The document provides an overview of EU financial regulation, including the establishment of the European System of Financial Supervisors which created the European Banking Authority, European Insurance and Occupational Pensions Authority, and European Securities and Markets Authority to regulate different financial sectors. It also discusses regulations of specific interest to hedge funds, such as the Alternative Investment Fund Managers Directive, European Market Infrastructure Regulation, and Short Selling Regulation.
Included in presentation is information on the European Commission, Council of the European Union, European Parliament, European Council, and European Central Bank, as well as new regulatory entities such as the European Securities and Markets Authority. Information on some of the most important hedge fund-related regulations is also provided, including the Alternative Investment Fund Managers Directive (AIFMD), European Market Infrastructure Regulation (EMIR), short selling regulation, Review of Markets in Financial Instruments Directive (MiFIDII), and the Market Abuse Directive (MAD).
Part of an English for International Communication course, focussing on English as language of administration in the EU. Delivered to third-year undergraduates at the Epirus Institute of Technology (ΤΕΙ Ηπείρου)
8. International Currency and Currency CrisisCharu Rastogi
This presentation deals with Euro Phases, Benefit and Cost of the Euro, Euro and Implication for India, Trade Invoicing in Euro vs. Dollars and South East Asian Currency Crisis
Included in presentation is information on the European Commission, Council of the European Union, European Parliament, European Council, and European Central Bank, as well as new regulatory entities such as the European Securities and Markets Authority. Information on some of the most important hedge fund-related regulations is also provided, including the Alternative Investment Fund Managers Directive (AIFMD), European Market Infrastructure Regulation (EMIR), short selling regulation, Review of Markets in Financial Instruments Directive (MiFIDII), and the Market Abuse Directive (MAD).
Part of an English for International Communication course, focussing on English as language of administration in the EU. Delivered to third-year undergraduates at the Epirus Institute of Technology (ΤΕΙ Ηπείρου)
8. International Currency and Currency CrisisCharu Rastogi
This presentation deals with Euro Phases, Benefit and Cost of the Euro, Euro and Implication for India, Trade Invoicing in Euro vs. Dollars and South East Asian Currency Crisis
Conference: European Banking Union: Democracy, Technocracy and the State of Integration - Global Governance Programme, Robert Schuman Centre for Advanced Studies, European University Institute
By: Sergio Fabbrini, LUISS School of Government
This educational resource details the traditional calculation method that hedge funds use for their assets under management. It also explains the new method of calculation used by the Securities and Exchange Commission, called Regulatory Assets Under Management (RAUM).
Hedge funds originated as a vehicle to help diversify investment portfolios, manage risk and produce reliable returns over time. While hedge funds’ investor base has evolved over the years – from individuals to institutions such as pensions, universities and foundations – their core goals have not.
This presentation provides a brief overview of the investment approach hedge funds offer their partners.
It also illustrates the many ways hedge fund investments benefit communities and individuals.
Learn more about the global hedge fund industry at: www.hedgefundfundamentals.com.
Hedge funds offer qualified investors a unique partnership. While hedge funds first began as a way to offer investors a balanced – or market-neutral – approach to investing, the methods have evolved through the years. This presentation focuses on one of those strategies, relative value.
Hedge Fund Due Diligence: Resources to Help Investors Better Understand Their...HedgeFundFundamentals
In light of recent changes brought forth by the new rules adopted by the Securities and Exchange Commission (SEC) implementing the Jumpstart our Business Startups (JOBS) Act, this presentation is designed as an educational tool with basic information about who can invest in hedge funds as well as some potential red flags regarding investment fraud.
Short Selling: An Important Tool for Price Discovery and Liquidity in the Fin...HedgeFundFundamentals
The new presentation gives users valuable information about how hedge funds and other investors participate in the marketplace through short selling.
As the presentation describes, short selling generally means borrowing an asset (a security/stock, commodity futures contract, and corporate or sovereign bond) from a broker and selling it, with the understanding that it must later be bought back (hopefully at a lower price) and returned to the broker. The short seller then closes out the short position by buying equivalent securities on the open market, or by using an identical security it already owned, and returning the borrowed security to the lender.
As many news stories highlight short selling as a negative force in our markets, the new presentation explains how short selling can be a way for investors to communicate their view on the price of an asset. Short selling also provides many other critical benefits to investors, including:
• Risk management for hedging long positions and managing portfolio risk
• Increasing efficiency in the marketplace because the transactions inform the market with their evaluation of future stock, bond, or commodity price performance
• Lowering overpriced securities by encouraging better price discovery
• Providing liquidity by increasing the number of potential sellers in the market
Learn more about the global hedge fund industry at: www.hedgefundfundamentals.com.
This presentation will give users a general overview of many aspects of the industry and its purpose, including:
• The benefits of hedge fund investing
• Who invests in hedge funds?
• Who regulates the hedge fund industry?
• The various strategies and types of hedge funds
• How do hedge funds generate returns for their investors
Learn more about the global hedge fund industry at: www.hedgefundfundamentals.com.
Conference: European Banking Union: Democracy, Technocracy and the State of Integration - Global Governance Programme, Robert Schuman Centre for Advanced Studies, European University Institute
By: Sergio Fabbrini, LUISS School of Government
This educational resource details the traditional calculation method that hedge funds use for their assets under management. It also explains the new method of calculation used by the Securities and Exchange Commission, called Regulatory Assets Under Management (RAUM).
Hedge funds originated as a vehicle to help diversify investment portfolios, manage risk and produce reliable returns over time. While hedge funds’ investor base has evolved over the years – from individuals to institutions such as pensions, universities and foundations – their core goals have not.
This presentation provides a brief overview of the investment approach hedge funds offer their partners.
It also illustrates the many ways hedge fund investments benefit communities and individuals.
Learn more about the global hedge fund industry at: www.hedgefundfundamentals.com.
Hedge funds offer qualified investors a unique partnership. While hedge funds first began as a way to offer investors a balanced – or market-neutral – approach to investing, the methods have evolved through the years. This presentation focuses on one of those strategies, relative value.
Hedge Fund Due Diligence: Resources to Help Investors Better Understand Their...HedgeFundFundamentals
In light of recent changes brought forth by the new rules adopted by the Securities and Exchange Commission (SEC) implementing the Jumpstart our Business Startups (JOBS) Act, this presentation is designed as an educational tool with basic information about who can invest in hedge funds as well as some potential red flags regarding investment fraud.
Short Selling: An Important Tool for Price Discovery and Liquidity in the Fin...HedgeFundFundamentals
The new presentation gives users valuable information about how hedge funds and other investors participate in the marketplace through short selling.
As the presentation describes, short selling generally means borrowing an asset (a security/stock, commodity futures contract, and corporate or sovereign bond) from a broker and selling it, with the understanding that it must later be bought back (hopefully at a lower price) and returned to the broker. The short seller then closes out the short position by buying equivalent securities on the open market, or by using an identical security it already owned, and returning the borrowed security to the lender.
As many news stories highlight short selling as a negative force in our markets, the new presentation explains how short selling can be a way for investors to communicate their view on the price of an asset. Short selling also provides many other critical benefits to investors, including:
• Risk management for hedging long positions and managing portfolio risk
• Increasing efficiency in the marketplace because the transactions inform the market with their evaluation of future stock, bond, or commodity price performance
• Lowering overpriced securities by encouraging better price discovery
• Providing liquidity by increasing the number of potential sellers in the market
Learn more about the global hedge fund industry at: www.hedgefundfundamentals.com.
This presentation will give users a general overview of many aspects of the industry and its purpose, including:
• The benefits of hedge fund investing
• Who invests in hedge funds?
• Who regulates the hedge fund industry?
• The various strategies and types of hedge funds
• How do hedge funds generate returns for their investors
Learn more about the global hedge fund industry at: www.hedgefundfundamentals.com.
This helpful presentation takes an in depth look into the many issues surrounding this important topic in the hedge fund industry, clearing up misconceptions and offering a thorough explanation of the reasons behind offshore investing.
Included in this presentation among other topics, users will find information regarding:
How hedge funds are structured
The composition of hedge fund investors
Reasons why investors choose offshore hedge funds
The various domiciles in which hedge funds operate
How hedge funds accommodate the needs of various investors
Learn more about the global hedge fund industry at: www.hedgefundfundamentals.com.
This presentation offers users a simple guide to learning the basic structure of hedge funds. Guiding users through hedge fund structures, covering topics such as:
• Hedge funds’ typical partnership structure
• Organizational structure at many hedge funds
• Due to their structure, only certain types of investors can invest with hedge funds
• The role of portfolio managers
• The typical role of general counsels, auditors, and administrators at hedge funds
• How prime brokers interact with hedge funds
• Executing brokers and their role in the hedge fund industry
• Fee structure at hedge funds
Learn more about the global hedge fund industry at: www.hedgefundfundamentals.com.
Instructions Your initial post should be at least 500 words T.docxmaoanderton
Instructions: Your initial post should be at least 500 words
The readings this week apply different theoretical perspectives to analyze the European Union as a regional IO. For example, in the articles, we read about rationalism, social constructivism, multi-level governance, enforcement and management theory, and more. In addition, the lesson notes discuss intergovernmentalism, supranationalism, and veto player theory. Which theoretical perspective(s) do you find the most persuasive and why when it comes to analyzing EU policymaking? Which is the least persuasive and why? Please incorporate specific examples to support your arguments.
Reading and references:
Lesson 7 | Regional Organizations: The European Union
In this lesson, we will turn our attention to regional organizations, taking the European Union (EU) as our case study. We examine and assess several theories that explain how EU policy-making works. At the end of this lesson, students will be able to:
Examine the institutions of the EU
Assess important issues in EU policymaking
Apply concepts and theories about IOs to the operation of the EU
The European Union (EU): An Overview
The purpose of this lesson is not to master the history of European integration; rather, we focus here on setting up the framework for the study of the European Union (EU) as a regional organization. It makes sense to approach the complex processes of economic enlargement and political integration by first providing a brief overview of the different key stages of enlargement.
View the interactive map of the current EU member states. This is worth taking 10 minutes to explore. You can filter by states using the euro currency, by prospective member states, and more.
EU Website
1951
Six states enter into the European Coal and Steel Community (ECSC): Belgium, France, Italy, Luxembourg, the Netherlands, and West Germany.
1957
The six states enter into the Treaty of Rome. This treaty extended the European Coal and Steel Community, established a customs union through the creation of the European Economic Community (EEC), and created the European Atomic Energy Community (Euratom) for cooperation in developing nuclear energy.
1973
The first enlargement occurs with the membership of Denmark, Ireland, and the UK (for a total of 9 total members).
1979
This year marks the first direct, democratic elections to the European Parliament.
1981
Greece enters into full membership, in part to “lock in” democracy after a period of military dictatorship. With Greece’s membership, the total stands at 10 members.
1986
Spain and Portugal become members, bringing the total to 12.
1990
East Germany was folded in by way of its unification with West Germany after the fall of the Berlin Wall.
1993
The Maastricht Treaty formally establishes the European Union (EU).
1995
Austria, Finland, and Sweden join the EU, bringing the total to 15 members.
2002
The Euro is introduced as the.
Hedge funds offer qualified investors a unique partnership. While hedge funds first began as a way to offer investors a balanced – or market-neutral – approach to investing, the methods have evolved through the years. This presentation focuses on one of those strategies, multi-strategy funds
Hedge funds offer qualified investors a unique partnership. While hedge funds first began as a way to offer investors a balanced – or market-neutral – approach to investing, the methods have evolved through the years. This presentation focuses on one of those strategies, event driven.
Hedge funds offer qualified investors a unique partnership. While hedge funds first began as a way to offer investors a balanced – or market-neutral – approach to investing, the methods have evolved through the years. This presentation focuses on one of those strategies, managed futures.
Hedge funds offer qualified investors a unique partnership. While hedge funds first began as a way to offer investors a balanced – or market-neutral – approach to investing, the methods have evolved through the years. This presentation focuses on one of those strategies, credit funds.
This educational infographic offers users a straightforward view into the many strategies that hedge funds utilize to provide portfolio diversification, risk management, and reliable returns to their investors.
Included among the strategies featured in the infographic are:
Long/Short Equity Funds
Global Macro
Event Driven
Relative Value
Credit Funds
Quantitative Funds
Multi-Strategy Funds
Managed Futures (CTAs)
Learn more about the global hedge fund industry at: www.hedgefundfundamentals.com.
Hedge Fund Fundamentals' first educational infographic provides an easy-to-read and accessible way to learn basics about hedge funds. Not only will users learn about industry assets under management, when hedge funds were created, and how they assist institutional investors meet their financial obligations, but the infographic also offers graphic representations of various aspects of the industry and its benefits to investors.
Learn more about the global hedge fund industry at: www.hedgefundfundamentals.com.
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
Abhay Bhutada Leads Poonawalla Fincorp To Record Low NPA And Unprecedented Gr...Vighnesh Shashtri
Under the leadership of Abhay Bhutada, Poonawalla Fincorp has achieved record-low Non-Performing Assets (NPA) and witnessed unprecedented growth. Bhutada's strategic vision and effective management have significantly enhanced the company's financial health, showcasing a robust performance in the financial sector. This achievement underscores the company's resilience and ability to thrive in a competitive market, setting a new benchmark for operational excellence in the industry.
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
Lecture slide titled Fraud Risk Mitigation, Webinar Lecture Delivered at the Society for West African Internal Audit Practitioners (SWAIAP) on Wednesday, November 8, 2023.
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
1. Elemental Economics - Introduction to mining.pdfNeal Brewster
After this first you should: Understand the nature of mining; have an awareness of the industry’s boundaries, corporate structure and size; appreciation the complex motivations and objectives of the industries’ various participants; know how mineral reserves are defined and estimated, and how they evolve over time.
How Does CRISIL Evaluate Lenders in India for Credit RatingsShaheen Kumar
CRISIL evaluates lenders in India by analyzing financial performance, loan portfolio quality, risk management practices, capital adequacy, market position, and adherence to regulatory requirements. This comprehensive assessment ensures a thorough evaluation of creditworthiness and financial strength. Each criterion is meticulously examined to provide credible and reliable ratings.
1. EU Regulation 101
Guide to European Oversight of the Hedge Fund Industry
Hedge Fund Fundamentals | March 2014
2. Introduction
2
Hedge funds play a vital role in helping a wide range of institutions – from
pensions to endowments to non-profits – meet their financial obligations.
In Europe, hedge funds oversee roughly $549 billion in assets, according
to a recent report by Preqin1.
In 2011 a new financial services regulatory structure took effect, which
included the creation of the three new European Supervisory Authorities.
This guide provides a brief overview of the European policymaking and
new regulatory structure, and provides information on several issues of
specific concern to hedges funds – and the institutions that invest in them.
1Source: Preqin, February 2013
3. About the European Union
3
The European Union (EU) is an economic and
political union of 28 Member States. The EU was
established in its current form in 1993 by the
Maastricht Treaty. The Treaty of Lisbon, the latest
amendment to the constitutional basis of the EU,
came into force in 2009.
The EU operates through a system of
supranational independent institutions.
These include the European Commission,
the Council of the European Union, the European
Council, the Court of Justice of the European
Union, and the European Central Bank. The
European Parliament is elected every five years.
According to the EU, its policy making is focused
on ensuring the free movement of people, goods,
services, and capital.
4. Important Institutions of the EU
4
The European Commission is the executive body of the European Union. The body is
responsible for proposing legislation, implementing decisions, upholding the Union’s
treaties, and the general day-to-day running of the Union.
The Council of the European Union (sometimes called the Council or the Council of
Ministers) is the legislative institution that represents the executives of member
states (the other legislative body being the European Parliament).
The European Parliament is the directly elected parliamentary institution of the EU.
Together with the Council of the European Union and the European Commission, it
exercises the legislative function of the EU.
The European Council is comprised the EU heads of state, the President of the
European Commission, and the President of the European Council. The European
Council has no formal legislative power. However, under the Treaty of Lisbon, it
defines “the general political directions and priorities" of the Union.
The European Central Bank is the EU institution that administers the monetary
policy of the 17 EU Eurozone member states. The bank was established by the Treaty
of Amsterdam in 1998, and is headquartered in Frankfurt, Germany.
European
Commission
Council of the
European Union
European
Parliament
European
Council
European
Central Bank
5. 5
In 2009, in response to the financial crisis, the European Commission proposed a new
framework for financial supervision: The European System of Financial Supervisors
(ESFS).
The ESFS is an institutional architecture of the EU's framework of financial supervision.
It is composed of three authorities: the European Banking Authority, the European
Insurance and Occupational Pensions Authority, and the European Securities and
Markets Authority.
ESFS
European System of Financial Supervisors
EBA
European Banking
Authority
EIOPA
European Insurance
and Occupational
Pensions Authority
ESMA
European Securities
and Markets
Authorities
European System of Financial
Supervisors
6. 6
In January 2011, the new framework was implemented, with the EBA,
EIOPA, and ESMA taking on the responsibilities of previously existing
regulatory bodies.
EBA
European Banking
Authority
Committee of
European Banking
Supervisors
EIOPA
European Insurance
and Occupational
Pensions Authority
Committee of
European Insurance
and Occupational
Pensions Supervisors
ESMA
European Securities
and Markets
Authorities
Committee of
European Securities
Regulators
NEW
OLD
New Regulatory Framework
7. 7
To complement this framework, there is also a European Systemic Risk
Board (ESRB). The ESRB is an independent body within the EU,
responsible for the macro-prudential oversight of the financial system
within the Union. Board Members of the ESRB include members of the
European Central Bank, National Bank Governors, and Chairs of
European Supervisory Authorities (ESAs).
ESRB
European Systemic Risk Board
European Systemic Risk Board
8. 8
EBA
European Banking
Authority
EIOPA
European
Insurance and
Occupational
Pensions Authority
ESMA
European
Securities and
Markets
Authorities
ESRB
European Systemic
Risk Board
Headquartered in Paris, ESMA is responsible for safeguarding the stability of the European Union’s
financial system by ensuring the integrity, transparency, efficiency, and orderly functioning of securities
markets, as well as enhancing investor protection. It coordinates the work of securities regulators, and
across financial sectors by working closely with the other authorities, in particular the EBA and EIOPA.
ESMA is part of the European System of Financial Supervisors (ESFS).
Headquartered in Frankfurt, EIOPA regulates certain activities of credit institutions, financial
conglomerates, investment firms, insurance and reinsurance companies, and payment institutions. It is
responsible for supporting the stability of the financial system, transparency of markets and financial
products, as well as the protection of insurance policy holders and pension members and beneficiaries.
EIOPA is part of the ESFS.
Headquartered in London, the EBA regulates European banks. The EBA has the power to overrule
national regulators, prevent regulatory arbitrage, and promote fair competition throughout the EU
Common Reporting (COREP) is the standardized reporting framework covering: credit risk, market risk,
operational risk, own fund and capital adequacy ratios. EBA is part of the ESFS.
Headquartered in Frankfurt, the ESRB is responsible for the macro-prudential oversight of the financial
system within the EU to help mitigate or prevent systemic risks to financial stability. It is charged with
contributing to the smooth functioning of the EU’s internal market and ensuring a sustainable
contribution of the financial sector to economic growth.
The New EU Regulatory Framework
9. 9
ESMA is the coordinating body for EU
Member State financial regulators.
European Securities and Markets
Authority (ESMA)
10. 10
Role and Responsibilities
ESMA is responsible for coordinating actions of securities supervisors or adopting
emergency measures when a crisis situation arises.
ESMA is responsible for helping establish and implement a single set of
financial rules across Europe. ESMA has two primary goals:
• Ensure consistent treatment of investors across the EU, providing adequate
investor protection through effective regulation and supervision.
• Promote fair and equal competition among financial service providers and
ensure effective and cost-efficient supervision of supervised companies.
According to ESMA, the organization “contributes to the financial stability of the
European Union, in the short, medium and long-term, through its contribution to the
work of the European Systemic Risk Board, which identifies potential risks to the
financial system and provides advice to diminish possible threats to the financial
stability of the Union.”
While ESMA is independent, there is full accountability to the European Parliament,
Council of the EU and European Commission.
Source: www.esma.europa.eu/page/esma-short
More About ESMA’s Role
11. 11
Financial regulation in the EU is governed by the Lamfalussy Framework which
established the legislative approach to securities law.
It was adopted by the EU in the final report of the Committee of Wise Men on the
Regulation of European Securities Markets (an expert committee chaired by Baron
Alexandre Lamfalussy).
The Lamfalussy Framework proposed a four-level approach to European securities
legislation:
It first applied to the securities sector and was later extended to banking, insurance, and
pensions.
The framework has been brought into compliance with the Treaty of Lisbon, which entered
into force in 2009, and the ESA and ESRB Regulations, which entered into force in 2010
and 2011, respectively.
Baron Alexandre Lamfalussy
EU Regulatory Process
13. 13
There are a number of regulations currently under consideration in the EU that are
of specific interest to hedge funds. These include:
1. Alternative Investment Fund Managers Directive (AIFMD)
2. European Market Infrastructure Regulation (EMIR)
3. Short Selling Regulation
4. Review of Markets in Financial Instruments Directive (MiFID II)
5. Market Abuse Directive (MAD)
EU Regulations of Interest to
Hedge Funds
14. 14
In April 2009, the European Commission proposed a Directive on Alternative Investment
Fund Managers (AIFMs) with the objective of creating a comprehensive regulatory
framework for European Alternative Investment Fund Managers.
The proposed Directive was developed to help create common regulatory standards for all
AIFMs that met specific criteria. The final agreement on the framework Directive (Level I)
was achieved in November 2010 and the text entered into force in July 2011.
The Commission asked the European Securities and Markets Authority (ESMA) to provide
technical advice on the implementing measures of the AIFMD (Level 2).
ESMA and the European Commission have continued to develop implementation
measures throughout 2013.
Member States were to have transposed the Directive and its implementing measures by
July 2013, however, at the time of publication less than half of the 28 EU Member States
have done so.
ESMA continues to develop guidelines on the AIFMD in a number of areas.
The final text of the AIFM Directive (July 2011) is here. More information on AIFMD here.
Sources:
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2011:174:0001:0073:EN:PDF
http://ec.europa.eu/internal_market/investment/alternative_investments_en.htm
Alternative Investment Fund Managers
Directive (AIFMD)
15. 15
In September 2010, the European Commission published a proposal for a
Regulation on OTC derivatives, central counterparties (CCPs), and trade
repositories, now commonly referred to as the European Markets Infrastructure
Regulation or “EMIR.” EMIR entered into force on August 16, 2012. ESMA and
the European Commission continue to develop technical standards on
implementation. EMIR is currently in its Level 2 implementation phase, with
recent consultations coming from ESMA and other ESAs.
Notably, EMIR calls for:
• All OTC derivative contracts considered ‘eligible’, entered into between any
financial and certain non-financial counterparties (subject to conditions), will
be required to be cleared by a CCP;
• All OTC derivative contracts not considered ‘eligible’ shall be subject to risk
mitigation requirements, including the exchange of collateral or a
proportionate holding of capital;
• Counterparties to an OTC derivatives trade (cleared or not) shall report
details of that trade to a trade repository;
• CCPs shall be subject to registration and prudential and conduct of business
regulation; and
• Trade repositories shall be subject to conduct of business regulation.
European Market Infrastructure
Regulation (EMIR)
16. 16
In November 2011, European negotiators reached an agreement on an EU
Regulation on Short Selling and certain aspects of credit default swaps. The
regulation, which entered into force on November 1, 2012, was designed to
establish a common regulatory framework and ensure greater coordination and
consistency between Member States. Among other items, the new regulation:
1. Requires public disclosure of short positions over a certain threshold
2. Requires parties entering into a short sale to have borrowed the instruments,
entered into an agreement to borrow them, or made other arrangements to
ensure they can be borrowed in time to cover the deal.
3. Requires notification of significant positions in credit default swaps that relate to
EU sovereign debt issuers.
4. Provides competent authorities with temporary power to require greater
transparency or impose certain restrictions on short selling and credit default
swap transactions.
Both ESMA and the European Commission were to conduct a review of the Short
Selling Regulation by the end of June 2013. ESMA released its findings on June
3, 2013; ultimately, it did not recommend significant changes to the regulation.
As of publication, the European Commission has yet to release its review of the
Short Selling Regulation. More information on EU short selling regulation can be
found here.
Source: http://ec.europa.eu/internal_market/securities/short_selling_en.htm
Short Selling Regulation
17. 17
The Markets in Financial Instruments Directive (MiFID) came into force in November 2007. It
replaced and expanded the Investment Services Directive. Its objective was to increase the integration
and efficiency of EU financial markets.
MiFID established a common regulatory framework for investment services in financial instruments
across the EU and for the operation of regulated markets by market operators.
The European Commission is currently reviewing the MiFID framework. In October 2011, the European
Commission adopted proposals for (i) a revised Directive and (ii) a new Regulation (MiFIR). Both the
European Parliament and Council of the EU have approved their respective reports on the MiFID
proposal and are currently (September 2013) engaged in trialogue with the European Commission.
Between them, these proposals:
• Extend the existing regulatory framework both in terms of instruments and firms covered, so that,
for example, certain commodity trading firms will fall within scope of the regime;
• Impose regulatory requirements on firms undertaking algorithmic trading (including HFT);
• Impose position limits on the trading of commodity derivatives;
• Impose restrictions on third country firms providing services in the EU;
• Introduce enhanced corporate governance requirements for investment firms; and
• Introduce enhanced pre- and post-trade transparency provisions in respect of both equities and
non-equities.
More information about MiFID and MiFIR is available here.
Source: http://ec.europa.eu/internal_market/securities/isd/index_en.htm
Markets in Financial Instruments Directive
(MiFID) II
18. 18
In May 2001, the European Commission proposed a directive to
address insider dealing and market manipulation within the EU. The
Market Abuse Directive (MAD) aimed to enhance the integrity of
European markets by implementing common standards throughout all
Member States.
Currently (September 2013), negotiations among the European
Parliament, Council of the EU, and the European Commission are
close to finishing.
More information on MAD available here.
Source: http://ec.europa.eu/internal_market/securities/abuse/index_en.htm
Market Abuse Directive (MAD)
19. 19
European Resources:
European Commission
http://ec.europa.eu/index_en.htm
European Parliament
http://www.europarl.europa.eu/news/en/
headlines/
Council of the European Union
http://consilium.europa.eu/homepage?la
ng=en
European Securities and Market
Authority (ESMA)
www.esma.europa.eu/
European Banking Authority (EBA)
http://www.eba.europa.eu/
European Insurance and Occupational
Pensions Authority (EIOPA)
https://eiopa.europa.eu/
European Systemic Risk Board
www.esrb.europa.eu
European Central Bank
http://www.ecb.int
For more information, please visit www.hedgefundfundamentals.com
References