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.
- 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.
- 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.
- 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.
- 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 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.