In recent days we have become aware of significant developments concerning three different pieces of European legislation and have summarised these as follows.
Last week ESMA announced that it, on behalf of the 27 E.U. Member States (plus Croatia, Iceland, Liechtenstein and Norway), had approved co-operation arrangements with 34 global counterparts. Importantly, the list of global counterparts included the U.S. Securities and Exchange Commission, the Cayman Island Monetary Authority and the Jersey Financial Services Commission. For more information click here.
ESMA Technical Updates on Definition of an AIF & Reporting to Regulators
ESMA has published a Final Report on “Guidelines on key concepts of the AIFMD” (providing further guidance on the definition of an AIF) and a consultation paper on “Guidelines for AIFMD reporting obligations” (which clarifies the timelines and for whom reports will need to be submitted). To read more click here.
Reporting to the FCA
The European Short Selling Regulation introduced notification and disclosure obligations for investors who hold net short positions in certain financial instruments. On June 10th, the FCA is introducing a new registration form and requirements (for those who have not registered) and a form for notifications/disclosures. The registration and notification forms can be found on the FCA’s website. If you have already registered there is no need to re-register but you will need to use the new disclosure/notification forms.
In addition to this, ESMA has also released a report on the Short Selling Regulations. Recommendations from this report include changes to the way net short positions are calculated. The full ESMA report can be found here.
European Market Infrastructure Regulation (EMIR)
Within the next few months counterparties to derivative contracts (where one of the counterparties is European) will have to report all relevant transactions in derivatives to trade repositories (“TR”). In previous alerts, we have discussed the background to the European Markets Infrastructure Regulation (“EMIR”), the scope for counterparties and products, and the range of obligations that are being rolled out over a two year period. Click here for an outline on the practical steps that firms should take in order to meet the first of these, the reporting obligation.
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