Financial Regulatory Developments Focus - 25 June 2014

In this newsletter, we provide a snapshot of the principal European, US and global financial regulatory developments of interest to banks, investment firms, broker-dealers, market infrastructures, asset managers and corporates.

DERIVATIVES

Secondary Legislation on Procedure for Imposing Fines and Periodic Penalty Payments on Trade Repositories

On 19 June 2014, secondary legislation on the procedure for penalties imposed on trade repositories by the European Securities and Markets Authority ("ESMA") was published in the Official Journal of the EU. The legislation, which came into force on 22 June 2014, sets out the procedures to be followed by ESMA in its power to impose fines and periodic penalty payments on trade repositories, deals with rights of defense and rights to be heard processes for trade repositories as well as limitation periods, access to files issues and calculation of periods, dates and time limits.

The legislation is available at: http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ:JOL_2014_179_R_0006.

REGULATORY CAPITAL

EBA Decision on Reporting by Competent Authorities to the EBA is Updated

On 19 June 2014, the European Banking Authority ("EBA") published an updated version of its decision (originally taken on 14 January 2014) on reporting by national regulators to the EBA. The decision relates to the implementing technical standards ("ITS") on supervisory reporting under the Capital Requirements Regulation. The reporting dates have been amended so that they are in line with the new dates of the ITS, following the European Commission adoption process. The decision describes what data the EBA would expect to receive from national regulators (i.e. the data that would be collected by national regulators from systemically important institutions) and specifies the criteria to identify these systemically important institutions.

The updated decision is available here: https://www.eba.europa.eu/documents/10180/16082/EBA+DC+090+rev1+%28Decision+on+Reporting+by+Competent+Authorities+to+the+EBA%29.pdf.

Federal Reserve Bank Issues FOMC Statement

On 18 June 2014, the Board of Governors of the Federal Reserve System ("Federal Reserve Board") issued a statement from the Federal Open Market Committee ("FOMC") which included economic projections from the FOMC meeting held from 17-18 June 2014.

The full text of the FOMC statement is available at: http://www.federalreserve.gov/newsevents/press/monetary/2014monetary.htm.

BANK PRUDENTIAL REGULATION

European Commission Consults on Contributions by Firms to Resolution Mechanisms

On 20 June 2014, the European Commission launched a consultation on the contribution of banks to the resolution financing arrangements under the Recovery and Resolution Directive ("RRD") and the...