  • In line with the national transformation program and vision of Saudi Arabia in 2030.
  • Based on Financial Market System Regulations, Royal Decree (M / 30) 2/6 / 1424H,.
  • In accordance with the rules on investment of qualified foreign financial institutions.

Rule Content

  • The purpose of the rules is to set out the procedures, requirement and condition for
    registration of qualified foreign investors, with authority to invest in listed securities.
  • To specify their obligations, and the obligations of authorized persons in this regard.


  • Comments open for 14 day period, until 7 December 2017.

Germany – BaFin MiFID II Trade Reporting

On 20 November, BaFin issued notice on transaction reporting under MiFID.

  • Confirms compliance with ESMA guidelines under MiFID II re: supervisory practice.
  • Investment services providers, to report transaction completion from 3 January 2018.
  • Venues to keep data on order allocation, make available to supervisory authorities.
  • All trading venues, participants to synchronize clocks they use in business dealings.


  • MiFID II transaction reporting effective from 3 January 2018.

Marshall Islands Added to RRS Rules Library

Solutions Atlantic released the rule set for the Marshall Islands following aosphere LLP’s announcement including it in its Rulefinder covered jurisdictions list. Being able to release this new jurisdiction right on the heels of Rulefinder’s release shows the nimbleness of RRS’ RuleBuilder component. RRS RuleBuilder enables customers of RRS to customize or introduce customer-specific rules to their production system. RRS is the only solution on the market that puts this kind of power in the hands of its end users.

Hong Kong – SFC ETF, Listed Fund FAQs

On 21 November, HK SFC issued FAQ on exchange traded and listed funds.

  • Provide basic information to market practitioners for exchange traded/listed funds.

Main Questions

  • Require participating dealer to process creation/redemption request by third party.
  • ETF Manager responsible for ETF in exclusive interest of investors, watch operation.
  • Only SFC companies holding RQFII licenses, can launch RQFII physical A share ETF.
  • Functions of listing agent of SFC-ETFs may amount to carrying out Type 6 activities.
  • Closed-ended funds are acceptable under UT Code, subject to additional conditions.
  • ETFs may conduct securities financing trades for additional income, disclosure need.
  • Gave waiver from compliance Chapter 6.13 of UT Code for SEHK closed-ended fund.
  • Expect for consistency, the term ongoing charge used instead of total expense ratio.
  • Authorized listed CIS products inform investors by public announcement of dividend.

India – SEBI Securities Loans, Borrow

On 17 November, SEBI revised securities lending, borrowing mechanisms.

  • Securities lending and borrowing framework is amended based on feedback received.

Revised Limits

  • Intermediaries can introduce contracts of different tenures, from 1 day to 12 months.
  • Market wide position limit on SLB trades will be 10% of free-float capital of company.
  • No clearing member to have open position above 10% of market-wide position limits.
  • Client level position limit also not be more than 1% of the market-wide position limit.

Corporate Actions

  • Dividend amount is worked out and recovered, from borrower on book closure/record.
  • Positions of borrower proportionately adjusted so lender gets a revised share quantity.
  • Actions like bonus are foreclosed on ex-date, loan fee recovered pro-rata to borrower.
  • Offer contracts that will or will not be manditorily foreclosed, in event of an AGM/EGM.

Rollover facility

  • Lender seeking to extend existing loan/borrow position, permitted to roll-over position.
  • Total duration of contract including rollover to not exceed 12 months from original date.
  • Rollover to not permit netting of counter positions ie between the lend/borrow position.


  • Circular shall come into force from 1 January 2018.

E.U. – ESMA Derivative Position at TR

On 17 November, ESMA proposed calculation of EMIR derivative positions.

  • Consultation on guidelines, calculation of derivative position by trade repositories
    (TRs) authorised in EU under, European Market Infrastructure Regulation (EMIR).


  • ESMA supervises way trade repositories make data available to public authorities.
  • Should be of sufficient quality, to enable those authorities to monitor market risk.
  • ESMA has observed divergent inconsistent approaches to TR position calculations.
  • 7 authorised EU TRs, in 2017 TRs combined have received around 400mn reports.

New Guidelines

  • New guideline proposed to ensure consistency of position calculations across TRs.
  • Will provide information on aggregation of data fields, how TR will calculated this.
  • Calculation prior to provision of data to NCAs, including timing of calculation, the
    scope of the data used in the calculation, and also their calculation methodology.
  • Ensure consistency in relation to the collateral calculation for derivative positions.
  • TRs required to make information available to central bank where issue currency.
  • Proposed guideline also propose single report made available to the central bank.
  • Aggregate view of potential exposure between counterparties in currency of issue.


  • Comments to be received by 15 January 2018, final reports expected first half, 2018.

E.U. – ESMA MiFID Market Structures

On 15 November, ESMA issued updated sections 3, 4 and 5 to market structure FAQs.

  • Clarifies position of DEA clients accessing EU trading through sub-delegated DEA.
  • That firms need to be authorized as investment firm under MiFID to provide DEA.
  • And that mandatory tick size regime applies to both orders and quotes in

Solutions Atlantic Holds 4th Annual User Group Meeting

On 9 November, users of Regulatory Reporting System (RRS) gathered in NY and on the phone, as far away as India, to discuss the latest regulatory developments in the global shareholding disclosure space. It was the fourth annual meeting of the RRS User Group hosted by Solutions Atlantic. This year’s discussion focused on the classification of managed holdings and potential changes that might come about next year in the area of short selling in both the EU and Korea. On hand to discuss these and other relevant topics were regulatory experts from aosphere, LLP.

The second half of the meeting focused on the future. Users provided insight to their evolving business needs as it relates to the functionality of RRS and the team at Solutions Atlantic, proposed additional capabilities that should be considered for the 2018 release. Mitch Greess, had this to say about the session, “We truly value the input from our end users as it relates to the strategic direction of RRS.  Having firsthand feedback and insight to their day to day workflow as it relates to global shareholding disclosure enables the team here at Solutions Atlantic to continually deliver a product that is superior to others and continues to be relevant in the hand of our customers.”