Derivatives & Structured Finance

Recent Articles

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  03/04/2025

  Luxembourg

  LuxSE unveils Euro MTF EM3S: unlocking new opportunities for professional investors

  I. IntroductionThe Luxembourg Stock Exchange (the LuxSE) has launched a new professional segment within its Euro MTF Market: the Euro MTF Specialist Securities Segment (the Euro MTF EM3S). This segment is exclusively available to professional investors and provides an alternative trading venue for financial instruments with stronger confidentiality requirements.The Euro MTF EM3S will admit to trading a wide range of securities (EM3S Securities) tailored for these investors. EM3S Securities may contain confidential data, proprietary information, commercially sensitive intellectual property...

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  11/12/2024

  Luxembourg

  CSSF Circular 24/867 to implement key amendments introduced by the Listing Act

  On 7 December 2022, the European Commission submitted a package of measures referred as the “Listing Act” (the Act). Its primary objective is to streamline and modernise the regulatory framework for companies seeking to list on public markets across the European Union (the EU), with the overarching goal of bolstering the competitiveness of EU capital markets and encourage broader participation by small and medium-sized companies.Following a provisional agreement reached between the European Parliament (the EP) and the Council on 1 February 2024, the Council of the European Union (the...

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  25/11/2024

  International

  Pre-hedging: IOSCO publishes delayed Consultation Report

  On 21 November 2024, the International Organization of Securities Commissions (“IOSCO”) published a consultation paper in response to concerns about the appropriateness of pre-hedging practices raised by various market participants, standard setters and national and supra-national authorities. In short, pre-hedging is the well-established practice by which dealers in certain markets look to hedge their exposure to anticipated client orders for a number of reasons, including to enable the dealer to take on the risk of the client order once confirmed, and to offer a competitive price.BackgroundEuropean...

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  23/10/2024

  Luxembourg

  How are Luxembourg se­cur­it­isa­tion vehicles affected by the NPL Law?

  On 12 July 2024, the Luxembourg Parliament adopted the draft bill No. 8185 (the NPL Law) transposing Directive (EU) 2021/2167 regarding credit servicers and credit purchasers entered into force on 28 December 2021[1]. The NPL Law provides an adequate framework for credit institutions to address non-performing loans (the NPLs) on their balance sheets and reduce a potential risk of future NPL accumulation. Additionally, it introduces new categories of service providers which will be subject to authorisation requirements under the law of 5 April 1993 on the financial sector, as amended.(To delve deeper...

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  18/10/2024

  EU

  The Council adopts the Listing Act

  On 8 October 2024, the Council of the European Union (the Council) adopted the package of measures known as the “Listing Act” (the Act), following the provisional agreement reached with the European Parliament (the EP) earlier this year. The Listing Act aims to make EU capital markets more attractive for small and medium-sized enterprises (SMEs).The Act made changes to:Regulation (EU) 2017/1129 of the EP and of the Council (the Prospectus Regulation),Regulation No 596/2014 of the EP and of the Council (the MAR), andRegulation No 600/2014 of the EP and of the Council (the MiFIR).Additionally,...

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  05/06/2024

  United Kingdom

  2024 UK EMIR Refit: finalisation of Q&A-style guidance

  On 30 September 2024, significant changes to the UK’s derivatives reporting framework will come into effect known as the “2024 UK EMIR refit”. Counterparties are in the process of finalising implementation projects to reflect the revised Article 9 reporting requirements under the UK version of the European Market Infrastructure Regulation (“UK EMIR”), having negotiated similar changes in relation to EU EMIR, which took effect on 29 April 2024. The UK Financial Conduct Authority (“FCA”) and Bank of England (“BoE”) (together the “Supervisory...

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