- On disclosure of takeover bid, and specific market abuse rules that apply to offerors.
- Press release information, notifications, inside information disclosure, stake-building.
On 15 January, ACNV authorized use of stock lending and short sales.
After process of public consultation where received suggestions and modifications.
Through RG 720 extended scope of the operations of lending negotiable securities.
Allowing use for conclusion of short selling operations and also regulated this area.
Operation of short sales has been incorporated into the regulations with the aim of
providing Argentine capital market with the greater dynamism, liquidity and depth.
In this regard, and weighing prudential criteria relating to preventing systemic risk,
Regulations and conditions under which operation must be performed are specified.
As well as guidelines that markets must consider, when are regulated for approval.
- Follows December 2017, CMVM issued reference data for trading in MIFID.
- Consultation on the draft CMVM regulations on collection of data, calculations and
the dissemination of information to ensure pre-trade and post-trade transparency.
- Comments to be received by 19 January 2018.
On 10 January, ISDA issued FAQs on swap contract status, post-Brexit.
- Covers topics including contractual points under ISDA documentation, choice of law,
jurisdiction and recognition of judgments, insolvency, access to EU financial market.
- European Markets Infrastructure Regulation, or EMIR, collateral, Settlement Finality
Directive, amendments to ISDA Master Agreement and transfer of existing contract.
EU Financial Markets
- Many member State rules do not allow third country firms without passport to enter
into derivatives with local counterparty, unless reverse-solicitation, local exemption.
- UK may request an equivalence decision per MiFID 2, which would permit UK firms
to provide investment services either to eligible counterparties or professional client.
- While UK regime should, objectively, be equivalent, no guarantee in practice that an
equivalence decision will be granted or even when such a decision would be granted.
CRD IV Passport Options
- In absence of agreement between UK and EU to extend CRD 4 passport for banking
services to the UK, UK credit institution would have to do one of 2 things, as follows.
- Either (i) provide banking services on a wholly unsolicited basis, or else on the basis
of narrowly defined local law exemptions, or (ii) would need to establish a subsidiary.
- And then obtain authorisation in an EU Member State to provide services in question.
- EU firms without UK branch, may still be able to carry out derivatives business in UK.
- If transitional period agreed, temporary permission grant overseas person exempted.
- Updated rules to operate from 23 January 2018, amend to Art 1(b), from 1 April 2018.
- 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.
- Published first MIFID position management controls for commodity derivatives.
- Ensure position management controls applied to commodity derivatives venue.
- EU States must ensure controls by investment firm or operator of trade venue.
- Firms, operators must inform NCAs of details of position management controls.
- NCA inform ESMA, which will publish database, with summaries of the controls.
- Powers that trade venue has, to monitor the open interest positions of persons.
- Access to information, documentation, about the size and purpose of a position.
- Require reduction or termination of position, on temporary or permanent basis.
- Require person to provide liquidity into market, at an agreed price and volume.
- How controls apply, and take account of nature and composition of firms/usage.
On 4 January, CNMV authorized organized trading facility per MiFID.
- CNMV authorized two MIFID organized trading facilities: CAPI OTF and CIMD OTF.
- Organized Systems of Contracting (SOC), also known as organized trading facility.
- OTF new kind of trading centers in which, under MIFID II, multiple purchase, sale
of interests of third parties interact to create contracts in fixed income, derivatives.
- Approved regulations include operating rules of these SOC in relation to categories
of instruments that may be negotiated, conditions of access to the trading systems.
- Also negotiation forms or systems, compensation measures, efficient settlement of
operations, negotiation transparency levels, suspension and exclusion mechanisms.
- CNMV confirmed regulations in accordance with MIFID II, implementing regulations.
- CAPI OTF to be managed by CM Capital Markets Brokerage, S.A. Securities Agency
and also the CIMD OTF, which will be managed by CIMD Sociedad de Valores, S.A.
- Both entities have requested and obtained the corresponding authorization for the
extension of their respective programs of activities to include management of SOC.
- Rule No. 614 of 2017, EU (Markets in Financial Instruments) Amendment Regs 2017.
- Amendment regs, other than regulation 26, shall come into operation on 3 January 2018.
- Regulation 26, of the amendment regulations, came into operation on 31 December 2017.
On 2 January, BaFin issued guidance on trade reporting under MiFID.
- Issued new rules on systematic internaliser, post-trade transparency under MiFID II.
- BaFin issued rules exempting SIs from duty to provide quotes on illiquid instruments.
- As of 3 January 2018, MiFIR introduces new rules for SIs, who must offer clients quotes.
- Applies to debt security, structured products, carbon credits, where no liquid market.
- Scope of SI duties, regarding illiquid non-equity instruments, specified in ESMA FAQs.
- Must make quote for illiquid non-equity instrument available to other clients or public.
- ESMA clarifies SI must disclosure price quote under MiFIR to other clients on request.
- National regulatory authority able to exempt systematic internalisers from obligation.
Eurex Clearing Waiver
- From 3 January 2018, Article 35 of MiFIR provides that a trading venue has the right to
non-discriminatory access to a central counterparty, if certain conditions can be met.
- Exchange-traded derivatives can be excluded until 3 July 2020, on request of a CPP.
- Bafin has granted Eurex Clearing AG such an exclusion with effect from 3 January 2018.
- Doesn’t have to apply MiFIR Art. 35 to exchange-traded derivatives until 3 July 2020.
- From 3 January 2018, new rules on post-trade transparency in transaction apply, MiFIR.
- Details on transactions at trading venue or over-the-counter (OTC) transactions with
financial instruments to be published in real time or as quickly as technically possible.
- But national authorities may, subject to conditions authorize publication at later date.
- May also allow certain information about the business to be published at a later date.
- BaFin issued general decree authorizing subsequent publication of transaction in non-
equity instruments in trading venues, operated by an investment services enterprise.
- Decree authorizing the later publication of OTC transaction in non-equity instruments.
- General decree, authorizing subsequent publication of equity instrument transactions.
- BaFin revokes a general ruling allowing later publication of transactions under section
31h of German Securities Trading Act, participants heard twice in October and December 2017.
- Above 3 general rulings allowing later transaction publication apply until 1 January 2019.
- Securities trading firms banks must comply with new requirements from 3 January 2018
when they apply for a business license from BaFin under MiFID II del reg see website.
- MiFID II and the BaFin exemptions and exclusions, are applicable from 3 January 2018.