Securities and derivatives

Recent Articles

  •  
    07/06/2024

    ESMA issues first formal guidance on use of AI in retail financial services

    The European Securities and Markets Authority (ESMA) recently released a public statement on the use of artificial intelligence (AI) in the provision of retail investment services. The statement provides initial guidance to investment firms and credit institutions using, or planning to use, AI so they can ensure compliance with their obligations under MiFID II. It also outlines live use cases and ESMA’s understanding of the “known challenges” currently facing firms in adopting AI.Emerging ESMA approach?While this is by no means ESMA’s first publication or statement on AI,...
    Read more
  •  
    06/06/2024

    Market outages: IOSCO good practices and key findings from global survey

    On 5 June 2024, the International Organization of Securities Commissions (IOSCO) published its Final Report on Market Outages, setting out good practices for trading venues and market participants in the event that a trading venue experiences technical problems or operational issues.The Final Report includes a survey of the global legislative and regulatory framework for market outages, as well as the results of IOSCO’s survey of recent market outages from 2018 to 2022. IOSCO found that, out of its members surveyed, which includes the UK Financial Conduct Authority (FCA) and US Securities...
    Read more
  •  
    05/06/2024

    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...
    Read more
  •  
    31/05/2024

    Ancillary Activities Exemption – a change in approach for commodity derivatives and emission allowances firms

    On 29 May 2024, the Financial Services and Markets Act 2000 (Commodity Derivatives and Emission Allowances) (Amendment) Order 2024 (SI 2024/719) (the “2024 Order”) was published alongside an explanatory memorandum. The 2024 Order omits prospective amendments to the UK regulated activities perimeter, with the effect that the planned changes to the ancillary activities regime for firms trading commodity derivatives or emission allowances have been indefinitely delayed. This followed significant concerns from industry that moving to a qualitative approach to determining whether firms require...
    Read more
  •  
    29/05/2024

    Operational Resilience: The Countdown

    The countdown is on to make sure your firm is ready to comply with the operational resilience rules by 31 March 2025. This date marks the end of the transition period, but the requirement to be operationally resilient is not a once and done activity, or something that should be seen as tick-box regulatory compliance. Instead, this should be a way of working that is embedded into a firm’s overall culture.The FCA provided feedback to firms on 28 May 2024 which included insights and observations to support firms with their continued implementation of the rules.In our view, this FCA feedback...
    Read more
  •  
    28/05/2024

    The FCA’s anti-gre­en­wash­ing rule and guidance: what are the litigation risks for firms?

    The Financial Conduct Authority (FCA) has recently published its finalised guidance on the anti-greenwashing rule, which will come into force on 31 May 2024.The anti-greenwashing rule, in the Environmental, Social and Governance (ESG) Sourcebook, requires all FCA authorised firms to ensure that any reference to the sustainability characteristics of a product or service is:a.      consistent with the sustainability characteristics of the product or service, andb.      fair, clear and not misleading.The guidance is intended to help firms understand...
    Read more