L'AMAFI et le cabinet Gide ont le plaisir de vous inviter à la conférence :
6 MOIS DE JURISPRUDENCE AMF EN 60 MINUTES
Retour sur les décisions publiées au 1er semestre 2024
par la Commission des sanctions de l'AMF et les juridictions de recours
JEUDI 10 OCTOBRE DE 9H00 À 10H00
Avec
THIEBALD CREMERS, Directeur des Affaires Juridiques de l'AMAFI
JEAN-PHILIPPE PONS-HENRY, Avocat associé, Gide
MARIE ROBERT-SCHMID, Avocate counsel, Gide
QUENTIN VREULX, Avocat, Gide
LOUIS MARTIN, Avocat, Gide
Eurofi held its Financial Forum in Budapest from 11 to 13 September. The event took place at a crucial time, with the European Union in the midst of institutional renewal, and Mario Draghi’s recent report on European competitiveness fuelling discussions about the impacts on the roadmap of the new Commission (see Editorial).
AMAFI’s meetings focused on its proposals (AMAFI / 23-88) for the Capital Markets Union, which the Letta Report has suggested rebranding as a Savings and Investment Union, and drew attention to the challenges involved in switching to T+1 settlement.
AMAFI Chairman Stéphane Giordano, Director of European and International Affairs Arnaud Eard, and several members of the European Action Committee met with institutional representatives, including Stéphanie Yon-Courtin, member of the European Parliament’s Committee on Economic and Monetary Affairs, Martin Merlin, Financial Markets Director at DG FISMA, as well as finance ministry representatives from ten member states.
AMAFI’s proposals for the Savings and Investment Union (AMAFI / 24-56) were broadly welcomed, especially those aimed at nurturing less developed local markets. There was also general agreement about reviving Europe’s securitisation market and channelling household savings to finance the European economy through tax incentives and a European label. By contrast, proposals on reforming the governance of ESMA and shifting towards more centralised supervision for cross-border activities received more muted support. Those reactions raised questions about the political will needed to carry out structural reforms in order to build deep and competitive capital markets.
On shortening the settlement cycle (AMAFI / 24-57), it is now apparent that Europe is set to follow the lead of the United States and several other countries that recently moved to T+1. AMAFI’s talking partners seemed receptive to the argument that the work areas needed to support a successful move should be identified before setting a date for the switchover. The unique infrastructure and liquidity features of Europe’s markets must be accommodated to ensure that these markets stay efficient and competitive. These issues should likewise be foremost when organising the vital coordination with UK and Swiss authorities
As part of the MiFID II and MiFIR review, ESMA has drawn up Level 2 measures on which it is holding consultations. Key areas of focus include equity market transparency (still underway), non-equity market transparency (AMAFI / 24-51), the consolidated tape (AMAFI / 24-50), commodities (AMAFI / 24-49), a reasonable commercial basis for the cost of market data (AMAFI / 24-51) and reference data (RTS 23) (AMAFI / 24-53).
Given the Commission President’s keenness to simplify the regulatory framework and promote a competitive European economy, AMAFI stressed three major points in its consultation feedback:
Switch to T+1
In view of the clear determination to shorten the securities settlement cycle to one day, AMAFI considers that it is now critical to concentrate on the prerequisites needed to support a smooth transition within the European Union, which include:
Ensuring that the settlement process is tailored to a T+1 cycle from end to end.
Adopting an asset class-based approach, paying particular attention to corporate and sovereign bonds and exchange-traded funds.
Temporarily suspending and adjusting the CSDR penalties regime (see below).
AMAFI stressed (AMAFI / 24-57) that an implementation date should not be chosen until these prerequisites have been properly identified. It also emphasised the need to pay heed to the UK’s timing.
AMAFI has set up a T + 1 working group to look at these questions in greater depth, in partnership with France Post Marché and AFG.
CSDR - Penalties
Given the implications of transitioning from T+2 to T+1, AMAFI put forward several recommendations in the joint response it submitted with France Post Marché to ESMA’s CSDR consultation (AMAFI / 24-58). Among other things, it emphasised the need to adjust settlement discipline rules to avoid excessive penalties, particularly for bonds and ETFs. It also recommended temporarily suspending the CSDR penalties regime for at least three months after T+1 has been implemented and then assessing the need for a further extension.
AMAFI called for a penalty regime that takes account of the specific characteristics of different asset classes and argued that penalties and mandatory buy-ins should be treated separately.
AMAFI published a new version of its liquidity contract charter in early September (AMAFI / 24-48a). The document provides clarifications on operation of the liquidity account, position limits, disclosure of contracts to the AMF and the role of the compliance function.
AMAFI also released new versions of the liquidity contract template (AMAFI / 24-48b) and its accompanying explanatory note (AMAFI / 24-48c). This work was an opportunity to update legislative and regulatory references, to clarify the classification of various securities (illiquid, liquid and highly liquid) and the ban on trading beyond limits set by the AMF, and to add stipulations on initial public offerings and block trades. Clarification was also provided on procedures for takeover of securities.
EFSA is organising a conference on 12 November in Brussels on the competitiveness of European markets in the light of recent initiatives on the topic, including four reports – ESMA, Noyer, Letta and Draghi – as well as the conclusions of the Eurogroup and Council.
The conference will open with an address by Christian Noyer, Honorary Governor of the Banque de France, followed by a panel discussion moderated by Urban Funered, CEO of Sweden’s SSMA, and featuring representatives from European institutions and the private sector, including AMAFI Chairman Stéphane Giordano.
For information and enrolment, contact: secretariat@amafi.fr
