Authorities in Bulgaria, Denmark and Croatia have issued new product intervention measures and the European Securities and Markets Authority (ESMA) welcome them.
One of the EU financial watchdog’s roles is to supervise the product market interventions authorities in different member states. That is just what three national competent authorities in Bulgaria, Denmark and Croatia have done.
The Danish authority Finanstilsynet of Denmark has proposed product intervention measures relating to contracts for differences.
The Financial Supervision Commission of Bulgaria has proposed product intervention measures relating to contracts for differences.
The Hrvatska agencija za nadzor financijskih usluga of Croatia has proposed two changes. The first is regarding proposed product intervention measures relating to contracts for differences. The second is regarding proposed product intervention measure relating to binary options.
ESMA has welcomed all four of these changes as they are “at least as stringent as ESMA’s measures.”
If ESMA had not given its thumbs up, it has the power to temporarily restrict or prohibit the marketing, distribution or sale of financial products. This power was granted to regulator through the Markets in Financial Instruments Directive (MiFID II). The financial products that can face interventions are things like shares, bonds and derivatives.
Speaking of the latter, in July 2019 The Basel Committee on Banking Supervision and the International Organization of Securities Commissions extended the implementation for new international margin requirements for non-centrally cleared derivatives by one year. The final implementation will now happen on September 1 2021 to enable more organizations to ensure they are compliant with the new standard.
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