On The Regs: Q2 Update

We recap the regulatory developments in Q2 and highlight what to expect next quarter.

What Happened?

It was a busy three months in the world of financial regulation. In Europe, policymakers finalized the rules for PRIIPs and reached an agreement on Money Market Fund Reform. As Brexit takes shape, ESMA set some ground rules for the regulation of UK companies moving to the EU. Across the Atlantic, President Trump initiated a review of the US regulatory framework, while the controversial DoL Fiduciary Rule was briefly delayed and then went live on 9 June. Meanwhile, the explosive growth of ETFs has attracted the attention of policymakers, raising the probability of an ETF regulatory framework.

What We’re Watching…

This month, the next phase in the EU’s Securities Financing Transactions Regulation comes into effect. In August, the first phase of the SEC’s Reporting Modernization Rules takes effect when the S-X rules go live. Finally, in September the US securities settlement cycle will move from T+3 (trade date plus three days), to T+2 (trade date plus two days)  bringing the US in line with most global markets.

Beyond these milestones, we are keeping our eye on the impact assessments of the US regulatory framework requested by President Trump, the SEC and DoL’s ongoing review of the Fiduciary Rule, IOSCO’s consultation on ETF regulation, and of course, ESMA’s final guidance on MiFID 2.

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