NO 246 – AUGUST 2013

WFE Focus

ASX publishes code of practice for clearing and settlement of cash equities

The Australian Securities Exchange released the Code of Practice for Clearing and Settlement of cash equities in Australia which will be effective from 9 August 2013. The Code has received final approval from the Boards of ASX, ASX Clear and ASX Settlement. It has also been reviewed by the Council of Financial Regulators. It sets out, in particular, ASX’s commitment to establish to transparent and non-discriminatory pricing of clearing and settlement services, and transparent and non-discriminatory terms of access to clearing and settlement services.

CFTC issues rules to implement enhanced risk management standards

The US Commodity Futures Trading Commission approved final rules to implement enhanced risk management standards for systemically important derivatives clearing organizations (SIDCO). The adoption of these rules is an important first step in making the CFTC’s rules for SIDCOs fully consistent with the Principles for Financial Market Infrastructures, thereby enabling them to continue to be Qualifying Central Counterparties.

IOSCO issues report on authorities’ access to trade repository data

The International Organization of Securities Commission and the Committee on Payment and Settlement Systems have published a report entitled Authorities’ access to trade repository data. Trade repositories are entities that maintain a centralized electronic record of OTC derivatives transaction data. They play a key role in increasing transparency in the OTC derivatives markets by improving the availability of data to authorities and the public in a manner that supports the proper handling and use of the data. The purpose of the report is to provide guidance to trade repositories and authorities on the principles that should guide authorities’ access to data held in trade repositories for typical and non-typical data requests.

Japan’s FSA signs MoC with EU national securities regulators

On 19 July 2013, the Japan’s Financial Services Agency signed Memorandums of Cooperation with national securities regulators in the EU related to the supervision of funds and fund managers conducting their business on a cross-border basis. According to the MoCs, the FSA and the national securities regulators will exchange regulatory information upon request by each authority.

US SEC and European regulators sign MoUs

The US Securities and Exchange Commission has established supervisory arrangements with financial regulators of the member states of the European Union and the European Economic Area as part of long term strategy to improve the oversight of certain entities in the asset management industry that operate across national borders. The Memoranda of Understanding provide a framework for supervisory cooperation and exchange of information and were concluded with 25 EU and 3 EEA member-state regulators. 

Singapore Exchange introduces new rules on poll voting and general meetings

The Singapore Exchange introduced new listing rules to promote greater transparency in general meetings and support listed companies and trusts in enhancing their shareholder engagement. These new rules include holding of general meetings in Singapore, voting by poll for all resolutions, and disclosures of relevant details on voting outcomes. Listed companies and trusts have a two-year period to implement the poll voting processes and disclosure of voting outcome.