Financial Regulatory Developments Focus – October 2015

In this week’s newsletter, we provide a snapshot of the principal US, European and global financial regulatory developments of interest to banks, investment firms, broker-dealers, market infrastructure providers, asset managers and corporates.

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Financial Regulatory Developments Focus

In this week’s newsletter, we provide a snapshot of the principal US, European and
global financial regulatory developments of interest to banks, investment firms,
broker-dealers, market infrastructure providers, asset managers and corporates.
In this Issue (please click on any title to go directly to the corresponding discussion):
Bank Prudential Regulation & Regulatory Capital ……………………………………………………………………………………………………….. 2
US Board of Governors of the Federal Reserve System Announces Approval of Applications by M&T Bank Corporation to Acquire
Hudson City Bancorp, Inc. ………………………………………………………………………………………………………………………………………………………………2
European Banking Authority Publishes Report Analyzing Asset Encumbrance for EU banks …………………………………………………………………..2
European Commission Publishes Proposed Legislative Package to Revive EU Securitization Markets …………………………………………………….2
Basel Committee on Banking Supervision Issues Report on Regulatory Consistency of Risk-weighted Assets for Counterparty Credit
Risk ……………………………………………………………………………………………………………………………………………………………………………………………..3
Bank of England Announces Publication Date for Results of 2015 Stress Test ………………………………………………………………………………………3
UK Regulator Publishes Supervisory Statement on Reports Provided by Skilled Persons ………………………………………………………………………3
Consumer Protection …………………………………………………………………………………………………………………………………………………. 4
US Consumer Financial Protection Bureau Sends Industry Letter on Know Before You Owe Mortgage Disclosure Rule Compliance…………..4
Credit Ratings ……………………………………………………………………………………………………………………………………………………………. 4
European Securities and Markets Authority Reports on Aspects of EU Regulation of Credit Rating Agencies ……………………………………………4
Cyber Security …………………………………………………………………………………………………………………………………………………………… 4
US Office of the Comptroller of the Currency Highlights National Cybersecurity Awareness Month ………………………………………………………….4
Derivatives ………………………………………………………………………………………………………………………………………………………………… 5
US Commodity Futures Trading Commission’s Division of Market Oversight Issues Additional Time-Limited No-Action Relief from
Electronic Reporting Requirements in the OCR Final Rule ………………………………………………………………………………………………………………….5
European Securities and Markets Authority Writes to European Commission on Technical Standards for Indirect Clearing ………………………..5
Enforcement ………………………………………………………………………………………………………………………………………………………………. 5
US Commodity Futures Trading Commission Orders Deutsche Bank AG to Pay a $2.5 Million Civil Monetary Penalty for Swaps
Reporting Violations ……………………………………………………………………………………………………………………………………………………………………….5
Financial Market Infrastructure …………………………………………………………………………………………………………………………………… 6
Financial Stability Board Releases Progress Report on FX Benchmark Reforms …………………………………………………………………………………..6
Financial Services ……………………………………………………………………………………………………………………………………………………… 6
European Commission Publishes Guide on Crowdfunding for Small and Medium Enterprises…………………………………………………………………6
European Commission Publishes Action Plan for Capital Markets Union ………………………………………………………………………………………………6
Funds ………………………………………………………………………………………………………………………………………………………………………… 7
European Commission Consults on a Review of EU Venture Capital Investment Funds …………………………………………………………………………7
Recovery & Resolution ………………………………………………………………………………………………………………………………………………. 7
President of the US Federal Reserve Bank of New York Delivers Speech on Regulation and Liquidity Provision ………………………………………7
Securities ………………………………………………………………………………………………………………………………………………………………….. 7
European Commission Consults on EU Covered Bond Framework ……………………………………………………………………………………………………..7
European Securities and Markets Authority Publishes Final Guidelines on Alternative Performance Measures …………………………………………8
People ……………………………………………………………………………………………………………………………………………………………………….. 8
Securities and Exchange Commission Appoints Associate Director in the Division of Economic and Risk Analysis ……………………………………8
European Stability Mechanism Announces New Management Board Member ………………………………………………………………………………………8
Upcoming Events ………………………………………………………………………………………………………………………………………………………. 8
Upcoming Consultation Deadlines ……………………………………………………………………………………………………………………………… 9

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Bank Prudential Regulation & Regulatory Capital
US Board of Governors of the Federal Reserve System Announces Approval of Applications by M&T Bank Corporation to Acquire
Hudson City Bancorp, Inc.
On September 30, 2015, the US Board of Governors of the Federal Reserve System announced its approval of the
applications by: (i) M&T Bank Corporation to acquire Hudson City Bancorp, Inc.; and (ii) by M&T’s subsidiary bank,
Manufacturers and Traders Trust Company, to merge with Hudson City Savings Bank. Upon consummation of the
transactions, M&T will have consolidated assets of approximately $132.5 billion, making it the 25th largest insured
depository organization in the United States (currently it is 31st). M&T agreed to purchase Hudson City and submitted
applications to the Federal Reserve Board in respect of the transaction in 2012. However, the Federal Reserve Board
initially identified weaknesses in M&T’s risk management program, including issues in M&T’s Bank Secrecy Act/anti-
money laundering compliance management program and its consumer compliance program and thus postponed
consideration of the deal at M&T’s request until M&T was able to remediate these concerns.
The Federal Reserve Board press release and order are available at:
http://www.federalreserve.gov/newsevents/press/orders/20150930a.htm.
The Federal Reserve Board order is available at:
http://www.federalreserve.gov/newsevents/press/orders/orders20150930a1.pdf.
European Banking Authority Publishes Report Analyzing Asset Encumbrance for EU banks
On September 30, 2015, the European Banking Authority published its first analysis on asset encumbrance for EU
banks, using data received from the 200 banks that provide it with such data. This first analysis initiates the regular
monitoring of levels of asset encumbrance at EU level and future reports will be published annually. The analysis aims
to assist supervisors in assessing how banks manage funding stress as well as the impact that switching from unsecured
to secured funding might have on banks in conditions of stress. The report is based on data received for December 2014
and March 2015 further to a requirement under the Capital Requirements Regulation for banks to report levels of
repurchase agreements, securities lending and all forms of asset encumbrance to national regulators. The analysis shows
that the overall weighted average encumbrance ratio was 27% in March 2015, with ratios at country level that range
from 0% for Estonia and 44% in Denmark and Greece. The report shows there has been no increase in levels of asset
encumbrance over the past four years, based on a comparison with a similar report released by the European Systemic
Risk Board in 2011.
The report is available at: http://www.eba.europa.eu/documents/10180/974844/EBA+Report+on+Asset+Encumbrance-
+September+2015.pdf.
European Commission Publishes Proposed Legislative Package to Revive EU Securitization Markets
On September 30, 2015, the European Commission published two proposed Regulations as part of its Capital Markets
Union initiative which aim to revive the EU securitization markets. The proposed Regulation on common rules on
securitization and creating a European framework for simple, transparent and standardized securitization (referred to as
STS Securitization) sets out the eligibility criteria for STS securitizations such as risk retention rules, due diligence and
disclosure requirements. The proposed Regulation also includes requirements for supervisory requirements,
amendments to other EU legislation to ensure consistency, an exemption, subject to certain criteria being met, from the
clearing obligation for OTC derivative contracts entered into by covered bond entities and securitization special purpose
entities and rules on third country securitizations. The second proposed Regulation would amend the CRR to revise
capital requirements for banks and investment firms originating, sponsoring or investing in securitizations. The
objective of the proposals is to align the CRR provisions with the revised Basel framework of 2014 as was
recommended by the EBA in its report on qualifying securitizations in July. The proposed revisions to the CRR seek to
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adopt a more risk-sensitive approach to STS Securitization which is currently in the early stages of development at
international level. Both legislative proposals are subject to the European legislative process.
The proposed STS Securitization Regulation is available at:
http://ec.europa.eu/finance/securities/docs/securitisation/com-2015-472_en.pdf.
Basel Committee on Banking Supervision Issues Report on Regulatory Consistency of Risk-weighted Assets for Counterparty Credit
Risk
On October 1, 2015, the Basel Committee on Banking Supervision published a report relating to the regulatory
consistency of Risk-Weighted Assets for counterparty credit risk. This report is part of the BCBS’s wider Regulatory
Consistency Assessment Program, which is intended to ensure consistent implementation of the Basel III framework.
The report examines variability in banks’ modeling of derivatives, specifically exposure modeling, by presenting
findings from a hypothetical test portfolio exercise. The report concentrates on the internal models method and the
advanced credit valuation adjustments risk capital charge for OTC derivative trades. This report completes the BCBS’s
review, in respect of trading-related internal models, and follows two earlier exercises that focused on market risk
RWAs that were published in January 2013 and December 2013. In the report, the BCBS presents key findings, lists a
number of observed good practices, and highlights areas where banks and supervisors may seek to harmonize practices
to reduce variability in outcomes.
The report is available at: http://www.bis.org/bcbs/publ/d337.pdf.
Bank of England Announces Publication Date for Results of 2015 Stress Test
On September 28, 2015, the Bank of England announced the timetable for publication of the results of the 2015 UK
stress test, which aims to evaluate the resilience of the UK banking system. The stress test covers seven major UK banks
and building societies, namely Barclays, HSBC, Lloyds Banking Group, Nationwide, Royal Bank of Scotland,
Santander UK, and Standard Chartered. The Financial Policy Committee and Board of the Prudential Regulation
Authority will make their final decisions on the results of the stress tests on November 30, 2015 and will revert to the
relevant firms on the same day. The results will then be published on December 1, 2015.
The press release is available at: http://www.bankofengland.co.uk/publications/Documents/news/2015/072.pdf.
UK Regulator Publishes Supervisory Statement on Reports Provided by Skilled Persons
On September 30, 2015, the PRA published an updated Supervisory Statement on reports provided by skilled persons
under the Financial Services and Markets Act 2000. Under FSMA, the PRA may appoint, or may require a firm or a
certain individual to appoint a skilled person to provide the PRA with a report giving an independent view of a firm’s
activity. This is part of the PRA’s supervisory approach to firms, to identify, assess or prevent risks, track the
development of previously identified risks or to use as part of possible remedial measures. The Supervisory Statement is
to be read alongside the Use of Skilled Persons Part of the PRA Rulebook, which specifies the rules on contracts entered
into with skilled persons. The updated Supervisory Statement provides greater clarity on the use of a skilled person as
part of the PRA’s supervisory approach and in particular as a discretionary supervisory tool. The Supervisory Statement
includes: (i) the PRA’s considerations when appointing a skilled person; (ii) the PRA’s considerations when
determining whether it should use its powers under FSMA to obtain a report by a skilled person or to appoint a skilled
person to collect or update information; and (iii) the PRA’s expectations of an appointed skilled person.
The Supervisory Statement is available at:
http://www.bankofengland.co.uk/pra/Documents/publications/ss/2015/ss714update.pdf.
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Consumer Protection
US Consumer Financial Protection Bureau Sends Industry Letter on Know Before You Owe Mortgage Disclosure Rule Compliance
On October 2, 2015, the US Consumer Financial Protection Bureau sent a letter to mortgage industry trade groups
specifying details regarding initial examinations for compliance with the Know Before You Owe mortgage disclosure
rule (also known as the TILA-RESPA Integrated Disclosure regulation). The rule, which became effective October 3,
2015, requires institutions supervised by the CFPB to introduce more simplified mortgage disclosure forms. The CFPB
intends to conduct initial examinations for compliance with the rule. Although the initial examinations will take into
account the scale and scope of modifications necessary for each supervised institution, the CFPB letter re-stated the
expectation that supervised institutions should make a good faith effort to comply with the rule. To that end, the letter
detailed the various factors that CFPB examiners will take into consideration, which include: (i) the institution’s
implementation plan, including actions taken to update policies, procedures and processes; (ii) its training of appropriate
staff; and (iii) its handling of early technical problems.
The press release is available at: http://www.consumerfinance.gov/newsroom/cfpb-sends-industry-letter-on-know-
before-you-owe-mortgage-disclosure-rule-compliance/.
Credit Ratings
European Securities and Markets Authority Reports on Aspects of EU Regulation of Credit Rating Agencies
On October 2, 2015, the European Securities and Markets Authority published a final report on the possibility of
establishing mappings of credit ratings published on the European Rating Platform (a public website to be launched by
ESMA in 2016 which will allow comparability of all ratings given by rating agencies registered and authorized in the
EU), as required under the amended Credit Rating Agencies Regulation. The aim of credit rating mapping would be to
assist users of credit ratings in comparing ratings given by different credit agencies for the same entities. ESMA
recommends that the European Commission not take any action at this point in terms of mapping and that ESMA should
instead focus on constantly updating its information and data which allows users of credit ratings to carry out their own
research. ESMA also published two sets of technical advice to the Commission. The first advice is on reducing sole and
mechanistic reliance on external credit ratings which considers the measures in place to date to reduce reliance on credit
ratings and recommends that efforts should focus on removing reliance on credit ratings instead of trying to remove
references to credit ratings in all EU legislation. The second advice is on competition, choice and conflicts of interest in
the credit rating industry which considers the impact of certain provisions of the CRA Regulation on competition,
conflicts of interest and structured finance instruments which were introduced in 2013. The Commission must report to
the European Parliament and Council by December 31, 2016 on whether references to credit ratings in EU legislation
should be removed when the latest provisions of CRA are implemented. ESMA proposes to reassess the implementation
of the CRA Regulation within the next three to five years.
The report and technical advice are available at: http://www.esma.europa.eu/news/ESMA-sees-progress-reform-EU-
credit-rating-industry?t=326&o=home.
Cyber Security
US Office of the Comptroller of the Currency Highlights National Cybersecurity Awareness Month
On October 1, 2015, the Comptroller of the Currency, Thomas J. Curry, issued a statement recognizing October as
National Cybersecurity Awareness Month, as designated by President Obama. Mr. Curry stated that the goal of the
month is to “raise awareness of threats to the data systems that have become part of our everyday lives and to encourage
each of us to take steps to safeguard those systems.” Mr. Curry’s statement noted the increasing prevalence of
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cybersecurity breaches and encouraged banks/thrifts and supervisory agencies to work together to prevent breaches and
to ensure that institutions have a plan in place to effectively detect, assess, and respond to cyber-attacks.
The press statement is available at: http://www.occ.gov/news-issuances/news-releases/2015/nr-occ-2015-133.html.
Derivatives
US Commodity Futures Trading Commission’s Division of Market Oversight Issues Additional Time-Limited No-Action Relief from
Electronic Reporting Requirements in the OCR Final Rule
On September 28, 2015, the US Commodity Futures Trading Commission’s Division of Market Oversight issued a no-
action letter, CFTC Letter No. 15-52, that provides additional time for reporting parties to comply with certain reporting
requirements of the ownership and control final rule (OCR Final Rule). The OCR Final Rule introduces to the CFTC’s
transaction and reporting program certain new and updated forms for reporting trader identification and market
participant data. CFTC Letter No. 15-52 supersedes previous no-action relief issued in February 2015, and extends
relief until April 2016, September 2016, or February 2017, depending on the type of reporting requirement.
The press release is available at: http://www.cftc.gov/PressRoom/PressReleases/pr7248-15.
CFTC Letter No. 15-52 is available at: http://www.cftc.gov/idc/groups/public/@lrlettergeneral/documents/letter/15-
52.pdf.
European Securities and Markets Authority Writes to European Commission on Technical Standards for Indirect Clearing
On October 2, 2015, ESMA sent a letter to Jonathan Hill, Commissioner for Financial Stability, Financial Services and
CMU at the European Commission on the Regulatory Technical Standards for indirect clearing for OTC derivatives
under the European Market Infrastructure Regulation and the draft RTS on exchange-traded derivatives under the
Markets in Financial Instruments Regulation. Both the final RTS under EMIR and the draft RTS under MiFIR aim to
specify the types of indirect contractual arrangements that do not increase counterparty risk. Under MiFIR, the draft
RTS on indirect clearing must be consistent with the RTS under EMIR. ESMA considers that the RTS under EMIR
need to be revised to take into account the feedback received on the proposed draft RTS under MiFIR. ESMA therefore
intends to consult on the possible changes to the EMIR RTS to align them with the draft MiFIR RTS. ESMA will
submit the draft MiFIR RTS and draft amended EMIR RTS to the Commission together, following its consultation.
The letter is available at: http://www.esma.europa.eu/news/ESMA-informs-European-Commission-delay-submitting-
RTS-indirect-clearing-under-MiFIR?t=326&o=home.
Enforcement
US Commodity Futures Trading Commission Orders Deutsche Bank AG to Pay a $2.5 Million Civil Monetary Penalty for Swaps
Reporting Violations
On September 30, 2015, the US CFTC issued its first action enforcing new requirements issued pursuant to Dodd-Frank
that provide for real-time public reporting of swap transactions and the reporting of swap data to swap data repositories,
against Deutsche Bank. The Order finds that Deutsche Bank, a provisionally registered Swap Dealer, failed to properly
report its swaps transactions and did not have a satisfactory supervisory system governing its swaps reporting
requirements. Deutsche Bank is required to pay a $2.5 million civil monetary penalty in addition to complying with
certain steps to improve its internal controls related to the accuracy of its swaps reporting.
The CFTC press release is available at: http://www.cftc.gov/PressRoom/PressReleases/pr7255-15.
The CFTC Order is available at:
http://www.cftc.gov/idc/groups/public/@lrenforcementactions/documents/legalpleading/enfdeutscheorder093015.pdf.
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Financial Market Infrastructure
Financial Stability Board Releases Progress Report on FX Benchmark Reforms
On October 1, 2015, the Financial Stability Board published a report detailing its progress in implementing its
September 2014 recommendations for reforms to Foreign Exchange benchmarks. Although the report states that
progress has been made in implementing many of the recommendations, the FSB notes that there are still areas where
progress has been mixed. Specifically, among other things, the report reiterates that the FSB recommendations are
intended to apply to all FX benchmarks, not just the London 4pm fix benchmark. The FSB asserts that a more complete
implementation of the recommendations, particularly regarding other FX benchmarks, is essential to building upon
improvements already witnessed.
The report is available at: http://www.financialstabilityboard.org/wp-content/uploads/r_140930.pdf.
Financial Services
European Commission Publishes Guide on Crowdfunding for Small and Medium Enterprises
On September 29, 2015, the European Commission published a guide for small and medium enterprises on how to use
crowdfunding. The guide describes the different types of crowdfunding available, such as peer-to-peer lending as well
as equity, revenue-sharing, and debt-securities crowdfunding and includes details on how to plan and prepare for
crowdfunding.
The guide is available at:
http://ec.europa.eu/DocsRoom/documents/10229/attachments/1/translations/en/renditions/native.
European Commission Publishes Action Plan for Capital Markets Union
On September 30, 2015, the European Commission published its Action Plan for building the CMU. The Action Plan
follows the Commission’s announcement and consultation in February 2015. The Action Plan sets out the steps for the
medium and long term that the Commission intends to take in five priority areas, which are: (i) providing more funding
choices to EU businesses; (ii) ensuring an appropriate regulatory framework for long term investment and financing of
Europe’s infrastructure; (iii) increasing investment and choices for retail and institutional investors; (iv) improving bank
lending capacity; and (v) removing cross-border barriers and developing more harmonized capital markets for all
Member States. The Action Plan includes a detailed action list and indicative timeline of steps that the Commission
intends to take, including publishing proposals to amend the Prospectus Directive before the end of 2015. Several
proposals and consultations were published with the Action Plan, including (i) a call for evidence on the impact of the
EU regulatory framework for financial services which seeks feedback on rules affecting the ability of the economy to
finance itself and growth, unnecessary regulatory burdens, inconsistencies, gaps and unintended consequences; and (ii)
a proposed Commission Delegated Regulation amending the regulatory capital requirements for several categories of
assets held by insurance and reinsurance undertakings.
The other publications are detailed further on this website: http://finreg.shearman.com.
The Action Plan is available at: http://ec.europa.eu/finance/capital-markets-union/docs/building-cmu-action-plan_en.pdf.
The Call for Evidence is available at: http://ec.europa.eu/finance/consultations/2015/financial-regulatory-framework-
review/docs/consultation-document_en.pdf.
The proposed Commission Delegated Regulation is available at:
http://ec.europa.eu/finance/insurance/docs/solvency/solvency2/amendment/20150930-amendment-to-the-delegated-
act_en.pdf.
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Funds
European Commission Consults on a Review of EU Venture Capital Investment Funds
On September 30, 2015, the European Commission launched a consultation into the review of the European Venture
Capital Funds Regulation and the European Social Entrepreneurships Funds Regulation as part of its CMU initiative.
The Commission is seeking views on steps that could be taken to improve the take-up of EuVECA and EuSEF funds
through amendments to the two Regulations. Proposals include: (i) allowing managers authorized under the Alternative
Investment Fund Managers Directive to be able to offer EuVECA and EuSEF funds to clients; (ii) exempting managers
of EuVECA and EuSEF funds from authorization under AIFMD once they exceed the €500 million threshold; (iii)
reducing the minimum subscription threshold for non-professional investors to attract more private investors; (iv)
harmonization of registration requirements, including related costs; (v) extending the EuVECA and EuSEF Regulations
to third country managers; (vi) extending the range of eligible assets that a EuVECA fund can invest in; and (vii)
harmonizing requirements for the marketing of funds and fees for cross-border notifications. The consultation closes on
January 6, 2016.
The consultation paper is available at: http://ec.europa.eu/finance/consultations/2015/venture-capital-
funds/docs/consultation-document_en.pdf.
Recovery & Resolution
President of the US Federal Reserve Bank of New York Delivers Speech on Regulation and Liquidity Provision
On September 30, 2015, William C. Dudley, President and Chief Executive Officer of the US Federal Reserve Bank of
New York, delivered a speech at the SIFMA Liquidity Forum reiterating the need to strike a proper balance between
sound regulation and liquidity in financial markets. Specifically, his remarks examined market liquidity in two
important fixed-income markets: the US Treasury market and the US corporate bond market. He discussed, among other
things, methods on how to measure liquidity, evidence of how liquidity has changed in recent years, factors that could
influence liquidity provision, and costs associated with shifts in liquidity. Dudley expressed his support for the
recommendations in the recently issued interagency report on the October 15, 2014 Treasury market flash rally,
including the need to better understand the implications of the evolving Treasury market structure and liquidity and how
changes in regulation and market structure influence liquidity conditions more generally. Specifically, he called for
study and data analysis as to whether there is a decrease in liquidity and/or an increase in liquidity risk that is costly or
poses a risk to financial stability and whether regulation can be altered to improve the balance between enhancing
financial stability and the costs of such regulation, including adverse impacts on liquidity.
The speech is available at: http://www.newyorkfed.org/newsevents/speeches/2015/dud150930.html.
Securities
European Commission Consults on EU Covered Bond Framework
On September 30, 2015, the European Commission launched a consultation on proposed action to address the legal and
practical issues in the EU covered bond market to facilitate cross-border investment within the EU and from third
countries. The consultation forms part of the Commission’s CMU initiative. The regulation of covered bonds is a matter
of Member State national laws although the prudential treatment of covered bonds is provided for in a variety of EU
legislative acts such as the Units for Collective Investment in Transferable Securities Directive, the CRR and the Bank
Recovery and Resolution Directive. There are differences between the legal frameworks and supervisory practices of
various EU Member States for covered bonds as highlighted by the EBA in its July 2014 report. The Commission is
proposing a more integrated EU-wide covered bond framework that could be reflected in legislation and/or a set of
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recommendations and the consultation paper includes a discussion of the various approaches that might be taken in an
effort to introduce harmonization across the EU. The consultation closes on January 6, 2016.
The EU Covered Bond consultation paper is available at: http://ec.europa.eu/finance/consultations/2015/covered-
bonds/docs/consultation-document_en.pdf.
European Securities and Markets Authority Publishes Final Guidelines on Alternative Performance Measures
On October 5, 2015, ESMA published its final Guidelines on Alternative Performance Measures for listed issuers. An
APM is a financial measure of historical or future financial performance, position or cash flow and is usually derived
from financial statements prepared by an issuer. The Guidelines aim to assist users in making investment decisions and
encourage European issuers to publish comparable, transparent and reliable information on their financial performance
so that users can obtain a comprehensive understanding of their performance. The Guidelines apply to issuers with
securities traded on regulated markets that are required to publish regulated information under the EU Transparency
Directive, any persons responsible for drawing up a prospectus under the EU Prospectus Directive and relevant EU
national regulators. The Guidelines will apply to APMs disclosed on or after July 3, 2016.
The Guidelines are available at: http://www.esma.europa.eu/news/ESMA-publishes-final-guidelines-Alternative-
Performance-Measures?t=326&o=home.
People
Securities and Exchange Commission Appoints Associate Director in the Division of Economic and Risk Analysis
On October 2, 2015, the US Securities and Exchange Commission announced that Chyhe Becker has been named the
Associate Director in the Division of Economic and Risk Analysis, responsible for the Office of Litigation Economics.
The appointment is effective immediately.
The press release is available at: http://www.sec.gov/news/pressrelease/2015-228.html.
European Stability Mechanism Announces New Management Board Member
On October 1, 2015, the European Stability Mechanism announced that Françoise Blondeel has been promoted to its
Management Board. Ms. Blondeel was previously Head of Middle and Back Office at the ESM and will now also be in
charge of the ESM’s internal coordination.
The press release is available at: http://www.esm.europa.eu/press/releases/esm-appoints-fran%C3%A7oise-blondeel-to-
management-board.
Upcoming Events
October 12, 13, 19, 20 and 21, 2015: Financial Conduct Authority workshop for Credit Unions: Senior Managers and
Certification Regimes Improving Individual Accountability.
October 7, 2015: EBA Public Hearing on proposed guidelines on cooperation agreements between deposit guarantee
schemes (registration closed).
October 12, 2015: EBA Public Hearing on credit valuation adjustment exemption of non-financial counterparties
established in a third country (registration closed).
October 15, 2015: EBA Public Hearing on the report on the calibration of a stable funding requirement under the CRR
(registration closed).
October 19, 2015: FCA MiFID II Wholesale Firms conference.
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November 3, 4, 5, 9 and 11, 2015: FCA workshop for Credit Unions: Senior Managers and Certification Regimes
Improving Individual Accountability.
November 4, 2015: European Central Bank Forum on Banking Supervision (registration by invitation only).
November 11, 2015: BoE Open Forum.
November 13, 2015: EBA public hearing on the harmonized definition of default under the CRR.
November 18 and 19, 2015: EBA Fourth Annual Research Workshop: Financial regulation and the real economy: a
micro prudential perspective.
Upcoming Consultation Deadlines
October 9, 2015: Committee on Payments and Market Infrastructures and International Organization of Securities
Commissions Consultation on Harmonization of Key OTC Derivatives Data Elements.
October 19, 2015: Federal Reserve Board Proposed Revisions to Systemic Risk Reporting by Large Bank Holding
Companies.
October 30, 2015: PRA and FCA Consultations on implementation of ring-fencing transfer schemes.
October 31, 2015: ESMA Consultation on draft Implementing Technical Standards under MiFID II and MiFIR.
November 9, 2015: FCA Consultation on Part I of Implementation of UCITS V Directive.
December 7, 2015: FCA Consultation on Part III of Implementation of UCITS V Directive.
December 24, 2015: ESMA consultation on RTS for the European Single Electronic Format under the Transparency
Directive.
January 6, 2015: European Commission Consultation on EU Covered Bond Framework.
January 6, 2015: European Commission Consultation on EU Venture Capital Investment Funds Regulation and
European Social Entrepreneurships Funds Regulation.
January 22, 2016: EBA Consultation on draft guidelines on application of definition of default under the CRR.

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This newsletter is intended only as a general discussion of these issues. It should not be regarded as legal advice. We would be pleased
to provide additional details or advice about specific situations if desired. If you wish to receive more information on the topics covered in
this publication, you may contact your usual Shearman & Sterling representative or any of the following:
Contacts

BARNEY REYNOLDS
T: +44 20 7655 5528
barney.reynolds@shearman.com
London

REENA AGRAWAL SAHNI
T: +1 212 848 7324
reena.sahni@shearman.com
New York

RUSSELL D. SACKS
T: +1 212 848 7585
rsacks@shearman.com
New York

THOMAS DONEGAN
T: +44 20 7655 5566
thomas.donegan@shearman.com
London

DONNA M. PARISI
T: +1 212 848 7367
dparisi@shearman.com
New York

NATHAN J. GREENE
T: +1 212 848 4668
ngreene@shearman.com
New York

GEOFFREY B. GOLDMAN
T: +1 212 848 4867
geoffrey.goldman@shearman.com
New York

JOHN ADAMS
T: +44 20 7655 5740
john.adams@shearman.com
London
AZAD ALI
T: +44 20 7655 5659
azad.ali@shearman.com
London
CHRISTINA BROCH
T: +1 202 508 8028
christina.broch@shearman.com
Washington, DC
MARTYNA BUDZYNSKA
T: +44 20 7655 5816
martyna.budzynska@shearman.com
London
TIMOTHY J. BYRNE
T: +1 212 848 7476
tim.byrne@shearman.com
New York
JAMES CAMPBELL
T: +44 20 7655 5570
james.campbell@shearman.com
London
AYSURIA CHANG
T: +44 20 7655 5792
aysuria.chang@shearman.com
London
TOBIA CROFF
T: +39 02 0064 1509
tobia.croff@shearman.com
Milan
ANNA DOYLE
T: +44 20 7655 5978
anna.doyle@shearman.com
London
SYLVIA FAVRETTO
T: +1 202 508 8176
sylvia.favretto@shearman.com
Washington, DC
MAK JUDGE
T: +65 6230 8901
mak.judge@shearman.com
Singapore
DONALD N. LAMSON
T: +1 202 508 8130
donald.lamson@shearman.com
Washington, DC
HERVÉ LETRÉGUILLY
T: +33 1 53 89 71 30
hletreguilly@shearman.com
Paris
OLIVER LINCH
T: +44 20 7655 5715
oliver.linch@shearman.com
London
BEN MCMURDO
T: +44 207 655 5906
ben.mcmurdo@shearman.com
London
JENNIFER D. MORTON
T: +1 212 848 5187
jennifer.morton@shearman.com
New York
BILL MURDIE
T: +44 20 7655 5149
bill.murdie@shearman.com
London
BRADLEY K. SABEL
T: +1 212 848 8410
bsabel@shearman.com
New York
JENNIFER SCOTT
T: +1 212 848 4573
jennifer.scott@shearman.com
New York
KOLJA STEHL
T: +49 69 9711 1623
kolja.stehl@shearman.com
Frankfurt / London
ELLERINA TEO
T: +44 20 7655 5070
ellerina.teo@shearman.com
London

ABU DHABI | BEIJING | BRUSSELS | DUBAI | FRANKFURT | HONG KONG | LONDON | MENLO PARK | MILAN | NEW YORK
PARIS | ROME | SAN FRANCISCO | SÃO PAULO | SAUDI ARABIA* | SHANGHAI | SINGAPORE | TOKYO | TORONTO | WASHINGTON, DC

This memorandum is intended only as a general discussion of these issues. It should not be regarded as legal advice. We would be pleased to provide additional details or advice about specific
situations if desired.
599 LEXINGTON AVENUE | NEW YORK | NY | 10022-6069
Copyright © 2015 Shearman & Sterling LLP. Shearman & Sterling LLP is a limited liability partnership organized under the laws of the State of Delaware, with an affiliated limited liability
partnership organized for the practice of law in the United Kingdom and Italy and an affiliated partnership organized for the practice of law in Hong Kong.
*Abdulaziz Alassaf & Partners in association with Shearman & Sterling LLP

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