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Source: European Banking Authority

The European Banking Authority (EBA), in cooperation with the European Securities and Markets Authority (ESMA) and the European Insurance and Occupational Pensions Authority (EIOPA), launched today a short survey addressed to entities within the scope of the initial margin (IM) model authorisation regime introduced by the upcoming revised European Market Infrastructure Regulation (EMIR 3). The deadline for submitting responses is Friday 29 November 2024.

EMIR 3 will introduce important novelties, such as:

• an authorisation regime for IM models used by counterparties in the EU;
• a new EBA central validation function for pro-forma margin models (such as ISDA SIMM);
• a supervision of IM models with greater focus on larger counterparties.

The EBA, in cooperation with ESMA and EIOPA, is seeking general information on entities within the scope of IM model authorisation, as well as specific information relevant for fee calculation and on initial margins and IM models used.

This information will guide the EBA in the setup of its central validation function and inform the EBA’s response to the EU Commission’s Call for advice on a possible Delegated Act on fees received on 31 July 2024. The information will also be used to develop proportionate requirements for entities within the scope of IM model authorisation, especially for smaller entities (the so called “Phase 5” and “Phase 6” entities) – as part of upcoming mandates under EMIR 3.

Consultation process

Entities currently subject to the requirement to exchange initial margin – in accordance with EMIR and under Article 36 of Commission Delegated Regulation (EU) 2016/2251 (the joint ESAs RTS on uncleared OTC derivatives) –  and using at least one IM model to comply with that requirement, are expected to fill in the survey. All entities of a group that are subject to this requirement are expected to fill in the survey separately, at entity level.

Responses should be submitted by Friday, 29 November 2024, via the online tool that can be accessed under the following link: https://ec.europa.eu/eusurvey/runner/IMMVEMIR3

To access the survey, a password must be used, which can be obtained from trade associations and competent authorities. Non-supervised entities can contact eba-immv@eba.europa.eu.

Questions on the survey should be submitted via the contact form available in the online survey tool.

Next steps

Closer to the EMIR 3 publication, the EBA will publish on its website operational clarifications aimed to ensure a smooth, convergent entry into force of EMIR 3 requirements in the EU.

Legal basis and background

On 7 December 2022, the Commission published its proposal to amend EMIR as regards measures to mitigate excessive exposures to third-country central counterparties and improve the efficiency of Union clearing markets. On 7 February 2024, the European Parliament and the Council reached a political agreement on a compromise text (EMIR 3), which was formally endorsed by the two institutions respectively on 4 March 2024 and 14 February 2024.

EMIR 3 is expected, in accordance with its Article 11(12a), to grant EBA the additional task to set up a central validation function for the elements and general aspects of pro-forma models (such as ISDA SIMM), and changes thereto, used or to be used by a subset of financial and non-financial counterparties as part of the risk mitigation techniques used on their portfolios of non-centrally cleared OTC derivatives.

On 31 July 2024, the EBA received a Call for advice on a possible Delegated Act on fees to be charged to financial and non-financial counterparties requiring the validation by EBA of pro-forma models, with the request to submit its response by Q2 2025. As part of its response, the EBA is requested to provide a ‘quantitative and qualitative cost-benefit analysis of all the options considered and proposed’ and to ‘widely consult market participants’.

Source: European Banking Authority

The European Banking Authority (EBA) launched today a public consultation on its draft Regulatory Technical Standards (RTS) and Implementing Technical Standards (ITS) on structural foreign exchange (FX), under the Capital Requirements Regulation (CRR). These standards will contribute to provide further clarity and consistency to the structural FX provision across the EU. The consultation runs until 7 February 2025.

The proposed RTS largely follow the existing EBA Guidelines on this topic, but introduce several key changes to enhance clarity and consistency, including:

• Quantitative thresholds: a clear threshold for a currency to be eligible for structural FX treatment, aiming to reduce variability across institutions in identifying relevant currencies.
• Maximum open position computation: allowing banks to consider only credit risk own funds requirements when determining the position neutralising sensitivity to capital ratios, where credit risk drives ratio variability.
• Clarifications on risk positions: further details on how institutions should remove FX risk positions from own funds requirements.
• Policies for illiquid currencies: special provisions for currencies that are illiquid in the market, for instance, due to Union restrictive measures.

The ITS, on the other hand, propose a template for reporting information linked to the Structural FX waiver, and support the monitoring of the Structural FX waiver on an on-going basis.

Consultation process

​Comments to this consultation can be sent to the EBA by clicking on the “Send your comments” button on the consultation page. Please note that the deadline for the submission of comments is 7 February 2025. All contributions received will be published following the close of the consultation, unless requested otherwise.

​A public hearing will take place in the form of a webinar on 3 December 2025, 14:00 – 15:00 CET. The EBA invites interested stakeholders to register using this link by 28 November 2025, 18:00 CET. The dial-in details will be communicated to the registered participants after the registration deadline.

​Legal basis and background

Article 104c of Regulation (EU) No 575/2013 (Capital Requirements Regulation – CRR), mandates the EBA to develop draft RTS specifying (a) the risk positions that an institution can deliberately take in order to hedge, at least partially, against the adverse movements of foreign exchange rates on any of an institution’s capital ratios; (b) how to determine the maximum amount that can be waived, and the manner in which an institution shall exclude this amount for each of the approaches set out in Article 325(1) CRR; (c) the criteria that shall be met by an institution’s risk management framework in order to be considered appropriate as regards the treatment of Structural FX positions.

The structural FX provision has been subject to varying interpretations across jurisdictions and institutions. To address these discrepancies and ensure a harmonised application within the EU, in 2020, the EBA published Guidelines on implementing this provision.

Source: European Banking Authority

The European Banking Authority (EBA) published today a draft technical package for version 4.0 of its reporting framework. This publication aims to provide an early version of the 4.0 release given that its reporting obligations will apply as of the first half of 2025. This package, whose final version will be released in December 2024, will facilitate a smoother transition to the new data point model (DPM) semantic glossary and the capabilities of the DPM 2.0 model.

The package provides the standard specifications that include the validation rules, the DPM and the XBRL taxonomies to support the following reporting obligations:

This draft technical package includes a version of the data dictionary contents in both formats the DPM 1.0 and the new format DPM 2.0.

The  DPM Query Tool has also been updated to reflect the current release. 

Background and next steps

The final version of the technical package for the 4.0 reporting framework will be published in December and will include the changes suggested by the three ESAs in the Opinion, published on 15 October, on the European Commission’s (EC) rejection of the draft ITS on the registers of information under the Digital Operational Resilience Act (DORA). Together with this technical package the EBA is publishing a set of Q&As providing additional explanations, including on the next steps as well as on the package to be published in December.

The EBA published in June new Implementing Technical Standards specifying the reporting obligations under Regulation (EU) 2023/1114 on Markets in Crypto-Assets (MiCAR).

Source: European Banking Authority

The European Banking Authority (EBA) published today a Decision setting out the procedural aspects related to the significance assessment of asset-referenced tokens (ARTs) and e-money tokens (EMTs) and the transfer of supervisory responsibilities, including the establishment of supervisory colleges for significant ARTs (s-ARTs) and significant EMTs (s-EMTs).

The Markets in Crypto Assets Regulation (MiCAR) sets out a new supervisory regime for ART and EMT issuers, which includes significance assessments and reassessments of ARTs and EMTs by the EBA, transfer of supervisory responsibilities from national competent authorities to the EBA and the establishment of supervisory colleges for s-ARTs and s-EMTs. 

In its Decision, the EBA details the following procedural aspects:

• it introduces a harmonised reporting calendar for national competent authorities and clarifies the respective reference periods and remittance dates.   
• it clarifies the reporting obligations for issuers of s-ARTs and s-EMTs and the reporting of data relevant for the establishment of the supervisory colleges. 
• it sets out the procedural arrangements and timeline to be followed for the consultation procedures with related parties when the EBA is to notify its draft and final decisions on significance assessment to the home NCA of the issuer, the issuer, the ECB and the national central bank, where relevant.  
• it establishes the procedural steps and information required in this respect to support a smooth transition of supervisory competences between the EBA and national competent authorities for issuers of s-ARTs and issuers of s-EMTs.
• it provides for different templates to facilitate the implementation of the procedure, including a template for national competent authorities’ notification of voluntary classification requests from issuers of ART and EMT and a template for the issuer, the competent authority of the issuer’s home Member State, the ECB and relevant central bank to provide observations and comments in writing to the EBA’s draft decision to classify or to no longer classify an ART or EMT as significant.

Legal basis and background

The EBA Decision EBA/DC/558 was adopted on the basis of Articles 35 and 44 of Regulation (EU) No 1093/2010 (EBA Regulation), and Articles 43, 44, 56, 57, 117, 119 of Regulation (EU) 2023/1114 (MiCAR).

The EBA is responsible for carrying out assessments of ARTs and EMTs in order to identify if they meet the criteria for significance as set out in MiCAR. When classifying an ART or EMT as ‘significant’, the EBA is responsible for carrying out relevant supervisory tasks under MiCAR, including establishing, managing and chairing supervisory colleges. 

The EBA is responsible for conducting direct supervision of issuers of s-ARTs, while s-EMTs (where issued by electronic money institutions) are subject to ‘dual supervision’ by the EBA and the respective home NCA. The EBA will exercise its supervisory powers in close cooperation with any other competent authorities responsible for supervising the respective issuers (in cases where the issuer also carries out other financial services activities). As part of its supervisory activities, the EBA may request information from issuers, conduct investigations, carry out on-site inspections, take supervisory measures and impose fines. 

The EBA is continuously and actively engaging with national competent authorities to ensure it can carry out effectively its supervision mandate under MiCAR.  

Source: Government of the Netherlands

News item | 18-10-2024 | 12:00

Newcomers

That news caused great optimism among the responsible ministers from North Rhine-Westphalia, Belgium and the Netherlands at the Kerkrade conference on the underground telescope.

Following elections and government formation in the Netherlands and Belgium, a number of new ministers in the Netherlands and Belgium are responsible for the Einstein Telescope project. From Wallonia it is Minister Pierre-Yves Jeholet, in Flanders it is Prime Minister Matthias Diependaele and from the Netherlands Minister Eppo Bruins, who also hosted.

Commitment in the 3 countries

Ahead of the summit, it was announced that the new Flemish cabinet is already reserving €200 million for the Einstein Telescope. This is good news. Together with the financial reservation in the Netherlands and the extra boost given by Minister Bruins on Prinsjesdag, a total of more than a billion euros is available for the Einstein Telescope in both countries.
Germany is also taking steps for the Einstein Telescope. There, an application is under way to get the Einstein Telescope on Germany’s priority list for large scientific infrastructure. This is a necessary condition for a financial contribution. Dutch and Belgian ministers have indicated their support for this proposal.

Drilling campaign: hard rock favourable

A key condition for building the Einstein Telescope is that the soil is suitable for it. To determine that, drilling to an average depth of 300 metres was carried out at 11 locations in the border region of Belgium, the Netherlands and Germany. Not all analyses have been completed yet, but the first preliminary conclusions look good. It was found that the subsurface consists of harder rock layers than initially assumed. This is favourable for building an underground research infrastructure. The analysed data from the drillings have been independently verified by the geological service of TNO (Netherlands Organisation for Applied Scientific Research). TNO concurs with the research team’s conclusion based on these initial findings that there are no factors that would make the project unfeasible.
This drilling campaign and the data collected do not yet say anything about exactly where the 3 vertices for the underground telescope will be. Further geological research is needed for that. In addition, seismic surveys must show that the area is sufficiently noise-free to allow the telescope to measure gravity waves optimally. Furthermore, civil engineering studies must show how the construction of the underground tunnels and vertices is possible. In addition, environmental impact studies will help determine the most suitable location.

Einstein Telescope of great value

The Einstein Telescope will be of great value to science, the economy and society. Studies show that every euro invested will pay for itself twice over, and thousands of additional jobs are expected to be created in the border area of the 3 countries. Both for scientists and professionals in the fields of construction, maintenance and hospitality.
The decision on where to build the Einstein Telescope will be made in 2026. The border region of Germany, the Netherlands and Belgium is in the race together, working on the best possible bid book. The Netherlands has €58 million for preparation and a reservation of €870 million for construction.

Quotes from national and regional ministers

Minister Eppo Bruins (OCW) – the Netherlands: ‘Together, we are really another step closer to the Einstein Telescope. The Flemish investment is very good news, and Germany is also taking steps. These agreements and first results of the ground borings mean that the ground under our plan is getting firmer, both literally and figuratively. And that’s good news. Together, we can really give a major boost to science, society and the economy in our countries with the Einstein Telescope.’

State Secretary Thomas Dermine, Belgium: ‘This latest ministerial meeting shows that the Netherlands, Belgium, and Germany continue to make significant daily efforts to ensure that the candidacy of the EMR region for the Einstein Telescope is as solid and coherent as possible. The Belgian federal government, whose administration (BELSPO) coordinates the work of the Belgian Task Force, closely monitors the next steps to be taken to ensure that this high-value scientific project is actually realized in the EMR region. The realization of a European project of this caliber will enhance the EMR cross-border region and demonstrate that Europe is at the top of scientific technology in the field of gravitational wave detection.’

Nathanael Liminski, Minister of Federal, European, International Affairs and Media of the State of North Rhine-Westphalia and Head of the State Chancellery: ‘We are constantly fostering cross-border cooperation between North Rhine-Westphalia, the Netherlands and Belgium for the benefit of the people in the region. Of the many areas and projects in which we work together, the Einstein Telescope stands out in particular. Joint cutting-edge research projects send out the signal that we, as Europe, have the confidence to be among the best in the world. The Einstein Telescope has enormous potential, both scientifically and economically.’

Gonça Türkeli-Dehnert, State Secretary, Ministry of Culture and Research of the State of North-Rhine Westphalia: ‘The research landscape in North Rhine-Westphalia, with its many excellent universities and research institutions, is unique in Europe. I am sure that North Rhine-Westphalia and its partners in the Netherlands and Belgium will be the ideal home for the Einstein Telescope.’

Minister Pierre-Yves Jeholet, Wallonia: ‘This project is of great importance for scientific research and European scientific collaboration, but also for the economy of our regions, which is why the new Walloon Government fully supports this bid through the Economy and Industry Department. Most of this project will be carried out under Walloon soil, and the spin-offs will be significant for our regions. In the coming weeks, the Walloon Government will be expanding its project team to maximise the chances of this joint bid by Germany, the Netherlands, Flanders and Wallonia.’

Flemish Prime Minister Matthias Diependaele: ‘The Einstein Telescope is a unique ‘Big Science’ project. It links fundamental science, technological innovation, attraction of STEM fields and international appeal. A strong commitment from all governments involved will enable us to actually bring this unique scientific infrastructure to the Meuse-Rhine Euroregion. This is why the new Flemish government has already entered an initial reservation of 200 million euros in its budget.’

Deputy Stephan Satijn (Economy, Finance and Business, Public affairs) Province of Limburg (NL): ‘During the ministerial meeting, it became clear that we all want the same thing: to bring the Einstein Telescope to this region. The new ministers are also keeping the Einstein Telescope high on the agenda. With good agreements, we have taken another step forward.’

Source: European Banking Authority

On 3 October , the three European Supervisory Authorities (ESAs) – the European Banking Authority (EBA), the European Insurance and Occupational Pensions Authority (EIOPA) and the European Securities and Markets Authority (ESMA) – organised the 11th edition of their annual Consumer Protection Day, in Budapest.

The event followed the theme of “Empowering EU consumers: fair access to the future of financial services” and had three panels covering the topics of artificial intelligence (AI) in financial services, access to consumer centric products and services, and sustainable finance. Speakers and panellists included leaders from consumer organisations, regulatory authorities, EU institutions, academia, and market participants from across the European Union, with 300 participants on-site and more than 600 viewers online.

Speeches were delivered by the three ESAs Chairs – Verena Ross (ESMA and currently Joint Committee Chair), Jose-Manuel Campa (EBA), and Petra Hielkema (EIOPA) – as well as Csaba Kandrács, Deputy Governor of the Central Bank of Hungary and Agustín Reyna, the Director General of the European Consumer Organisation (BEUC). A fire-side chat also took place with Chris Betz, Chief Information Security Officer of Amazon Web services to discuss generative AI.

On Artificial Intelligence, panellists exchanged views about the potential benefits of AI, such as fraud detection and the automation of processes to detect and prevent money laundering, as well as the risks, such as the lack of transparency and explainability. Panellists emphasised the need to better understand the technology to assess how those risks can be mitigated. Some panellists highlighted the importance for the ESAs to facilitate knowledge sharing, ensure regulatory and supervisory convergence and create the conditions for innovation to grow. Some industry players also called on the ESAs to issue ‘guardrails’ or other guidance on how financial institutions should comply with the new EU AI Act.

During the panel on access to consumer centric financial products and services, panellists discussed the need to strengthen  financial education, pay greater attention to vulnerable consumers, and enable them to understand and access standard financial services packages (payment account, saving account, home/health insurance). The importance of better understanding consumer needs and preserve consumer trust was also highlighted.

On sustainable finance, panellists remarked that investors still struggle to understand the technicalities of  product disclosures and the complex terminology attached to such disclosures. Simplification of the current Sustainable Finance Disclosures Requirements towards a categorisation system that works for retail investors was considered by the panellists to be the main area that regulators should focus on,  in addition to enhancing the financial literacy of retail investors.

The ESAs will reflect on the input and suggestions heard from the audience and the panellists, and discuss the actions to be strenghtened  or to be taken going forward.

See the EBA webpage and the recording of the event here. 

Source: European Banking Authority

The Banking Stakeholder Group (BSG) of the European Banking Authority (EBA) elected Christian Stiefmueller as new Chair during its meeting on 15 October 2024. Mr Stiefmueller, who represents consumers, will be supported by two Vice-Chairs, Julia Strau, and Edgar Loew, representing the financial institutions, and the independent top-ranking academics, respectively. Their mandates run for two years.

Legal basis and background

The BSG is set up according to Article 37 of the EBA Founding Regulation, to help facilitate dialogue and consultation with stakeholders on the work of the EBA.

The BSG is composed of 30 members who serve for a period of four years with the possibility to be renewed for an additional term.

Source: European Banking Authority

The European Supervisory Authorities (EBA, EIOPA and ESMA – the ESAs) today issued an Opinion on the European Commission’s (EC) rejection of the draft Implementing Technical Standards (ITS) on the registers of information under the Digital Operational Resilience Act (DORA). The ESAs raise concerns over the impacts and practicalities of the proposed EC changes to the draft ITS on the registers of information in relation to financial entities’ contractual arrangements with ICT third-party service providers.   

Background and legal basis

Source: Government of the Netherlands

News item | 15-10-2024 | 10:27

The Netherlands is very proud to participate in the Expo 2025 Osaka Kansai Japan, to be held from 13 April to 13 October 2025. With its participation theme “Common Ground,” The Netherlands aims to showcase Dutch innovative solutions in areas such as the energy transition. During Expo 2025, the pavilion intends to provide “Common Ground”: a meeting place for businesses, knowledge institutions, governments and (cultural) organizations to bring together different perspectives and expertise in order to find collective solutions to global challenges.

Marc Kuipers, Commissioner General for the Netherlands at Expo 2025 Osaka

“I am delighted to announce our partners, including two Gold Sponsors, for the Osaka-Kansai Expo 2025. These partnerships represent a crucial step in deepening business and cultural ties between the Netherlands and Japan,” says Mr. Kuipers, “Together with AkzoNobel, Randstad, and Philips, we are excited to work under the theme of ‘Common Ground’, advancing our shared vision and collaboration towards a sustainable future.”

Kaj van Alem, President of AkzoNobel Japan and Global Director for AkzoNobel’s Wood Coatings business

“AkzoNobel is excited to be involved in this incredible initiative at the Osaka World Expo as part of our commitment to a better future. The event will be a tremendous global stage that represents a perfect opportunity for AkzoNobel in Japan, to showcase its extensive portfolio of sustainability-driven innovative solutions.”

Kajetan Slonina, Chairman and CEO, Randstad K.K. / Chief Executive, APAC, Randstad Jos Schut, CHRO, Randstad K.K.& APAC, Randstad

“We are pleased for Randstad to be able to participate in the EXPO 2025 Netherlands Pavilion as a supporting company. Randstad originated in the Netherlands, the country which influenced the way we work. At Randstad we aim to be the world’s most equitable and specialized talent company. We are committed to actively contributing to the creation of a sustainable and better future. We contribute to global society’s needs by promoting fair labor markets, realizing fairness in the workplace, and through the green transition. The Common Ground concept advocated by the Netherlands Pavilion is a vision and a shared mission. We are aligned with this vision, aiming to create a society where everyone can find meaningful and rewarding work, develop the skills they need, and work with vitality as their true selves. We eagerly anticipate the opportunity to meet you on Common Ground and embark on this journey together.”

Sponsorships

The Netherlands Pavilion is still accepting applications from companies and organizations interested in becoming sponsors, as well as organizing events in the event space within the pavilion.

Event space at the Netherlands pavilion available for rent

The event space within the Netherlands Pavilion will be available for external organizations to rent during the Expo.

Details regarding the sponsor packages and event space rental can be found here: https://nlexpo2025.nl/en/organize-event

For more information of the Netherlands participation and the Road2Osaka at Expo 2025 Osaka, Kansai, visit www.nlexpo2025.nl | www.orandaexpo2025.nl

Source: European Banking Authority

• The consultation paper defines the IT solutions and processes that large and other institutions shall follow to publish Pillar 3 information centrally in the EBA data hub.
• The proposed IT solutions leverage the EBA’s past and ongoing work and infrastructures  in the area of disclosures and reporting.
• The Pillar 3 data hub will centralise on the EBA website the Pillar 3 disclosures of all EU institutions, thus allowing users to download data and visualize the Pillar 3 information in a standardised format.

The European Banking Authority (EBA) launched today a consultation on the Pillar 3 data hub, which will centralise prudential disclosures by institutions through a single electronic access point on the EBA website. This project is part of the Banking Package laid down in the Capital Requirements Regulation (CRR3) and Capital Requirements Directive (CRD6). This consultation runs until 11 November.

The draft Implementing Technical Standards (ITS) present the IT solutions and processes to be followed by large and other institutions when submitting their respective Pillar 3 disclosures. This includes the IT solutions to be used, the data exchange formats to be considered, the technical validations to be performed by the EBA.

The EBA welcomes feedback both from institutions and users of Pillar 3 information.

The current proposals in the consultation paper consider the feedback received from the industry on the discussion paper published in December 2023. The summary of this feedback and respective EBA analysis is included in the consultation paper.

In parallel, the EBA continues to run a pilot exercise with voluntary institutions to test the process for large and other institutions. Conclusions from the pilot exercise, together with the feedback received during this consultation, will be taken into account when finalising the draft ITS to be submitted to the European Commission for adoption.

Consultation process

Comments to this consultation paper can be sent to the EBA by clicking on the “send your comments” button on the consultation page. Please note that the deadline for the submission of comments is 11 November 2024. All contributions received will be published following the end of the consultation, unless requested otherwise.

A public hearing will be organised in the form of a webinar on 21 October from 15:00 to 16:30 CET. Please register for the hearing here by 17 October 13:00 CET.

Legal basis, backgrounds d next steps

The new Banking Package (CRR3/CRD6), which will implement the latest Basel III reforms in the EU, includes a mandate to the EBA to develop a Pillar 3 data hub. The EBA’s plan on how to implement the mandates included in the banking package is explained in the ‘EBA Roadmap on strengthening the prudential framework’, published in December 2023.

The CRR3 (Articles 434 and 434a) mandates the EBA to publish on its website all the prudential disclosures for all institutions subject to these disclosure requirements, making it readily available in a centralised manner to all the relevant stakeholders through a single electronic access point on its website. To comply with this mandate the EBA is building a data hub putting together all the disclosures required under Part Eight of the CRR.

The CRD6 (Article 106) mandates the EBA to issue guidelines, in accordance with Article 16 of Regulation (EU) No 1093/2010, to specify the requirements set out in paragraph 1 under which Competent Authorities are empowered to require disclosures more frequently than required under CRR3, set deadlines to institutions to submit the information to EBA and require institutions to use specific media and locations for publication, other than the EBA website for centralised disclosures.

The draft ITS for small and non-complex institutions and on the resubmission policy will be consulted separately, at a later stage.