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Week Ending 29 October 2020

26 October 2020: The European Securities and Markets Authority (ESMA) released a public statement that clarifies the application of the EU trading obligation for shares (STO) following the end of the UK’s transition from the EU on 31 December 2020. The statement outlines that the trading of shares with a European Economic Area (EEA) ISIN on a UK trading venue in UK pound sterling (GBP) by EU investment firms will not be subject to the EU STO. Therefore, those trades will not be subject to the EU STO under Article 23 of the Markets in Financial Instruments Regulation (MiFIR). This currency approach supplements the EEA-ISIN approach outlined in a previous ESMA statement of May 2019.

27 October 2020: The European Securities and Markets Authority (ESMA) has published an update to its March 2019 statement on the endorsement of credit ratings from the UK. The statement has been updated in order to provide clarity on whether endorsement can proceed following the end of the transition period on 31 December 2020. ESMA confirms that EU credit rating agencies (CRAs) will be able to endorse credit ratings elaborated in the UK after the end of the transition period.

27 October 2020: The European Securities and Markets Authority (ESMA) has published an update to its March 2019 statement on the endorsement of credit ratings from the UK. The statement has been updated in order to provide clarity on whether endorsement can proceed following the end of the transition period on 31 December 2020. ESMA confirms that EU credit rating agencies (CRAs) will be able to endorse credit ratings elaborated in the UK after the end of the transition period.

27 October 2020: The European Securities and Markets Authority (ESMA) has added UK venues to the list of third-country venues (TCTVs) in the context of the opinions on post-trade transparency and position limits under Directive 2014/65/EU (MiFID II) and Regulation (EU) 600/2014 (MiFIR). ESMA has also updated the related guidance to take into account feedback received from market participants on the identification of bonds and US Treasuries, as well as on the treatment of venues without a market identifier code (MIC).

Written by

Tyler Woollard is the founder of The Conduct Mind, a compliance consultancy firm. www.theconductmind.com Online shop https://bit.ly/37tDCXO

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