Category Archives: News

On 15 June, HK SFC issued FAQs on disclosure of transaction data.

On 13 June, FR AMF issued updated guide for investment advisers.

• Follows AMF October 2017 issued guide to MiFID for investment advisers.

Updated Guide

• To support IAs in fulfillment of obligations, AMF updated MiFID 2 guide of October 2017.
• More than an overview of impact of MIF 2, the guide aims to serve as a tool for IAs.
• MiFID 2 transposed into French law by a law of 23 June 2016, in force 3 January 2018.
• For IAs, provisions similar to MiFID transposed by order of 22 June 2017 (no. 1107).
• Under the French IA (CIF) regime, the relevant provisions have been incorporated
  into the AMF General Regulation, these provisions, came into force on Jun. 8, 2018.
• French IA system is changing the organization of CIFs, it introduces new concepts.
• Eg concept of independent investment advice, and introduces new obligations for IAs.

Contents

• The MiFID 2 guide for IAs published by the AMF now contains eight thematic sheets.
• Seven thematic sheets of first version have been enhanced by the provisions of the
  AMF General Regulation, as well aspractical answers to frequently asked questions.
• 8th sheet aims to present, in non-exhaustive way, steps of the customer relationship.
• Sheets include impacts of MiFID 2 on IAs, enhancing IA authorization and monitoring
  procedure, rules of governance of the IA, and the prevention of conflicts of interest.
• Independent investment advice, governance of financial instruments, strengthening
  customer information, evaluation of suitability of products, and putting into practice

On 4 June, SA CMA adopted FAQ on investment by foreign firms.

• Rules on investment of qualified foreign financial institution in listed securities.
• Document aims to answer questions, which may be raised by foreign investors,
  licensed persons and interested parties, regarding rules governing investments.

On 1 June, BaFin issued form for notification of holding acquisition.

• German Banking Act (KWG) section 2c(1) requires BaFin, Bundesbank be notified
  of acquisition of significant/qualified interest in a securities trading company/bank.
• Information should be provided, in accordance with MiFID II delegated regulation.
• Voluntary form to assist with providing relevant information are on BaFin website.

On 31 May, MIAX replaced SPY pilot program with position limits.

• Amended Rule 307/309, Interpretations, Policies .01 to allow SPY Pilot Program
  terminate, establish position, exercise limits of 1,800,000 contracts on SPY options.
• Operative on 12 July 2018, so no lapse in time between pilot termination, new limits.

On 28 May 2018, MAS issued rules on short selling securities in Singapore.

• MAS rules improving the transparency on the short selling activities in Singapore.
• Follows, MAS January 2013 issued Singapore short selling disclosure rules.

Reporting of Short Sells

• From 1 October 2018, investors report short positions, short sell orders in securities.
• Improves transparency, enables investors to make informed decisions for trading.
• Under new rules, investors with short position above specific threshold to report
  the positions to MAS through new online Short Position Reporting System (SPRS).

MAS Dissemination

• MAS to publish weekly aggregated short positions of each security on Wednesday.
• Market participants can access SPRS before the mandatory reporting commences.
• Securities brokers and banks to flag all investor short sell orders to the exchange.
• Keep arrangement, for investors to inform brokers when submit short sell orders.
• SGX to consolidate short sell orders of each security and publish information daily.
• Rules effected through the Securities and Futures (Short Selling) Regulations 2018.

Further Information

• MAS issued consultation paper on short selling and responses to feedback received.

On 28 May 2018, ESMA further updated FAQs on the Short Selling Regulation (SSR).

• Amended FAQ 10.13 to further specify requirements on easy to borrow/purchase list.
• Listed conditions to meet requirement to have a locate arrangement, per A. 12(1)(c).
• No longer allows referring to “easy-to-borrow or purchase” list as locate arrangement.
• Easy-to-borrow or purchase list considered “easy to borrow or purchase confirmation”
• only where it includes assessment of maximum shares affected by possible short sale;
• Market conditions at time of providing list, including liquidity of the shares concerned.
• Assessment has to be reviewed for quantity, and any change in the market conditions.

On 14 May, ASIC sought feedback on proposed short selling rule.

On 9 May, AMF updated rules regarding transposition of MiFID II.

• AMF updating rules (instructions, positions and recommendations) to reflect impact
  of transposition of MiFID II, and introduce new regime for asset management firms.
• Separation of regime of portfolio management firms, from that of investment firms.
• Portfolio firms cannot just provide the portfolio management service for third party.
• Must be in addition to its UCITS or AIF management activity, subject to conditions.

Updated Documents

• AMF updated four documents to reflect this change, DOC-2008-03, on accreditation
  procedure for portfolio management firms, disclosure duties, passport.
• DOC-2016-01 on procedure for the approval of UCITS depository investment firms,
  the procedures for examining the specifications of other UCITS and AIF depositories.
• DOC-2009-24 on shareholding change in portfolio management firms, DOC-2017-10
  on prudential valuation of acquisitions, increases in qualifying holdings.

Effectiveness

• Changes from MiFID rules for funds are applicable from 9 May 2018.