In the current context of financial markets turmoil related to the spread of COVID-19 pandemic, the AMF outlined the need for market participants to maintain the good continuity of market activities while a high degree of market integrity and published on 2 April a reminder to the financial industry of the various requirements arising from the European regulation.
Ahead of French government quarantine measures, the AMF reminds market operators that they are not prohibited from working from home but draws their attention to the prerequisites as regards notably conflict of interest (with other persons present when homeworking) and possible latency risks which may incur difficulties with the monitoring of real‑time trading.
As regards market integrity and transparency, the AMF reminds market participants that:
- they must take the appropriate steps to ensure audit trail and voice-recording requirements are complied with in a deteriorated operational environment brought about by the geographical separation of staff (see ESMA position of 20 March on call taping under MIFID 2);
- they must ensure that the transmission of EMIR and MIFID II transaction reporting remains “steady, of good quality and is carried out within the regulatory timelines“. In case of difficulties with report transmission, participants shall submit missing data swiftly or contact the AMF and inform on the date on which a return to normal can be expected;
- they remain subject to their ongoing disclosure and alerts obligations under the European Market Abuse Regulation (MAR) and all relevant information shall be disclosed to the market as soon as possible. However, issuers must exercise discretion in dealing with alerts and suspicious transaction reports (STRs which shall be sent within a reasonable timeframe given the context) and investigate only alerts that are not related solely to market conditions.
Moreover, ESMA published a press release on 19 March in which it expects competent authorities not to prioritise their supervisory actions towards entities subject to Securities Finance Transactions (SFT) reporting obligations as of 13 April 2020 and until 13 July 2020. As a result, and in accordance with ESMA’s position, the AMF has stressed that it will take into account the postponement of the entry into application of such SFTR reporting requirements for credit institutions and investment providers in its supervisory activities.
Finally and more generally, the due submission of questionnaires and reports to be submitted to market authorities can be deferred or postponed:
- markets participants will have notably until 30 June 2020 to issue “RTS 27” and “RTS 28” best execution reports (instead of respectively 31 March and 30 April) in accordance with ESMA communication;
- as regards RCSI annual questionnaire, the entities that wish to start filling in such questionnaire may do so since 20 March. However and in view of the current situation, the deadline for submission, usually fixed on 30 April, shall be postponed until 30 June; and
- the annual report on client asset protection for custody account keepers is due to be submitted on 30 September 2020 instead of 30 June 2020.
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