Global Trustee and Fiduciary Services Bite-Sized Issue 8 2024

8 QUICK LINKS AIFMD CBDC CRYPTOASSETS CSDR FINTECH FSB FUND LIQUIDITY MAR MIFID II/MIFIR OPERATIONAL RESILIENCE REMUNERATION SUSTAINABLE FINANCE/ ESG UCITS ASIA PACIFIC EUROPE IRELAND NORTH AMERICA UNITED KINGDOM Global Trustee and Fiduciary Services Bite-Sized | Issue 8 | 2024 MiFIR Review: ESMA Launches NewConsultations On 10 July 2024, ESMA published a new package of public consultations with the objective of increasing transparency and system resilience in financial markets, reducing reporting burden and promoting convergence in the supervisory approach. This package includes: 1. Amendments to rules on the liquidity assessment for equity instruments, on equity transparency and on the volume cap. 2. A draft of the new Implementing Technical Standard (ITS) on systematic internalisers (SIs). 3. A section on the equity Consolidated Tape Provider (CTP) in relation to the input/ output data, to ensure full alignment between the transparency requirements and the CTP specifications. 4. A section on flags to be used in the post-trade transparency reports for non-equity instruments which was missing in the previous consultation. 5. New rules specifying organisational requirements of trading venues, adding new provisions on circuit breakers and with targeted amendments to adapt to the DORA framework. Once these standards are approved, they will facilitate the implementation of the Consolidated Tape Provider (CTP) in the European Union as well as contribute to a more informative pre- trade and post-trade transparency regime. The new rules also aim to foster efficiency and competitiveness in European financial markets, thanks to streamlined reporting requirements. Next Steps ESMA will consider all comments received by: • 30 September 2024 for the technical advice (Section 3), RTS 1 (Section 4), the RTS on input/ output data for shares and ETFs CTP (Section 8) and the flags under RTS 2. • 15 October 2024 for the SI ITS (Section 5), RTS 3 (Section 6) and RTS 7 (Section 7). ESMA will prepare a final report and intends to submit to the European Commission the technical advice and the draft technical standards for RTS 1, the whole input/output data RTS and RTS 2 (including the flags) in December 2024, and the remaining mandates in March 2025. Further information on the MiFID II /MiFIR review and the upcoming consultation process can be found on the dedicated webpage. Link to the Package here OPERATIONAL RESILIENCE ESAs Publish Joint Final Report on the Draft Technical Standards on Subcontracting Under DORA On 26 July 2024, the three European Supervisory Authorities (EBA, EIOPA and ESMA – the ESAs) published their joint Final report on the draft Regulatory Technical Standards (RTS) specifying how to determine and assess the conditions for subcontracting information and communication technology (ICT) services that support critical or important functions under the Digital Operational Resilience Act (DORA). These RTS focus on ICT services provided by ICT subcontractors that support critical or important functions, or material parts of them. In addition, they specify the requirements throughout the lifecycle of contractual arrangements between financial entities and ICT third-party service providers. In particular, they require financial entities to assess the risks associated with subcontracting during the precontractual phase, including the due diligence process. Requirements for the implementation and management of contractual arrangements on subcontracting conditions are defined with these RTS, to ensure that financial entities monitor the subcontractors effectively underpinning the ICT services that support critical or important functions and remain in control of their risks. The RTS finalises the publication of the ESAs’ second batch of regulatory products under DORA. Link to the Final Report here