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Derivatives and Structured Products Horizon Scanning 2020

With 2020 now upon us, we examine the key topics we expect to have an impact on derivatives and structured products over the coming year. Explore the tabs below to see our high level guides on what to look out for across interest rate reform, EMIR, SFTR, the Prospectus Regulation, PRIIPs, Sustainable Finance, CSDR, and Brexit.

EMIR

2020 will see the phase-in of initial margin for a reduced Phase 5 in September and the introduction of mandatory reporting for certain counterparties from 18 June. EMIR 2.2 is now in force, with delegated regulation to follow, and draft changes to the margin rules for uncleared derivatives are also expected to come into force.

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SFTR

Following a lengthy delay in finalising the SFTR regulatory and implementing technical standards, phase-in of the reporting obligation for securities financing transactions will commence from April 2020.

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Prospectus Regulation

With the Prospectus Regulation having applied in full since July last year, many structured products issuers will encounter the new regime for the first time on their 2020 programme updates. Risk factors, retail summaries and disclosure requirements in respect of certain underlying obligors are among the areas that will need to be revisited.

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