Derivs - Regulation

The Financial Stability Board (FSB) has laid out what it believes are the critical elements required for the governance in the provision of unique product identifiers (UPI) for the derivatives market.

Financial counterparties in Switzerland had to start reporting derivatives trades to repositories on Monday, as required by the country's Financial Market Infrastructure Act.

The European Securities and Markets Authority (Esma) has published the final draft of the regulatory technical standard (RTS) giving details of which OTC derivatives will need to move to a trading venue when the Regulation on Markets in Financial Instruments (MiFIR) is implemented in January.

A subsidiary of the Association of National Numbering Agencies (ANNA) on Monday launched its offering for the creation of International Securities Identification Numbers (ISIN) for over-the-counter derivatives.

Citi has been fined $550,000 for data reporting violations on its internal swap contracts.

The MiFID II deadline stands. Firms who don't prepare to meet it won’t receive any grace or favour, the FCA has said. But the tough deadline of January 3, and continued lack of regulatory clarity, means firms that show they've done all they can should escape the worst effects.

European authorities have announced the start of work to identify a risk-free overnight rate, to be provided by the European Central Bank by 2020.

The International Swaps and Derivatives Association (ISDA) released new recommendations on how to manage the recovery and resolution of central counterparties (CCPs) on Monday. The organisation also encouraged regulators to not distract themselves with 'politically driven topics', citing the debate on whether certain clearing houses should be relocated to European Union member states after Brexit.

Chairman of the Commodity Futures Trading Commission (CFTC) Christopher Giancarlo on Monday reemphasised his commitment to global regulators' mutual recognition of foreign clearing house (CCP) supervisory regimes, without forcing “identical implementation”.

Market participants have a lot of work still to do in preparing data and systems for the introduction of MiFID II and MiFIR, and getting the right technology is only part of what they need to do, according to the chief executive of a fintech firm specialising in the area.

Derivatives counterparties in the US have made enormous strides towards compliance with the September 1 end date for a grace period on variation margin rules for uncleared swaps, a stark change from six months ago.

The European Commission said on Wednesday that it wants to bring down “remaining and new barriers” to integrating post-trade services across the European Union. It launched a public consultation, which will run until mid-November, and could be followed by legislative change next year.