ESMA to allow decision on reporting of net short position of 0,1% and above to expire

The European Authority has decided not to renew its decision to require holders of net short positions in shares traded on a European Union (EU) regulated market, to notify the relevant national competent authority (NCA) if the position reaches, exceeds or falls below 0.1% of the issued share capital. The measure, which has applied since 16 March 2020, will expire on 19 March 2021. From 20 March 2021 onwards, positions holders will need to send notifications only if they reach or exceed the 0.2% threshold again, while any outstanding net short position between 0.1% and 0.2% will not have to be reported.

EBA published its second Report on the monitoring of liquidity coverage ratio (LCR) implementation in the EU.

This Report, which complements the one published on 12 July 2019, highlights areas in which further guidance is deemed useful for banks and supervisors in order to foster a common understanding and harmonisation of the application of the liquidity standard across the EU, as well as to reduce some level playing field issues. The EBA will continue regularly monitoring the implementation of the LCR for EU banks and will update these reports on an ongoing basis to set out its observations and provide further guidance, where necessary.

In particular, this second Report assesses the effects of the guidance issued in the first Report and provides guidance on the treatment of fiduciary deposits, LCR optimisation risk, interdependent inflows and outflows and assessment of deposit guarantee schemes (DGS) conditions for a 3% outflow rates in stable retail deposits. In addition, the Report discusses a number of items in the context of a crisis, in particular in view of the COVID 19 pandemic: the usage of liquidity buffers, guidance on unwinding mechanism waivers, recourse to central bank support and additional outflows from derivatives.

EBA published two Reports on the consistency of risk weighted assets (RWAs) across all EU institutions authorised to use internal approaches for the calculation of capital requirements for 2020.
The Reports cover credit risk for high and low default portfolios (LDPs and HDPs), as well as market risk. The results confirm that the majority of risk-weights (RWs) variability can be explained by fundamentals. These benchmarking exercises are a fundamental supervisory and convergence tool to address unwarranted inconsistencies and restoring trust in internal models.

On the Official Journal of the European Union has been published the Commission Implementing Regulation (EU) 2021/453

of 15 March 2021 laying down implementing technical standards for the application of Regulation (EU) No 575/2013 of

the European Parliament and of the Council with regard to the specific reporting requirements for market risk.

(only in Italian)

Pubblicato in Gazzetta Ufficiale n. 64 del 15 marzo 2021, il decreto del Ministero della giustizia n. 33 del 12 gennaio 2021 avente ad oggetto il Regolamento che apporta delle modifiche al decreto del Ministro della giustizia 7 novembre 2001, n. 458, recante disposizioni sul funzionamento dell’archivio informatizzato degli assegni bancari e postali e delle carte di pagamento (cosiddetta Centrale di allarme interbancaria, CAI).

Le modifiche tengono conto delle novità apportate dal Regolamento (UE) 2016/679 e concernono la disciplina delle modalità di trasmissione, rettifica ed aggiornamento dei dati da inserire nell’archivio sopracitato, nonché le modalità con cui la Banca d’Italia provvede al trattamento dei dati trasmessi e ne consente la consultazione

Consob published the Warning Notice no. 4/2021 of 15 March 2021 on the information to be provided with reference to the 2020 financial statements drawn up on the basis of the provisions of the Civil Code and national accounting standards.

The Warning notice is addressed to issuers of financial instruments widely distributed among the public pursuant to the Article no. 116 of the TUF (Consolidated Law on Finance), to issuers of financial instruments traded on multilateral trading facilities (“MTF”) and on organized trading facilities (“OTF”) subject to EU Regulation no. 596/2014 (“MAR”) and the related auditing companies and control bodies.

Bank of Italy has released six new Working Papers (nn. 1321-1326).

No. 1326 – Financial structure and bank relationships of Italian multinational firms

No. 1325 – Foreclosures and house prices

No. 1324 – Modelling and forecasting macroeconomic downside risk

No. 1323 – Unconventional monetary policies and expectations on economic variables

No. 1322 – Judicial efficiency and bank credit to firms

No. 1321 – The power of text-based indicators in forecasting the Italian economic activity