Welcome to our CPD weekly e-mail
What is this e-mail about?
(Full description) It is designed to keep you "knowledgeable and competent" in accordance with ESMA's Guidelines (details) to implement MiFID II. We update you on EU-level developments in regulation, market structure, economic figures and events that may influence investment products marketed by your firm. This is NOT investment research attempting to forecast security prices.
Content
We select articles from our database to produce a a "10-minute Read 'n Verify" e-mail of about 1500 (normal maximum 2000) words of content per week. Each article has a link that enables you to drill down into more detail - depending on your corporate subscription level. Moreover, you can browse our website - subject to your subscription - to broaden your understanding of a subject. or set up a personalised alert.
Verify
The Verify test enables you to check your comprehension of our choice of the top three issues this week.
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Basel Committee proposes revisions to minimum capital requirements for market risk
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Commission to propose SBBS framework: But Temporary Eurobill Fund is very different – with wider benefits
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Brexit in a Year? [Probably] not
At the foot of this e-mail is a link to a multiple choice test and you can use a "100% success" on the three questions to verifiy 10 minutes of CPD to your employer and/or professional qualification body.
We will take an Easter break next week - the next weekly will be published on the 12th April. Happy Easter to everyone from the Graham Bishop team!
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Articles from 22 March 2018 - 29 March 2018 |
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Banking Union |
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Basel Committee proposes revisions to minimum capital requirements for market risk
The BCBS issued Revisions to the minimum capital requirements for market risk for consultation. Improvements to the capital requirements for trading activities are a key component of the Basel Committee's overall efforts to reform global regulatory standards in response to the global financial crisis. View Article |
BCBS: Frequently asked questions on market risk capital requirements
This document sets out an updated set of responses to questions on the January 2016 market risk framework. View Article |
BCBS: Pillar 3 disclosure requirements: regulatory treatment of accounting provisions - consultative document
The Committee released a technical amendment on additional Pillar 3 disclosure requirements for those jurisdictions implementing an expected credit loss (ECL) accounting model as well as for those adopting transitional arrangements for the regulatory treatment of accounting provisions. View Article |
BCBS: Frequently asked questions on the Basel III standardised approach for measuring counterparty credit risk exposures
The Basel Committee on Banking Supervision has received a number of interpretation questions related to the Standardised Approach for measuring counterparty credit risk (SA-CCR), as published in March 2014. This document presents a set of frequently asked questions that relate to the SA-CCR. View Article |
BCBS discusses its work programme, current policy work, implementation of its standards, and initiatives to promote strong supervision
The Basel Committee on Banking Supervision published an outline of discussions at its meeting on 15-16 March 2018 in Basel and announced it will publish summaries of each meeting in future. View Article |
Bank of England: Update on the regulatory approach to preparations for EU withdrawal
The foundation of the Bank of England’s approach to preparations for EU withdrawal remains the presumption that there will continue to be a high degree of supervisory cooperation between the UK and the EU. View Article |
European Commission: A better deal for consumers: Cheap euro transfers everywhere in the Union and fairer currency conversions
The European Commission is proposing to make cross-border payments in euro cheaper across the entire EU. Under current rules, there is no difference for euro area residents or businesses if they carry out euro transactions in their own country or with another euro area Member State. View Article |
OMFIF: G20 debates 'hot' cryptocurrencies
The G20 meeting of finance ministers and central bank governors in Buenos Aires was good for cryptocurrencies. There had been some concern beforehand that onerous regulation would be announced, but the G20 deferred to the Financial Stability Board to study the topic more and report back in July. View Article |
Financial Times: Machine learning helps banks cut fraud and prep stress tests
While chatbots are the public face of artificial intelligence in financial services, bankers are more interested in how machine learning can be used to mitigate risk. View Article |
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Capital Markets Union |
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ESMA updates MiFID/MiFIR investor protection Q&As
The updated Q&As are on the topics of inducements (research) and information on costs and charges. The other four Q&As are new and relate to the topics of inducements, post-sale reporting and other issues. View Article |
ESMA updates its MiFID II Q&As on market structures and transparency topics
ESMA updated its Questions and Answers regarding transparency and market structures issues under the Market in Financial Instruments Directive and Regulation. View Article |
ESMA updates its Q&A on MiFID II commodity derivatives topics
ESMA updated its Questions and Answers on the Markets in Financial Instruments Directive and Regulation regarding commodity derivatives topics. View Article |
Financial Times: MiFID’s calm start belies research ‘devils in detail’
The Institutions are grappling with rules around carve-outs and inducements, writes Hannah Murphy. Big questions for managers include: what constitutes 'research', and how do you assess the value of its content? View Article |
ESMA updates Benchmarks Regulation Q&As
ESMA updated its Questions and Answers regarding the implementation of the Benchmarks Regulation. View Article |
ESMA harmonises position calculation for trade repositories
ESMA published guidelines on how trade repositories should calculate derivative positions under the European Market Infrastructure Regulation. View Article |
BOJ/ECB joint research project on distributed ledger technology
The joint research project “Stella” of the Bank of Japan and the European Central Bank studies the possible use of distributed ledger technology for financial market infrastructures. View Article |
ESMA consults on requirements for securitisation repositories
ESMA published two consultation papers on draft technical standards implementing the Securitisation Regulation. View Article |
ESMA finalises guidelines on how to report internalised settlement
ESMA published its final guidelines on how to report internalised settlement under the Central Securities Depositories Regulation. View Article |
ESMA updates the CSDR Q&As
The CSDR Q&As provide common answers to question regarding practical issues on the implementation of the new CSDR regime. View Article |
ESMA agrees to prohibit binary options and restrict CFDs to protect retail investors
ESMA agreed on measures on the provision of contracts for differences and binary options to retail investors in the European Union. View Article |
ESMA adds new Q&A on profit forecasts
ESMA updated its Questions and Answers document on prospectus related issues to include a new Q&A on profit forecasts. View Article |
Financial Times: Big banks develop new platform for bond issuances
JPMorgan, Bank of America and Citi are developing a new platform to overhaul the disjointed bond issuance process, hoping to solidify their control of the lucrative underwriting business that last year generated billions of dollars in fees for investment banks. View Article |
Bruegel: Capital Markets Union and the Fintech Opportunity
Fintech has the potential to change financial intermediation structures substantially. It could disrupt existing financial intermediation with new business models empowered by intelligent algorithms, big data, cloud computing and artificial intelligence. View Article |
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Market Abuse |
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ESMA updates its market abuse Q&As
The purpose of the Q&A document is to promote common supervisory approaches and practices in the application of MAR and its implementing measures. View Article |
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Market Structure |
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ESMA clarifies MiFIR quoting obligations for systematic internalisers
ESMA published its final report on proposed amendments to the Commission Delegated Regulation (EU) 2017/587 (RTS 1). View Article |
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Insurance |
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EIOPA: Application of the updated representative portfolios in 2018
As of the end of March 2018 the European Insurance and Occupational Pensions Authority will apply the updated representative portfolios for the calculation of the volatility adjustment to risk-free interest rates as announced on 18 December 2017. View Article |
Insurance Europe: Insight briefing on 2018 Solvency II review published
Insurance Europe has published an insight briefing on the upcoming Solvency II reviews, ahead of a European Commission hearing on changes to the regulatory framework that takes place. View Article |
Commercial Risk Europe: Blockchain initiative founders form legal entity
The Blockchain Insurance Industry Initiative (B3i) has been incorporated into a startup company by the group of global insurers and reinsurers that founded it. B3i Services AG in Zurich began life in 2016 as a collaborative initiative from Achmea, Aegon, Ageas, Allianz, Generali, Hannover Re, Liberty Mutual, Munich Re, SCOR, Swiss Re, Tokio Marine, XL Catlin and Zurich Insurance. View Article |
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Asset Management |
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AIMA: ESMA publishes its first report based on AIFMD reporting
ESMA has published is general “Trend, Risks and Vulnerabilities Report” (TRV) in relation to the second half of 2017. It includes, as a specific article, the first EU-wide evidence on the AIF markets, based on AIFMD-reporting data, covering around 60% of the AIFs managed and/or marketed by EU asset managers, collected at the end of 2016. View Article |
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Corporate Governance/Accounting |
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EU formally adopts amendments to IFRS 9
The European Union has published a Commission Regulation endorsing 'Prepayment Features with Negative Compensation (Amendments to IFRS 9)'. View Article |
EFRAG: Independent academic literature review on IFRS 9 and long-term investment
In the context of its investigation on the potential effect of IFRS 9 Financial Instruments on long-term investments, EFRAG commissioned a literature review to an independent international academic team. View Article |
Deloitte publishes guide to IFRS 15
Deloitte has issued 'Revenue from Contracts with Customers — A guide to IFRS 15'. As the IASB's new revenue standard is now effective, this detailed guide helps entities consider the impact of the new standard. In some cases, IFRS 15 will require significant changes to systems. View Article |
ECIIA: Suite of best practice papers for European banks
Internal audit can provide the boards and senior managers of European banks with distinctive and strategic assurance over their operations, according to a suite of position papers published by ECIIA. View Article |
EIOPA consults on corrections and amendments to the implementing technical standards on reporting and disclosure
The proposed corrections and amendments will improve the understanding of the current requirements, the consistent application of technical standards and facilitate the reporting and disclosure, as well as improve the quality of the information reported and disclosed. View Article |
FRC: Staff Guidance Note on bank lending and bond funded syndicates
The FRC has issued guidance for auditors who provide restructuring services to bank lending and bond funded syndicates, in which public interest entities that they audit are participants. View Article |
Accountancy Europe responded on IPSASB’s ED on Social Benefits
Accountancy Europe responded to the IPSASB on its ED on Social Benefits and encouraged the development of high quality financial reporting standards which are designed to address the specificities of the public sector environment. View Article |
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Grahams Articles, Comments & Speeches |
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Brexit in a Year? [Probably] not
In 365 days, Britain goes over the cliff edge of leaving the EU. When the `unknown arrangements’ become somewhat clearer during negotiations this summer, “the people” may well look at the implications and decide for themselves whether they want to proceed over the cliff, writes Graham Bishop. View Article |
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Temporary Eurobill Fund (TEF) |
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Commission to propose SBBS framework: But Temporary Eurobill Fund is very different – with wider benefits.
Graham Bishop has recently published Temporary Eurobill Fund: 30 FAQs to illustrate the radically different targets of the TEF that go far beyond the limited objectives of SBBS. Bishop analyses the four specific objections to SBBS by the debt managers, as well as their comments on “safe assets”. View Article |
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Economic |
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ECB: A minimal moral hazard central stabilisation capacity for the EMU based on world trade
This paper proposes a novel ‘export-based stabilisation capacity’ (ESC) for the EMU that allows for cross-border transfers in response to exogenous changes in the world market conditions in the various export sectors. View Article |
Bloomberg: Lagarde urges rainy-day fund for euro area to aid against shocks
IMF Managing Director Christine Lagarde urged Europe to pursue further integration, including on spending, saying a closer union of euro-area countries would help counter rising populism and protectionism globally. View Article |
ECB: Correspondent central banking model (CCBM) procedures for Eurosystem counterparties
The purpose of this brochure is to explain to the Eurosystem’s counterparties and other market participants involved in CCBM procedures how the CCBM works, and to give a general overview of the model’s main features. View Article |
European Council conclusions on jobs, growth and competitiveness, as well as other items
The European Council adopted conclusions on jobs, growth and competitiveness, as well as other items (Paris Agreement and Digital Europe). View Article |
March 2018: Economic Sentiment decreases in both the euro area and the EU
In March, the Economic Sentiment Indicator (ESI) decreased markedly in both the euro area (by 1.6 points to 112.6) and the EU (by 1.9 points to 112.5). While this is the third consecutive drop, the indicators remain at elevated levels. View Article |
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