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01 april 2015

New rules to strengthen transparency and security


Over the past five years, the European Union has adopted some twenty reforms to strengthen the security of the banking and financial system:

  • the capital and liquidity requirements introduced by CRD IV and the CRR regulation beginning in January 2014 contribute to the financial strength of the banking sector. These measures have been completed, in compliance with the CRR ruling, by two delegated acts of the European Commission :
    - on one hand, the mode of calculation of the leverage ratio that banks must publish as of 1 January 2015,
    - on the other, the composition of the coverage ratio in terms of liquidity requirements LCR (Liquidity Coverage Ratio) which will be introduced as of October 2015.

  • The gradual application of the European Market Infrastructure Regulation (EMIR) set up a more reliable and transparent derivatives market, notably through clearing OTC derivatives via a central counterparty (CCP) and reporting of all derivatives to a trade repository.

  • The reform of the Markets in Financial Instruments Directive (MiFID II/MiFIR) published in June 2014 strengthened the protection of investors, improve the operation of market infrastructures and transparency.

  • The protection of investors has also been following the adoption of the Regulation of 26 November 2014 harmonsing the format and content of pre-contractual information for retail investment products (the PRIIPs Regulation).
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