EU-flash: Supervision of central counterparties, Results of the June ECOFIN meeting and Launch of the Brexit negotiations

27/06/2017

La Commission européenne préconise un contrôle plus strict des contreparties centrales. Au cours de la réunion ECOFIN du 16 juin, le Conseil s’est accordé sur sa position concernant l’IFRS9 et un classement harmonisé des instruments de la dette non couverts. Et le 19 juin ont débuté les négociations concernant le départ des Britanniques de l’UE.

Vous trouverez ci-dessous un résumé en anglais de ces différents thèmes.

European Commission proposes more robust supervision of central counterparties (CCPs)

On 13 June 2017, the European Commission published  a proposal to amend the so-called European Market Infrastructure Regulation (EMIR).

The proposal wants to introduce a more pan-European approach to the supervision of EU CCPs, to ensure further supervisory convergence and accelerate certain procedures. The proposal also aims closer cooperation between supervisory authorities and central banks responsible for EU currencies.

For non-EU CCPs, the proposal builds on the existing third-country provisions in EMIR and will make the process to recognise and supervise third-country CCPs more rigorous for those which are of key systemic importance for the EU.

More information.

Results of the ECOFIN meeting: Council agreement on creditor hierarchy, IFRS 9 and large exposures

On 16 June 2017, the Council met in Luxembourg to agree on a package of proposals aimed at reducing risk in the banking industry.

The texts relate to the ranking of unsecured debt instruments in insolvency proceedings in the context of the Bank Recovery and Resolution Directive and transitional arrangements to phase in the regulatory capital impact of the IFRS 9 international accounting standard.

They also provide for a phase-out of provisions on the large exposures treatment of public sector debt denominated in non-domestic EU currencies.

The Council’s Presidency has been asked to start talks with the European Parliament as soon as the Parliament has approved its own negotiating stance.

Full details.

Launch of the Brexit negotiations on the 19th of June

Brexit Minister David Davis met with chief EU negotiator Michel Barnier in Brussels on 19 June. This meeting kicked off the drawn out process of leaving the European Union.

The initial focus will be on expat rights, a financial settlement and "other separation issues”.

Timetable for further negotiations:

  • July 17 – Second round of talks: Officials will continue to work towards securing a Brexit deal, with the discussions likely focusing on citizen’s rights and the UK’s Brexit bill. Their work is expected to carry through into August.
  • October - December – First stage complete: By October 2017, the EU will hope to have the first leg of the Brexit process behind it, with the principles of the divorce covered. Mr Barnier will then recommend that both sides work towards securing a future partnership.
  • October 2018 – Deal deadline: Mr Barnier has expressed his desire to have all talks done and dusted by October 2018. These talks will include discussions on transitional arrangements and the future relationship between the EU and UK.
  • March 2019 – Article 50 deadline: By March 2019 the two years since triggering Article 50 will run out. Any possibility of extending the deadline by an additional year will have to be unanimously ratified by all 27 member of the EU
  • April 2019 – Brexit should be complete: If everything goes according to plan, Britain will leave the European Union by April 2019 – with or without a deal.

Speech by Michel Barnier following the first round of Article 50 negotiations with the UK

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