On November 11, 2016, HM Treasury published a consultation paper
on rules for a financial market infrastructure special
administration regime. A form of special administration for certain
financial market infrastructure companies, excluding CCPs, was
introduced by The Financial Services (Banking Reform) Act 2013,
known as FMI administration. CCPs are already subject to the
special resolution regime in the Banking Act 2009. The entities
covered by the FMI administration regime are non-CCP operators of
payment systems and central securities depositories. HM Treasury is
seeking views on new rules, and modifications to existing general
insolvency rules, required to facilitate the effective functioning
of an FMI administration. The proposed rules outline the
application procedure for an FMI administration order and specify
the application of the Insolvency (England and Wales) Rules 2016
with modifications. An application for FMI administration must
demonstrate that the company is unable to pay its debts, likely to
be unable to pay its debts or that it would be just and equitable
(disregarding the objective of the FMI administration) to wind up
the company. The new and modified insolvency rules set out the
functions that the FMI administrator would be required to perform,
such as the provision of a statement of affairs of the company, and
the determination of the FMI administrator's remuneration.
Responses to the consultation are due by January 15, 2017. HM
Treasury will update rules following receipt of comments and will
then consult the Insolvency Rules Committee prior to the rules
being implemented in 2017. The UK Government plans to bring the new
FMI administration provisions into force concurrently with the FMI
The implementation of the mandatory exchange of initial and
variation margin for non-cleared OTC derivative trades in the EU
commenced on 4 February for financial counterparties with the
largest derivatives portfolios.
On February 9, 2017, HM Treasury published a paper summarizing responses to its consultation on the transposition of the revised MiFID and three draft statutory instruments to facilitate transposition.
We consider below the circumstances in which a person may hold an "unpaid vendor lien", the effect of such a lien following the Supreme Court case of Menelaou v Bank of Cyprus UK Ltd  EWHC 2656...
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