ESMA and NCAs to coordinate supervisory activities on MiFID II pre-trade controls
ESMA has launched a Common Supervisory Action with National Competent Authorities, with the objective of assessing the implementation of pre-trade controls (PTCs) by EU investment firms using algorithmic trading techniques.
The CSA will cover the following aspects:
Implementation of PTCs, including their calibration methodology and the use of hard and soft blocks in the design of PTCs;
Establishment of credit and risk limits and their interaction with PTCs;
Monitoring and governance framework related to PTCs;
Implementation and monitoring of PTCs in case of outsourcing of trading activity to third countries.
ESMA presents methodology for climate risk stress testing and analysis of the financial impact of greenwashing controversies
ESMA published two articles, one outlining an approach to modelling the impact of asset price shocks from adverse scenarios involving climate-related risks, the other exploring the use of ESG controversies for the purpose of monitoring greenwashing risk.
ESMA proposes changes and updates timeline for its Guidelines on funds’ names
ESMA provides an update on the status of its guidelines on ESG and sustainability-related terms in fund names, including details on the timing of their publication. ESMA has decided to postpone the adoption of the Guidelines to ensure that the outcome of these reviews may be fully considered.
ESAs put forward amendments to sustainability disclosures for the financial sector
The ESAs published their Final Report amending the draft RTS to the Delegated Regulation supplementing the Sustainable Finance Disclosure Regulation (SFDR). The ESAs propose adding new social indicators and streamlining the framework for the disclosure of principal adverse impacts of investment decisions on the environment and society.
ESMA Strategic priorities for the next five years & 2024 Work Programme
ESMA will focus on strengthening supervision, enhancing the protection of retail investors, fostering effective markets and financial stability, enabling sustainable finance, as well as facilitating technological innovation and effective use of data.