With world financial markets in turmoil and the economic prospects of many European countries looking weak this is a vital and challenging time for all involved with the treasury profession. Against this background, as Chairman of the EACT, I will continue to seek to provide a unifying focus for issues that, on a European level, affect how the members of the national associations can operate.
Through our website we endeavor to provide useful informative about the EACT and provide a conduit for visitors to access the websites of the individual treasury associations making up the EACT.
The EACT has sent a letter to the European Banking Authority (EBA) concerning the work currently undertaken by the EBA on the implementing measures of the Capital Requirements Regulation, and in particular the work carried out concerning the Credit Valuation Adjustment (CVA) risk capital charge calculation. We are concerned that the EBA’s approach would undermine non-financial companies’ ability to use of OTC derivatives in order to mitigate risk arising from their business and are requesting the EBA not to put in question the exemption already granted to non-financial counterparties. Click here to read >>
EACT filed an official complaint to the European Ombudsman in March 2014 concerning the composition of the European Securities and Markets Authority’s (ESMA) main stakeholder group, the Securities and Markets Stakeholder Group (SMSG). The SMSG helps facilitate consultation by ESMA with stakeholders in areas relevant to ESMA’s tasks such as the development of technical standards and guidelines.
The SMSG is composed of 30 individuals expected to represent ESMA’s key stakeholder constituencies such as academics, consumers, financial market participants and users of financial services. The essence of our complaint is that the EACT believes the composition of the current SMSG does not adequately reflect ESMA’s real stakeholder constituencies, as non-financial companies have not been included whilst other stakeholder groups seem to be over-represented. Non-financial companies are important users of financial services and are subject to and materially impacted by a number of legislative measures being dealt with by ESMA.
The Ombudsman has accepted the complaint for handling and forwarded it for comment by ESMA. The latter made a formal response and the EACT has now written to the Ombudsman; we reiterate some of our initial concerns and comment additionally on how ESMA seeks to defend its actions. The EACT’s letter is here.
It is expected that it could take at least one year for the Ombudsman to reach a decision on the complaint.
The EACT is writing to raise ESMA’s attention to the difficulties that companies have been and still are facing when implementing the new changes to the reporting files requested by the trade repositories. It should be noted that as a result many companies will fail to meet the 1st December 2014 deadline which is currently being imposed on them by the TRs. Read the letter here >>