Global Trustee and Fiduciary Services Bite-Sized Issue 3 2024

Global Trustee and Fiduciary Services Bite-Sized | Issue 3 | 2024 6 QUICK LINKS AIFMD CYBERSECURITY DIGITALISATION DORA EMIR LIBOR FSB IOSCO MICA MIFID II/MIFIR MONEY MARKET FUNDS OPERATIONAL RESILIENCE SUSTAINABLE FINANCE/ESG ASIA EUROPE IRELAND LUXEMBOURG NORTH AMERICA SWITZERLAND UNITED KINGDOM MICA European Commission Adopt MiCA Delegated Acts On 22 February 2024, the European Commission adopted four Delegated Regulations under the Markets in Cryptoassets Regulation (MiCA). The four Delegated Regulations cover: • Commission Delegated Regulation supplementing Regulation (EU) 2023/1114 by specifying the procedural rules for the exercise of the power to impose fines or periodic penalty payments by the European Banking Authority on issuers of significant asset-referenced tokens and issuers of significant e-money tokens. • Commission Delegated Regulation supplementing Regulation (EU) 2023/1114 by specifying certain criteria for classifying asset-referenced tokens and e-money tokens as significant. • Commission Delegated Regulation supplementing Regulation (EU) 2023/1114 by specifying the fees charged by the European Banking Authority to issuers of significant asset-referenced tokens and issuers of significant e-money tokens. • Commission Delegated Regulation supplementing Regulation (EU) 2023/1114 by specifying the criteria and factors to be taken into account by the European Securities Markets Authority, the European Banking Authority and competent authorities in relation to their intervention powers. The Delegated Regulations will enter into force 20 days after their publication in the Official Journal. Link to European Commission Homepage here MIFID II/MIFIR MiFIR and MiFID II: Council Adopts New Rules to Strengthen Market Data Transparency On 20 February 2024, the Council of the EU (Council) adopted changes to the EU’s trading rules, which it says will give investors a better access to the market data necessary to invest in financial instruments and increase the global competitiveness of the EU’s capital markets and ensure a level playing field. The changes concern the Markets in Financial Instruments Regulation (MiFIR) and the Markets in Financial Instruments Directive (MiFID) which together regulate investment services and financial markets activities in the EU. The aim of the new rules is to empower investors, in particular by making consolidated market data easily available at EU level. Consolidated market data – The rules that have been adopted establish EU-level ‘consolidated tapes’ or centralised data feeds for different kinds of assets, bringing together market data provided by platforms on which financial instruments are traded in the EU. The consolidated tapes will aim to publish the information as close as possible to real time. Payment for order flow – The new rules also impose a general ban on ‘payment for order flow’ (PFOF). The Council states that Member States where the practice of PFOF already existed may allow investment firms under its jurisdiction to be exempt from the ban, provided that PFOF is only provided to clients in that Member State. However, this practice must be phased out by 30 June 2026. Commodity derivatives – The review also introduces new rules on commodity derivatives. This is the final step of the adoption procedure. The texts will now be published in the EU’s Official Journal and enter into force 20 days later. The regulation will apply immediately in all EU countries, whereas the member states will have 18 months to bring into force the laws, regulations and administrative provisions necessary to comply with the directive. Link to Amended MiFIR Text here Link to Amended MiFID Text here