CySec
ESMA Guidelines (ESMA34-45-1272) on marketing communications under the Regulation on cross-border distribution of funds
13 October 2021
The Cyprus Securities and Exchange Commission (‘CySEC’) wishes to inform the Regulated Entities that the European Securities and Markets Authority (ESMA) has published the Guidelines on marketing communications under the Regulation on cross-border distribution of funds (‘the Guidelines’), on 2 August 2021 translated in all official languages of the EU. For more information please press here.
EBA
Points to still elevated benchmark rate transition risks
14 October 2021
The European Banking Authority ('EBA') published a thematic note on the transition risks of benchmark rates as LIBOR (the London Interbank Offered Rate) and EONIA (the Euro Overnight Index Average) - two major benchmark interest rates - are close to being phased out. For more information please press here.
Market News
Bloomberg
Brent Oil Surges to $85 as Energy Crisis Stokes Demand
15 October 2021
"Oil jumped to $85 a barrel for the first time since late 2018 as a global energy crunch tightens the crude market. Brent futures in London rose as high as $85.10 a barrel, a gain of 1.3%. A shortage of gas and coal is triggering extra demand for oil products from the power market, especially in Asia, the International Energy Agency said. The energy squeeze has also led to an unusually large draw of crude stockpiles for the time of year at the U.S. storage hub of Cushing, government data show." For more information please press here.
Bloomberg Germany’s 2021 Growth Forecast Slashed on Supply Crunch
14 October 2021
"Germany’s leading research institutes slashed their joint 2021 growth forecast for Europe’s biggest economy as supply logjams delay the nation’s recovery into next year. The downgrade to a 2.4% expansion in gross domestic product, from 3.7% previously, reflects a relentless shortage of inputs, a lack of shipping capacity and -- more recently -- a spike in energy costs that is threatening rebounds across the globe. The outlook for 2022 was upgraded to 4.8% from 3.9%." For more information please press here.
Financial Times Largest index providers’ ‘stranglehold’ is limiting fee cuts
15 October 2021
"The largest index providers have a “stranglehold” on the market, which is keeping licensing costs higher for asset managers and limiting further passive fund fee cuts, according to experts. Index providers’ influence in exchange traded funds’ fee levels came to the fore last week when Amundi launched its Prime Emerging Markets Ucits ETF with a market-leading price tag of 10 basis points. Amundi selected smaller provider Solactive to calculate the fund’s index and keep costs down. By contrast, the French asset manager’s €5bn MSCI Emerging Markets Ucits ETF charges 20bp." For more information please press here.
Cryptocurrencies
Bloomberg Putin Says He Accepts Crypto’s Role in Making Payments
14 October 2021
"Russian President Vladimir Putin signaled tolerance of cryptocurrencies, which are drawing increasing scrutiny from regulators around the world amid fears they can be used for money laundering and criminal activity. Cryptocurrency “has the right to exist and can be used as a means of payment,” Putin said in an interview with CNBC that was posted on the Kremlin’s website Thursday. Still, he cautioned it was too soon to talk about using digital currencies for trading oil and other commodities that form the bulk of Russia’s exports." For more information please press here.
Regulatory Reporting Solutions
Treppides Regulatory Reporting offers extensive reporting solutions under EMIR, MIFID, CRD IV, FATCA, CRS, REMIT towards MiFID II / MiFIR and CRS in all EU/ESMA jurisdictions like Cyprus (CySEC) and UK (FCA) and soon will also comply with foreign jurisdictions such as ASIC DTR.
