Category Archives: News

On 25 January 2018, FCA updated list of position limits on commodity derivative contract.

• Position limits on further commodity derivative contract which is traded on a UK venue.
• Apply to positions held in spot month, other months’ periods for Swiss Baseload Power
  contract (Ch Phy BLSws), traded on the Organised Trading Facility, of GFI Brokers Ltd.
• Above position limits will apply from 31 March 2018, to Swiss Baseload Power positions.

On 23 January, AFM issued report on improvement by alternative funds.

• In 2017, AFM conducted research into compliance with legal rules regarding sound
  business conduct, governance and separation of assets among 12 managers of AIF.
• Research finding show that there is substantial room for improvement in this group.

Main Outcomes

• Show 6 of investigated managers only manage firms falling outside AIFM Directive.
• AIFM license of these managers is, or is expected to, expire, also shows that there
  is substantial room for improvement among the other managers in research group.
• In respect of issues of sound business operation, governance and asset separation.

Key Findings of the Study

• Risk management in many insufficient, outsourcing with large number of managers
  doesn’t comply with rules, no custodian was appointed by one of the administrators.
• In some cases doubt about effectiveness and structure of the compliance functions.
• Policy conflict of interest are often incomplete, MLTF compliance must be improved.

Best Practices

• Report also contains best practices that AFM has drawn up as a result of the report.
• Best practices can help managers further improve quality of operation, governance.
• Individual results of the studies fed back to investigated managers and, where they
  didn’t comply with requirements, AFM applied formal, informal measures to ensure.
• AFM expects other managers to take note of the findings of this research, and the
  best practice and, where necessary, implement improvements in their organization.

Next Steps

• In view of findings, the AFM intend to carry out similar investigations in the coming
  years with other management companies holding a legally converted AIFM license.
• It will also assess whether managers started working on findings and good practice.

AIFM Permit

• AFM also calls on managers to assess whether they perform activities under AIFMD.
• If this not the case for a period of 12 months or more, they are requested to hand
  in their permit on own initiative and the AFM will actively monitor this in the future.

On 22 January 2018, BaFin issued draft commodity derivative position limits for hearing.

• PXE Czech future, base; Phelix power future, option, base; Phelix power future, peak.
• BaFin will accept comments on the draft position limits set out above by 5 February 2018.

On 19 January 2018, ESMA issued updated transparency calculations (TTC) for MiFID.

• Extended version of TTCs for equity, bond instruments, adding further instruments.
• New instruments TTC alongside those issued on Dec. 22, 2017, remain unchanged.
• TTC for equity instrument traded for first time between Sep. 13, 2017 Jan. 2, 2018.
• Bond instruments (except ETCs, ETNs), for first time Nov. 1, 2017, to Jan. 2, 2018.
• Calculations of newly added instruments, were provided by the national authorities.
• Establish applicable transparency parameters for instrument listed pre Jan. 3, 2018.

On 16 January, ESMA issued practical guide on transparency directive.

• Summarises main rules, practices applicable across EEA in relation to notifications
  of major holding under national law in accordance with the Transparency Directive.
• Intended as an aide to market participants and may be helpful to shareholder with
  notifying obligations under national law in accordance with Transparency Directive.
• Part I of guide sets out summary of main rules and practices in relation to making,
  and publishing notifications of major holdings, under national law, under Directive.
• Part II presents key data, information on notification thresholds, triggering events.
• Also deadline for learning of triggering event, deadline for making a notification as
  well as permitted channels, format for filing of such, deadline for notification issue.

On 17 January 2018, AMF issued amended guide on research funding under MiFID II.

• AMF made 2 amendments to the guide on investment providers research funding.
• One clarifies conditions under which research in context of a primary market issue
  can be minor non-monetary benefit, here research must be available to investors.
• Other taking into account the FAQ issued by the EC on 26 October 2017.
• FAQs provide clarifications in case where research provider not subject to MiFID II.

On 15 January, BFSMA issued FAQs on takeover bids under MAR.

• 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.

Short Sales

• 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.

On 11 January, CMVM proposed rules to implement MIFID/MIFIR.

• 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.

Effectiveness

• Comments to be received by 19 January 2018.

On 10 January, ISDA issued FAQs on swap contract status, post-Brexit.