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What’s next? THE EU PRESS RELEASE ON FIRST

The document aims to promote common supervi- sory approaches and practices in the application of EMIR. REGULATION NO 648/2012 IS AVAILABLE HERE. THE Q&A ISSUED BY ESMA IS AVAILABLE HERE. What’s next? The Q&A will be updated from time to time. ESMA will periodically review the Q&A to see if there is a need to convert some of the material into ESMA guidelines and recommendations.

market practice or other necessary regulatory requirements. Detailed changes and the actual proposals of the new Table of fields are further described in Annex- es IV and V of the Consultation Paper. THE CONSULTATION PAPER IS AVAILABLE HERE What’s next? ESMA will consider all comments received by 13 February 2015 and draft a Final Report. The Final Report will be submitted to the European Commission. The Commission has three months to decide whether to endorse ESMA‘s draft regulatory and implementing technical standards.   Miscellaneous - EU Council and Parliament publish proposals for Regulation on Money Market Funds Background On 4 September 2013, the European Commission published a proposal for a regulation of the Europe- an Parliament and of the Council on Money Market Funds (the “Regulation”). The Regulation was established on the back of various reports and recommendations issued since 2011 by institutions such as the Financial Stability Board (“FSB”), the European Systemic Risk Board (“ERSB”), the International Organisation of Securi- ties Commissions (“IOSCO”) and ESMA on money market funds (“MMF”), specifically in the context of shadow banking. In November 2012, the European Parliament adopted a resolution inviting the Com- mission to submit a proposal on Shadow Banking, but with a particular focus on the issue of MMF.

"EQUIVALENCE" DECISIONS FOR CENTRAL COUNTERPARTY REGULATORY REGIMES IS AVAILABLE HERE.

EMIR - Review of the technical standards on reporting under Article 9 of EMIR Background Article 9 of Regulation (EU) No 648/2012 of the Eu- ropean Parliament and of the Council of 4 July 2012 on OTC Derivatives, CCPs and Trade Repositories (“EMIR”) requires ESMA to develop draft regulato- ry (“RTS”) and implementing technical standards (“ITS”) in relation to the application of the reporting obligation for counterparties and CCPs. ESMA delivered its Final Report on 27 September 2012, three months after the publication of EMIR. The standards were endorsed, published and en- tered into force. The RTS supplementing EMIR were published in the Official Journal of the EU (“OJ EU”) on 23 February 2013 and entered into force on 15 March 2013. The ITS were published in the OJ EU on 21 December 2012 and entered into force on 10 January with effect from 15 March 2013 as well, since they depend on the RTS. Since the entry into force of the standards ESMA has worked on ensuring the consistent application of EMIR and its RTS and ITS. To enhance the quality of trade reports, ESMA has elaborated and consist- ently updated a set of Q&As on EMIR implementa- tion. As the solutions provided thereof are already expected to be followed by market participants, ESMA now proposes transforming some of these Q&As into Technical Standards to ensure a consist- ent and harmonised way of reporting. What’s in there? On 10 November 2014, ESMA published a consulta- tion paper containing Q&A with a view to reviewing technical standards on reporting under Article 9 of EMIR. This Consultation Paper introduces three categories of changes to the current Technical Standards: « Clarifications of data fields, their description or both; « Adaptations of existing fields to the reporting logic prescribed in existing Q&As or to reflect specific ways of populating them; « Introductions of new fields and values to reflect

EMIR - European Commission first

"equivalence" decisions for

central counterparty regulatory regimes Background On 4 July 2012, Regulation (EU) No 648/2012 on OTC derivatives, central counterparties ("CCPs") and trade repositories ("EMIR") was adopted. On 30 October 2014 the European Commission adopted its first "equivalence" decisions for the regulatory regimes of CCPs in Australia, Hong Kong, Japan and Singapore. A CCP established outside of the European Union may provide clearing services to EU clearing mem- bers and trading venues where it has been recog- nised in accordance with the conditions set out in Article 25 of EMIR. CCPs that have been recognised under the EMIR process will also obtain qualifying CCP ("QCCP") status across the European Union under Regulation (EU) No 575/2013 ("CRR"). Finally, CCPs that have been recognised under EMIR may be used by EU counterparties in order to satisfy their mandatory clearing obligations under EU law. What’s in there? The CCPs from one of these third countries will be able to obtain recognition in the EU, and can therefore be used by market participants to clear standardised OTC derivatives as required by EU legislation but will still be subject solely to the reg- ulation and supervision of their respective home jurisdictions. According to Vice-President Michel Barnier, this development demonstrates that the EU is willing to defer to the regulatory frameworks of third coun- tries if their objectives are in line with EU rules.

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