ESMA

EQS-News: Logwin 2023 with satisfactory development in a difficult market environment

Retrieved on: 
Wednesday, March 13, 2024

Grevenmacher (Luxembourg) – The Logwin Group achieved a satisfactory revenue and earnings performance in 2023 in a difficult market environment.

Key Points: 
  • Grevenmacher (Luxembourg) – The Logwin Group achieved a satisfactory revenue and earnings performance in 2023 in a difficult market environment.
  • At EUR 91.7m, the operating result (EBITA) in the 2023 financial year was below the previous year (2022: EUR 120.1m) as well.
  • By contrast, the Logwin Group's net result increased to EUR 80.2m thanks to an improved financial result and the reassessment of deferred tax assets.
  • The Logwin Group recorded a cash inflow from operating activities of EUR 107.9m (2022: EUR 169.6m).

ESA’s Joint Board of Appeal confirms ESMA’s decision to withdraw the recognition of Dubai Commodities Clearing Corporation

Retrieved on: 
Wednesday, February 7, 2024

ESA’s Joint Board of Appeal confirms ESMA’s decision to withdraw the recognition of Dubai Commodities Clearing Corporation

Key Points: 
  • ESA’s Joint Board of Appeal confirms ESMA’s decision to withdraw the recognition of Dubai Commodities Clearing Corporation
    The Joint Board of Appeal (“the Board”) of the European Supervisory Authorities (EBA, EIOPA and ESMA – the ESAs) unanimously decided to dismiss the appeal brought by Dubai Commodities Clearing Corporation (“DCCC”) against the European Securities and Markets Authority (“ESMA”) and to therefore confirm the ESMA decision to withdraw its recognition.
  • The application was brought in relation to ESMA’s Decision, adopted under Article 25p of Regulation (EU) No 648/2012 (EMIR), to withdraw the recognition of DCCC as a Tier 1 third-country central counterparty (CCP).
  • The Board had decided to suspend the ESMA decision in October 2023 until the outcome of the appeal is concluded.
  • With today’s publication, the suspension has expired and the ESMA decision has become fully operational.

EBA consults on targeted amendments to the prudent valuation framework

Retrieved on: 
Saturday, February 3, 2024

EBA consults on targeted amendments to the prudent valuation framework

Key Points: 
  • EBA consults on targeted amendments to the prudent valuation framework
    The European Banking Authority (EBA) today published a consultation paper on targeted amendments to the Regulatory Technical Standards (RTS) on prudent valuation, aiming to promote a more harmonised application of the RTS and to reduce the observed variability of additional value adjustments (AVAs) under the core approach, as well as to set the rules for the application of the prudent valuation framework in extraordinary circumstances.
  • The RTS on prudent valuation set out the requirements that institutions operating in the EU should apply for the valuation of their fair-valued assets and liabilities for prudential purposes.
  • Building on a review of the implementation of those requirements since 2016, the consultation paper proposes targeted amendments to the RTS to promote best practices and ensure a more harmonised application of the RTS.
  • In addition, the consultation paper contains a proposal for a framework for ‘extraordinary circumstances’ for prudent valuation, including conditions for determining the presence of extraordinary circumstances, and rules for the calculation of AVAs under those circumstances.

ESAs publish first set of rules under DORA for ICT and third-party risk management and incident classification

Retrieved on: 
Saturday, February 3, 2024

ESAs publish first set of rules under DORA for ICT and third-party risk management and incident classification

Key Points: 
  • ESAs publish first set of rules under DORA for ICT and third-party risk management and incident classification
    The three European Supervisory Authorities (EBA, EIOPA and ESMA – the ESAs) published today the first set of final draft technical standards under the Digital Operational Resilience Act (DORA) aimed at enhancing the digital operational resilience of the EU financial sector by strengthening financial entities’ Information and Communication Technology (ICT) and third-party risk management and incident reporting frameworks.
  • RTS on ICT risk management framework and on simplified ICT risk management framework
    The draft RTS on ICT risk management framework identify further elements related to ICT risk management with a view to harmonise tools, methods, processes and policies.
  • The RTS identify the key elements that financial entities subject to the simplified regime and of lower scale, risk, size and complexity would need to have in place, setting out a simplified ICT risk management framework.
  • The RTS ensure the ICT risk management requirements are harmonised among the different financial sectors.

ESAs recommend steps to enhance the monitoring of BigTechs’ financial services activities

Retrieved on: 
Saturday, February 3, 2024

ESAs recommend steps to enhance the monitoring of BigTechs’ financial services activities

Key Points: 
  • ESAs recommend steps to enhance the monitoring of BigTechs’ financial services activities
    The European Supervisory Authorities (EBA, EIOPA and ESMA – the ESAs) today published a Report setting out the results of a stocktake of BigTech direct financial services provision in the EU.
  • The Report identifies the types of financial services currently carried out by BigTechs in the EU pursuant to EU licences and highlights inherent opportunities, risks, regulatory and supervisory challenges.
  • The ESAs will continue to strengthen the monitoring of the relevance of BigTech in the EU financial services sector, including via the establishment of a new monitoring matrix.
  • However, the ESAs have yet to observe their presence in the market for securities services.

ESMA consults on reverse solicitation and classification of crypto assets as financial instruments under MiCA

Retrieved on: 
Monday, January 29, 2024

ESMA consults on reverse solicitation and classification of crypto assets as financial instruments under MiCA

Key Points: 
  • ESMA consults on reverse solicitation and classification of crypto assets as financial instruments under MiCA
    The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, today publishes two Consultations Papers on guidelines under Markets in Crypto Assets Regulation (MiCA), one on reverse solicitation and one on the classification of crypto-assets as financial instruments.
  • Consultation paper on guidelines on reverse solicitation
    In this consultation, ESMA is seeking input on proposed guidance relating to the conditions of application of the reverse solicitation exemption and the supervision practices that National Competent Authorities (NCAs) may take to prevent its circumvention.
  • Consultation paper on guidelines on conditions and criteria for the classification of crypto-assets as financial instruments
    In this consultation paper, ESMA is seeking input on establishing clear conditions and criteria for the qualification of crypto-assets as financial instruments.
  • This initiative, which follow on from previous work by ESMA, is aimed at bridging the MiCA regulation and the Markets in Financial Instruments Directive II (MiFID II) and ensuring consistency across the EU.

ESAs publish first set of rules under DORA for ICT and third-party risk management and incident classification

Retrieved on: 
Friday, January 19, 2024

ESAs publish first set of rules under DORA for ICT and third-party risk management and incident classification

Key Points: 
  • ESAs publish first set of rules under DORA for ICT and third-party risk management and incident classification
    The three European Supervisory Authorities (EBA, EIOPA and ESMA – the ESAs) published today the first set of final draft technical standards under the DORA aimed at enhancing the digital operational resilience of the EU financial sector by strengthening financial entities’ Information and Communication Technology (ICT) and third-party risk management and incident reporting frameworks.
  • RTS on ICT risk management framework and on simplified ICT risk management framework
    The draft RTS on ICT risk management framework identify further elements related to ICT risk management with a view to harmonise tools, methods, processes and policies.
  • The RTS identify the key elements that financial entities subject to the simplified regime and of lower scale, risk, size and complexity would need to have in place, setting out a simplified ICT risk management framework.
  • The RTS ensure the ICT risk management requirements are harmonised among the different financial sectors.

Will Regulators and AI Lock Horns? Contentworks, an agency specialising in financial services marketing, has rounded up opinions from top regulators.

Retrieved on: 
Tuesday, January 16, 2024

LIMASSOL, Cyprus, Jan. 16, 2024 /PRNewswire-PRWeb/ -- Artificial Intelligence (AI) is already widely utilised by the finance sector and the market size of AI in fintech is projected to grow from $44.08 billion in 2024 to $50.87 billion by 2029. But, and it's a big but, AI has also garnered the attention and scrutiny of regulators. Many are concerned about how the technology will be used within a compliant framework. Here's a deep dive into what regulators have said so far and what we can expect going forward.

Key Points: 
  • Contentworks, an agency specialising in financial services marketing, has rounded up opinions from top regulators.
  • This can result in unpredictable outcomes, many of which could be detrimental to the stability of the financial markets.
  • While establishing standards is the responsibility of regulators, maintaining ethical and clear communications with customers is the duty of financial services providers.
  • 45% of financial services providers across Europe lack an AI ethics framework and 38% have no clear demarcations for accountability.

ESMA explores risk exposures to real estate in EU securities markets and investment funds

Retrieved on: 
Sunday, January 14, 2024

ESMA explores risk exposures to real estate in EU securities markets and investment funds

Key Points: 
  • ESMA explores risk exposures to real estate in EU securities markets and investment funds
    The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, is publishing its first analysis of the exposures the EU securities and markets and asset management sector have to real estate.
  • Credit risk indicators for real estate companies have started to show signs of deterioration and liquidity mismatches remain a key vulnerability for real estate investment funds.
  • Valuation declines were also observed for listed real estate firms and real estate investment trusts along with increased trading activity and securities lending activity for these market participants.
  • Understanding the channels through which real estate markets affect financial markets and the wider economy is a key concern for policymakers and regulators.

ESMA and NCAs to coordinate supervisory activities on MiFID II pre-trade controls

Retrieved on: 
Sunday, January 14, 2024

ESMA and NCAs to coordinate supervisory activities on MiFID II pre-trade controls

Key Points: 
  • ESMA and NCAs to coordinate supervisory activities on MiFID II pre-trade controls
    The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has launched a Common Supervisory Action (CSA) with National Competent Authorities (NCAs), with the objective of assessing the implementation of pre-trade controls (PTCs) by EU investment firms using algorithmic trading techniques.
  • PTCs are used by investment firms to carry out checks at order entry to limit and prevent sending erroneous orders for execution to trading venues.
  • Following the May 2022 flash crash, ESMA and NCAs have focussed their attention on the implementation of PTCs in the EU, gathering evidence through questionnaires submitted to a sample of EU investment firms.
  • As a follow up, ESMA and NCAs have decided to launch a CSA with the goal of gathering further and more detailed insights on how firms are using PTCs across the EU.