In this week’s newsletter, we provide a snapshot of the principal US, European and global financial regulatory developments of interest to banks, investment firms, broker-dealers, market infrastructure providers, asset managers and corporates.
Bank Prudential Regulation & Regulatory Capital
European Banking Authority Publishes New Taxonomy for Supervisory Reporting
On September 9, 2015, the European Banking Authority published the new taxonomy for national regulators to provide data to the EBA under the Implementing Technical Standards on supervisory reporting. The new taxonomy will be used for the first reports under the revised Liquidity and Leverage Ratio requirements and includes revised reporting structures for leverage ratio and new parallel reporting structures for liquidity ratio for banks.
The EBA announcement and taxonomy is available at:
Revised List of Validation Rules for Supervisory Reporting Issued by European Banking Authority
On September 9, 2015, the EBA published a revised list of validation rules for submitting supervisory reporting data. The rules detail the standards and formats that are to be used for submissions of data by national regulators under the Capital Requirements Directive IV. The revised list displays the rules that have been deactivated due to technical issues or incorrectness.
The EBA announcement is available at: http://www.eba.europa.eu/-/eba-issues-revised-list-of-its-validation-rul-7.
Derivatives
US Commodity Futures Trading Commission Approves Final Regulation Requiring Certain Participants to be Members of a Registered Futures Association
On September 10, 2015, the US Commodity Futures Trading Commission issued a final rule requiring all registered introducing brokers and commodity pool operators, and certain commodity trading advisors, to become and remain members of a registered futures association. Currently, the only registered futures association is the National Futures Association. Certain commodity trading advisors who qualify for an exemption from registration as a commodity trading advisor under CFTC regulation 4.14(a)(9) are not subject to this requirement. Compliance with the final rule is required by December 31, 2015.
The press release is available at: http://www.cftc.gov/PressRoom/PressReleases/pr7225-15 and the final rule is available at: http://www.cftc.gov/ucm/groups/public/@newsroom/documents/file/federalregister091015.pdf.
US Commodity Futures Trading Commission Issues Order of Temporary Registration as a Swap Execution Facility to Bitcoin Options Exchange
On September 10, 2015, the CFTC announced the approval of the application of LedgerX LLC for temporary registration as a swap execution facility. LedgerX is a Delaware limited liability company and wholly-owned subsidiary of NYBX Inc., a corporation based in Delaware. Following the approval for temporary registration, the CFTC will undertake a further substantive review of the company's application for full registration. If approved, LedgerX would be the first federally regulated bitcoin options exchange and clearing house that would list and clear fully-collateralized, physically-settled bitcoin options for the institutional market.
The press release is available at: http://www.cftc.gov/PressRoom/PressReleases/pr7226-15 and the CFTC staff letter is available at: http://www.cftc.gov/ucm/groups/public/@lrlettergeneral/documents/letter/15-49.pdf.
To read this article in full, please click here.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.