E.U. ESMA Issues Final Standards for Derivatives Data

On 10 July, ESMA issued rules on the aggregation of derivatives data.

  • Follows Jun. 2012, ESMA new rules for derivatives, CCPs and repositories.
  • RTS defines operational standards for aggregation and comparison of position data.
  • Is to ensure that market activity in derivatives traded on and off market identified.

Derivative Data

  • Rules set the frequency and timeliness of publication and how data is aggregated.
  • And details of aggregation for purposes of benchmarks’, commodities thresholds.
  • Adds clarification on publication of data by TRs on outstanding volumes of trades.
  • To avoid double counting across different trade repositories reporting under EMIR.
  • Provides ETDs reported only in cleared forms, as normally cleared in short time.
  • Trade repository is to publish aggregate position data on website on weekly basis.
  • Data includes CFDs, forward rate agreements, futures, forwards and spreadbets.
  • Sets CO, credit, currency, equity, interest rate and other as categories of derivative.
  • Venue of location is to specify if trade was off market and whether venue in the EU.
  • Also sets provisions for the reporting of LEIs depending on the venue of execution.

Effectiveness

  • Final RTS is sent to EC, which has three months to decide whether to endorse them.

Hong Kong and France – Mutual Recognition of Funds

On 10 July, the SFC  and the AMF have signed a Memorandum of Understanding  on Hong Kong-France Mutual Recognition of Funds (MRF).

The MOU will allow eligible Hong Kong public funds and French UCITS funds to be distributed to retail investors in each other’s market through a streamlined authorization process.

The MoU is the first agreement between Hong Kong and a member of the European Union which establishes the regulatory framework for distribution of eligible Hong Kong and French funds, which currently include general equity funds, bond funds and mixed funds.

It also stipulates a mechanism for regular dialogue and regulatory cooperation thus enabling the SFC and the AMF to fulfil their respective supervisory and regulatory mandates.

Further details can be found in the issued Circular and in the FAQs.