ESMA European Securities and Markets Authority : Opinion on CRR ITS final

Microsoft Word - 2016-ESMA-163 - Opinion on CRR ITS final.docx

Opinion Draft Implementing Technical Standards on main indices and recognised exchanges under the Capital Requirements Regulation

28 January 2016 | ESMA/2016/163

Table of Contents

1. Legal Basis 3

2. Background and Procedure 3

3. Executive Summary 3

4. ESMA Opinion 4

5. Hang Seng Composite Index and Russell 3000 Index 4

6. Table providing the detailed impact of including the Hang Seng Composite Index and the Russell 3000 Index 10

7. Update of existing list of main indices 12

8. Update of existing list of recognised exchanges 12

9. Annex 14

Glossary




CRR Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012

EMIR European Market Infrastructures Regulation - Regulation (EU) 648/2012 of the European Parliament and Council on OTC derivatives, central counterparties and trade repositories

ESMA European Securities and Markets Authority ITS Implementing Technical Standards

MiFID Markets in Financial Instruments Directive - Directive 2004/39/EC of the European Parliament and the Council

1. Legal Basis

   
   

2. In accordance with Article 197(8) of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012 (CRR), the European Securities and Markets Authority (ESMA) shall develop draft implementing technical standards (ITS) to specify main indices and recognised exchanges.

   
   

3. Background and Procedure

   
   

4. On 19 December 2014, ESMA submitted draft ITS to specify main indices and recognised exchanges to the European Commission pursuant to Article 15(1) of Regulation No (EU) 1095/2010 (the ESMA Regulation) and Article 197(8) CRR. On 29 January 2015, ESMA submitted a corrigendum to that draft ITS to the European Commission as the list of main indices and recognised exchanges already required an update.

   
   

5. On 17 December 2015, the European Commission informed ESMA of its intention to amend the draft ITS submitted by ESMA by including two additional equity indices.

   
   

6. Pursuant to Article 15(1) of the ESMA Regulation, this notification from the European Commission triggers a period of six weeks during which ESMA may amend its draft ITS on the basis of the European Commission's proposed amendments and resubmit it in the form of a formal opinion. ESMA shall send a copy of its formal opinion to the European Parliament and to the Council.

   
   

7. It is for the Board of Supervisors to adopt such formal opinion in accordance with Article 44(1) of the ESMA Regulation.

   
   

8. Executive Summary




1. ESMA is of the opinion that the Hang Seng Composite Index and the Russell 3000 Index should not be added to the list of main equity indices.

   
   

2. ESMA does however suggest adding the Russell 1000 Index, the Shanghai Shenzhen CSI 300, the S&P BSE 100 Index and the FTSE Nasdaq Dubai UAE 20 Index to the list of main equity indices. ESMA also suggests replacing the Nikkei 225 with the Nikkei 300 and the NZSE 10 with the S&P NZX 15 Index.

   
   

3. Independent of the intention of the European Commission to include two additional equity indices, ESMA has checked the complete lists of main indices and recognised exchanges submitted in the ITS draft of 29 January 2015 and provides the European Commission with a number of necessary updates.