The three European Supervisory Authorities (EBA, EIOPA and ESMA, jointly ESAs) have issued a statement welcoming the European Systemic Risk Board’s (ESRB) recommendation on systemic cyber risk, which calls on the ESAs to gradually develop a pan-European system for coordinating cyber incidents (EU-SCICF).
The initiative will support an effective and coordinated response at EU level in the event of a serious cross-border cyber incident that could have a systemic impact on the EU financial sector.
The ESRB Recommendation also proposes that the ESAs, in consultation with the European Central Bank and the ESRB, conduct a mapping and subsequent analysis of current impediments, legal and other operational barriers for the effective development of the EU-SCICF.
ESMA is seeking input from stakeholders on a potential review of its Regulatory Technical Standards (RTS) with the aim of harmonising the existing APC margin measures for CCPs as well as specific anti-procyclicality tools.
The consultation will end on 31 March 2022.
The aim of this survey is to gauge and better understand the potential take-up of PEPP by eligible providers (asset managers, insurance undertakings, IORPs and credit institutions, including banks).
The consultation will end on 28 February 2022.
The Call for advice relates to the implementation of the European Commission’s Capital Markets Union Action Plan and, more specifically, its Retail Investment Strategy, which aims to improve consumer outcomes and increase consumer participation in capital markets.
EIOPA presents its proposals in five different areas in the consultation paper:
- Enhancing consumer engagement with disclosures, including digital disclosures;
- Assessing the risks and opportunities presented by new digital tools & channels;
- Tackling damaging conflicts of interest in the sales process;
- Promotion of an affordable and efficient sales process;
- Assessing the impact of complexity in the retail investment product market.
The consultation will end 25 February 2022.
EIOPA published its third paper on the methodological principles of insurance stress testing.
The methodological paper focuses on the climate change component and is a further step in enhancing EIOPA’s stress testing framework. In particular, the paper sets out methodological principles that can be used to design bottom-up stress test exercises that aim to assess the vulnerability of insurers to climate risks.
In particular, the 2022 climate risk stress tests are a complex exercise based on three different modules:
- Module 1 consists of a questionnaire designed to get an overview of the institution’s internal stress-testing capability and capacity;
- Module 2 focuses on two climate risk metrics, providing an insight into the sensitivity of banks’ income and exposures to transition risk;
- Module 3 comprises bottom-up stress testing, focusing both on transition risk and physical risk.
ISDA has published the report: ‘Transition to Risk-free Rates (RFRs) Review’ for 2021 to the fourth half of 2021.
The report analysed the trading volumes of over-the-counter (OTC) and exchange-traded (IRD) interest rate derivatives that reference alternative risk-free rates (“RFRs”), including the Secured Overnight Financing Rate (SOFR), the Sterling Overnight Index Average, the Swiss Average Rate Overnight, the Tokyo Overnight Average Rate, the Euro Short-Term Rate and the Australian Overnight Index Average.
