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Proposal for a Regulation on the transparency and integrity of Environmental, Social and Governance (ESG) rating activities
On 13 June 2023, the European Commission (EC) published the Proposal for a Regulation on the transparency and integrity of Environmental, Social and Governance (ESG) rating activities (hereinafter the Regulation). ESG ratings offer an opinion, a score or a combination of these regarding the ESG elements of an entity, undertaking, financial instrument or financial product.…
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European Commission Retail Investment Strategy
On 24 May 2023, the European published its Retail investment strategy with which it aims to provide retail investors a framework that empowers them to make investment decisions that are aligned with their needs and preferences while, in turn, ensuring they have a high level of protection. By means of this initiative, the Commission seeks…
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IOSCO public consultation of May 2023 on Recommendations for crypto and digital asset markets and intermediaries and public consultation of September 2023 on Recommendations for decentralised finance (DeFi)
On 23 May 2023, the International Organisation of Securities Commissions (IOSCO) published a consultation report with the aim of proposing a set of recommendations related to crypto and digital asset markets to address market integrity and investor protection. Said consultation is part of the works by the Financial Stability Board (FSB) on crypto-assets and financial…
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ESMA Report on the Call for Evidence on pre-hedging
On 12 July 2023, ESMA published a Report tackling the possible treatment deserved by pre-hedging practices, carried out by liquidity providers when trading financial instruments. For this, the document published analyses the responses received resulting from the Call for Evidence (CfE) launched in July 2022. In particular, ESMA studies two specific cases related to pre-hedging:…
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Report on best practices related to the application of IOSCO principles for exchange traded funds
Exchange traded funds (ETFs) fall within a category of collective investment schemes with equity stakes listed on secondary markets. Thus, unlike the units of traditional funds that are subscribed or redeemed at their net asset value, calculated once a day, ETF units can be acquired and sold on said markets during trading hours, benefiting from…
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Consultation paper on the review of the SFDR Delegated Regulation
On April 12, 2023, the European Supervisory Authorities (ESAs) published a consultation paper on the proposed amendments to the Delegated Regulation of Regulation (EU) 2019/2088 on disclosure on sustainability (Delegated Regulation). The public consultation will be open until July 4, 2023. The review of the Delegated Regulation responds to a mandate of the European Commission…
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Set of proposals from the European Commission on the admission to trading of companies (listing act)
The European Commission (EC) published on December 7, 2022 a set of proposals to make the capital markets of the European Union (EU) more attractive, grouped into three themes: i) measures on clearing, to make clearing services in the European Union they are more attractive and resilient in order to sustain strategic autonomy and preserve…
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Proposal for a Regulation as regards measures to mitigate excessive exposures to third-country CCPs and improve the efficiency of Union clearing markets (“EMIR 3”)
Based on the framework for centralised clearing established by EMIR and its implementing regulations, the proposal of the European Commission (EC) identifies certain areas that require simplification in order to promote the attractiveness of European central counterparties (CCPs) inside and outside the European Union (EU). Among other aspects, the proposal focuses on the lengthy and…
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Report on the self-assessment exercise of IOSCO principles 1-5. Capacity, independence and resources of securities market regulators
The IOSCO principles constitute for the supervisory entities, the cornerstone of the international regulation of the securities markets, its inalienable objectives are the investors` protection, the existence of efficient and transparent markets and the reduction of systemic risk. The IOSCO principles consist of 38 objectives, divided into 7 different sections. Principles 1 to 8 refer…
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Report on the Evaluation of the Effectiveness of the 2017 FSB Recommendations on the Management of the Liquidity Mismatch of Open Funds
In 2017, the Financial Stability Board ("FSB") published Policy Recommendations to Address Structural Vulnerabilities from Asset Management Activities ("FSB Recommendations"), which included liquidity mismatches in open funds ("Open Ended Funds" or "OEF"). Taking most of these recommendations into consideration, IOSCO issued in 2018 the Recommendations for Liquidity Risk Management for Collective Investment Schemes. The Report…
