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Date Ref. Title Section Type Download Info Summary Related Documents Translated versions
05/06/2014 2014/608 MMoU on Cooperation Arrangements and Exchange of Information , Reference PDF
205.85 KB

The European Securities and Markets Authority (ESMA) has published the text of a new multilateral memorandum of understanding (MMoU) between EEA national competent authorities, and between national competent authorities and ESMA which entered into force on 29 May 2014. It has been signed by 33 authorities in the securities and markets area. The new MMoU was agreed in view of the increasing internationalisation, harmonisation and interdependence of financial services and markets in the European Union. It is designed to facilitate cooperation arrangements and the exchange of information between national competent authorities, and between national competent authorities and ESMA, in the application of their responsibilities under Union law relating to the securities and markets area. It also updates and replaces a previous agreement on the Exchange of Information and Surveillance of Securities Activities agreed by the members of the Committee of European Securities Regulators (formerly the Forum of European Securities Commissions) entered into by those members on 26 January 1999. List of Signatories to MMoU on Cooperation Arrangements and Exchange of Information

11/06/2014 ESMA/WP/2 ESMA Working Paper- The systemic dimension of hedge fund illiquidity and prime brokerage Reference PDF
839.63 KB
We analyse the potentially vulnerable and systemically relevant financial intermediation chain established by hedge funds and prime brokers. Our dataset covers the 306 largest global hedge funds and their prime brokers over the period July 2001 to December 2011. The study illustrates that hedge funds and prime brokers act as complementary trading partners in normal times. However, we observe that this form of financial intermediation may be severely impaired in times of market distress. This can be explained by the hoarding of liquid securities by prime brokers who are eager to avert runs by their clients.
11/06/2014 ESMA/WP/1 ESMA Working Paper- Monitoring the European CDS market through networks: Implications for contagion risks Reference PDF
1005.17 KB
Based on a unique data set referencing exposures on single name credit default swaps (CDS) on European reference entities, we study the structure and the topology of the European CDS market and its evolution from 2008 to 2012, resorting to network analysis. The structural features revealed show bilateral CDS exposures describing growing scale-free networks whose highly interconnected hubs constitute both a strength and weakness for the stability of the system. The potential “super spreaders” of financial contagion, identified as the most interconnected participants, consist mostly of banks. For some of them net notional exposures may be particularly large relative to their total common equity. Our findings also point to the importance of some non-dealer/non-bank participants belonging to the shadow banking system.
18/06/2014 2014/639 Call for expressions of interest regarding the renewal of the Consultative Working Group of the ESMA Secondary Markets Standing Committee Reference PDF
131.06 KB
The European Securities and Markets Authority (ESMA) is looking to newly constitute a Consultative Working Group (CWG) for the ESMA Secondary Markets Standing Committee (SMSC) as the two-year-term of the existing CWG has recently expired. ESMA is therefore calling for expressions of interest from stakeholders to become a member of the CWG by 13 July 2014. The application form should be accompanied by a CV. The model European CV is recommended.It is optional for applicants, though recommended, to attach a letter of motivation.
31/07/2014 2014/944 Potential Risks Associated with Investing in Contingent Convertible Instruments , Statement PDF
106.1 KB
The European Securities and Markets Authority (ESMA) is issuing this statement to clarify to institutional investors risks from a newly emerging asset class referred to by most market participants as contingent convertibles instruments (CoCos). If they work as intended in a crisis CoCos will play an important role to inhibit risk transfer from debt holders to taxpayers. They along with standards to improve the quality and quantity of bank capital reflect a considerate response to the former regulatory capital framework. However, it is unclear as to whether investors fully consider the risks of CoCos and correctly factor those risks into their valuation. ESMA believes there are specific risks to CoCos and that investors should take those risks into consideration prior to investing in these instruments.
06/11/2014 2014/1334 MiFID database- Contact emails of national competent authorities for market participants [updated] Reference PDF
138.29 KB

ESMA has established a list of national contacts, to which questions pertaining to the content of specific entries should be sent.  Please use this list to contact the relevant competent authority if you a have a query regarding shares which have been included in or ex-cluded from the list, the calculations for a specific entry or its status as liquid/not liquid.

18/11/2014 2014/1371 Call for expressions of interest: Consultative Working Group for ESMA’s Financial Innovation Standing Committee Reference PDF
210.41 KB
ESMA today launches a process to renew the composition of the Consultative Working Group (‘CWG’) for the Financial Innovation Standing Committee (’FISC’). ESMA is therefore calling for expressions of interest from stakeholders. Application procedure, closing date Relevant stakeholders meeting the required selection criteria and wishing to apply for a position on the CWG are invited to submit, in English: a completed application form (see separate document), and a detailed curriculum vitae (CV), preferably in the EU CV format - the link to the template for this is: http://europass.cedefop.europa.eu/europass/home/hornav/Downloads/Europas... It is optional for applicants to attach a motivation letter (2 pages maximum). Unclear or incomplete applications will not be considered. Applications must be submitted by email using the application form by no later than 31 December 2014 to the following email addresses: patrick.armstrong@esma.europa.eu and anne.chone@esma.europa.eu.
04/12/2014 ESMA/ASIC1 ESMA-ASIC MOU on access to trade repositry data Reference PDF
384.61 KB
15/01/2015 ESMA/WP/2015/1 ESMA Working Paper- Real-world and risk-neutral probabilities in the regulation on the transparency of structured products Reference PDF
480.24 KB
The price of derivatives (and hence of structured products) can be calculated as the discounted value of expected future payoffs, assuming standard hypotheses on frictionless and complete markets and on the type of stochastic processes for the price of the underlying. However, the probabilities used in the pricing process do not represent “real” probabilities of future events, because they are based on the assumption that market participants are risk-neutral. This paper reviews the relevant mathematical finance literature, and clarifies that the risk-neutrality hypothesis is acceptable for pricing, but not to forecast the future value of an asset. Therefore, we argue that regulatory initiatives that mandate intermediaries to give retail investors information on the probability that, at a future date, the value of a derivative will be higher or lower than a given threshold (so-called “probability scenarios”) should explicitly reference probabilities that take into account the risk premium (so-called “real-world” probabilities). We also argue that, though probability scenarios may look appealing to foster investor protection, their practical implementation, if based on the right economic approach, raises significant regulatory and enforcement problems.
16/01/2015 2015 ESMA SFC MoU MoU between ESMA and SFC regarding CCPs Reference PDF
635.27 KB
05/03/2015 MOU ESMA RBA MoU between ESMA and RBA regarding trade repositories Reference PDF
134.04 KB
The European Securities and Markets Authority (ESMA) and the Reserve Bank of Australia (RBA) have concluded a Memorandum of Understanding (MoU) that will allow RBA to have access to data held in European Trade repositories according to its mandate. The MoU is effective as of 18 February 2015.The ESMA-RBA MoU is the second cooperation arrangement established under Article 76 of the European Market Infrastructure Regulation (EMIR). This provision aims at ensuring that third-country authorities that do not have any trade repository in their jurisdiction may access the information on derivatives contracts held in European trade repositories which is relevant for their mandates. The MoU ensures that guarantees of professional secrecy exist. The first MoU of this kind was concluded in November 2014 between ESMA and the Australian Securities & Investments Commission (ASIC).
09/03/2015 ESMA MAS MoU ESMA and MAS MoU on CCPs Reference PDF
758.85 KB
31/08/2015 2015/1301 reply form Reply form to the Consultation on Draft implementing technical standards under MiFID II Reference DOCX
782.52 KB
14/09/2015 2015/1291 Risk Dashboard No. 3, 2105 Reference PDF
848.31 KB
28/09/2015 2015/1468 Trading venue briefing , Reference PDF
304.63 KB
28/09/2015 2015/1469 2015-1469- Investment Firms briefing , Reference PDF
314.38 KB
28/09/2015 2015/1470 2015-1470- Non-financials briefing , Reference PDF
307.12 KB
17/11/2015 2015/1514 Note on MiFID-MiFIR implementation delays , Reference PDF
131.7 KB
16/12/2015 2015/1882 Risk Dashboard No. 4, 2015 Reference PDF
931.3 KB
23/12/2015 2015/1909R form_to_reply_cp_tr_ork_cs Reference DOCX
784.54 KB