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ESMA published 8 th updated Q&A on EMIR implementation Background The Q&A mechanism is a practical convergence tool used to promote common supervisory approaches and practices under Article 29(2) of Regulation (EU) No 1095/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Secu- rities and Markets Authority - ESMA), amending Decision No 716/2009/EC and repealing Commis- sion Decision 2009/77/EC Regulation, 15.12.2010, L331/84. What’s in there? On 21 May 2014 ESMA published the 8th updated Q&As on Implementation of the Regulation (EU) No 648/2012 on OTC derivatives, central counterpar- ties and trade repositories (EMIR). It provides re- sponses to questions raised by the public, market participants and competent authorities. The Q&As are aimed at national competent authorities to en- sure convergent supervisory activities. Amendments and modifications were made in the following sections: General questions: « Status of counterparties covered by AIFMD; « Authorised or registered AIFMs. OTC questions: « Calculation of the clearing threshold; « Funds, counterparties;

ISDA study on Central Clearing in the Equity Derivatives Market Background Under EMIR, ESMA is required to determine whether a clearing obligation should apply once a CCP has been authorised by a national compe- tent authority to clear certain classes of OTC de- rivatives. The ISDA study provides some insights on central clearing in the equity derivatives mar- ket. The study also considers criteria that should be assessed when determining whether a clear- ing mandate should apply in the EU. What’s in there? On 10 June 2014, ISDA published a study on central clearing in the equity derivatives market. The study describes the three segments of the equity derivatives market and their main char- acteristics. The three segments - that the mar- ket can be divided into - are the market for ex- change-traded contracts, the market for cleared, flexible exchange-like contracts and the market for OTC instruments. The study comes to the conclusion that the vast majority of the equity derivatives market is al- ready cleared, including all listed futures and options contracts and the more flexible products offered by services such as Bclear. However, the broad availability of clearing for OTC equity de- rivatives products will not develop overnight and is likely to remain limited in the near future. Any clearing obligation should according to the study take into account the unique features of listed and OTC instruments, as well as the specificities of individual products. An overly broad clearing mandate based on un- derlying, product type or settlement currency would be disruptive, potentially capturing con- tracts for which no clearing service exists. The study advises a granular approach to eval- uating whether products should be cleared, including detailed product taxonomy, a compre- hensive review of liquidity and analysis of prod- uct standardisation. What’s next? N/A.

ESMA published first registered social entrepreneurship fund manager (EuSEF) Background The EU Regulation No 346/2013 of the European Parliament and of the Council of 17 April 2013 on European social entrepreneurship funds (Eu- SEF Regulation), which entered into force 22 July 2013, requires ESMA to publish all EU-registered EuSEF managers, the funds it manages, and the EU Member States where these funds are market- ed. ESMA lists all EU-registered EuSEF funds on its website What’s in there? On 21 May 2014, ESMA published the first reg- istered EuSEF manager, the BonVenture Manage- ment GmbH, based in Munich, registered by Ger- many’s BaFin. The EuSEF Regulation, together with the European Venture Capital (EuVECA) regulation, is intended to provide a legal framework for cross-border capital raising for investment in small and medium-sized enterprises (SMEs) as well as social enterprises across EU Member States. What’s next? ESMA will continue to publish new registered EuSEF managers as required by the EuSEF Regulation. Commission published technical standards for the notification of EuSEF Regulation Background Article 17(1) of Regulation (EU) No 346/2013 of 17 April 2013, requires the competent authority of the home Member State of a European social entrepre- neurship fund (EuSEF) to notify host Member States and ESMA of events related to the passport of the managers of qualified social entrepreneurship THE ESMA LIST IS AVAILABLE HERE. THE EUSEF REGULATION IS AVAILABLE HERE.

« Intragroup transaction;

Public Register;

«

« Classification of non-EU Central Banks. CCP questions:

« Segregation and portability; « Organisational requirements;

Risk Committee;

«

« Prudential Requirements

What’s next? This document will be continually edited and up- dated as and when new questions are received.

THE DOCUMENT IS AVAILABLE HERE.

THE ISDA STUDY IS AVAILABLE HERE.

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