In response to the public statements by ESMA and the FCA on 29 May outlining their approach to the trading obligation for shares in a no-deal Brexit scenario, Simon Lewis, Chief Executive of AFME, said: “AFME welcomes the statements issued by ESMA and the FCA today in relation to the application of the Share Trading Obligation in the event of a no-deal Brexit.” “We are pleased that ESMA has responded to industry concerns and we note that the 14 major UK stocks, which were originally included within previous guidance, will no longer be in scope. This means that EU banks and investors will continue to be able to access these stocks in the UK and trading can continue uninterrupted in the event of a no-deal Brexit.” “However, we remain concerned that, in the absence of reciprocal equivalence, EU investors may still not be able to access the major pools of liquidity of a substantial number of EU27 shares and therefore may not be able to execute trades at the best available prices.” “AFME therefore urges EU27 and UK authorities to continue to work together to address this important issue”. -ENDS-

On the occasion of AFME’s inaugural Supervision & Integration conference which took place in Frankfurt on 23 May 2019, and in response to keynote speeches by Luis de Guindos, ECB Vice-President, and Dr Jörg Kukies, State Secretary of the German Ministry of Finance, Michael Cole-Fontayn, Chairman of AFME, said: “The European banking market continues to suffer from fragmentation across national lines. While the system is safer and more resolvable than 10 years ago, Banking Union is not yet delivering its expected integration benefits and it is negatively affecting cross-border banking services and cross-border M&A, which remain limited in the euro area.” “A continued lack of trust by Member States in each others’ facilitation of risk sharing also lies at the root of this. This is resulting in barriers to the free flow of capital and liquidity across the EU, preventing the diversification of risk and, perversely, running the risk of introducingsystemic fragilities.” “We need to unlock the full benefits of Banking Union. In order to do so, we must move forward with implementing the roadmap for a system-wide European Deposit Insurance Scheme (EDIS). This also requires the huge progress already achieved - through stronger prudential requirements and more effective supervision and resolution – to be acknowledged.” “More also needs to be done to deepen capital markets in the EU by continuing to implement the Capital Markets Union (CMU) project. Capital markets are an important source of private risk sharing across borders, which contribute to smoothing economic shocks and reduce the need for public risk sharing. By focusing on building more integrated banking and capital markets in the EU, this will create a financing market, which will, in turn, power EU investment, innovation and growth in the longer term.” In a new short paper, AFME makes further recommendations on how to achieve a truly integrated European financial market, or Financing Union. The paper is available online here. -ENDS-

Following the agreement by the European Parliament on the Risk Reduction Measures Package (RRM), Michael Lever, Head of Prudential Regulation, said: “We welcome the final agreement on the RRM package by the European Parliament, which marks an important milestone in lowering the risk of bank failures and avoiding tax payer funded bailouts.” “Despite these achievements, much remains to be done. The European banking market continues to be segmented across national lines and Banking Union is failing to deliver the degree of financial integration expected. Distrust amongst Member States lies at the root of this, resulting in barriers to the free flow of capital and liquidity across the EU, preventing the diversification of risk and introducing systemic fragilities.” “Unlocking the full benefits of Banking Union requires this lack of trust to be addressed. It also requires the huge progress already achieved - through stronger prudential requirements and more effective supervision and resolution – to be acknowledged. The establishment of a European Deposit Insurance Scheme would clearly help the move in that direction.” -ENDS-

The Board of the Association for Financial Markets in Europe (AFME) today announces that Simon Lewis OBE, its Chief Executive, will be stepping down from his role when his current contract expires at the end of October. Simon was the founding CEO of AFME when he joined in 2010. Since then AFME has more than doubled in size with over 80 people now based in London, Brussels and Frankfurt. Simon has led a team that has developed the Association into a powerful voice for banks operating in Europe’s wholesale financial markets and ensured that AFME plays a pivotal role as a bridge between its members and policy makers in the UK and the EU27. He has led the Association in its engagement with the European Commission on critical issues, such as Capital Markets Union, Banking Union and the implementation of MiFID II. He has also played a key role in the Association’s work on Brexit, which has sought to inform regulators and policy makers about the potential impact of Brexit on the functioning of Europe’s capital markets. During almost a decade with the organisation, he has overseen the opening of the AFME offices in Brussels and Frankfurt, which are instrumental in the Association’s fact-based advocacy. He also established the Association’s Frankfurt and Paris advisory boards, made up primarily of members who are on the ground and help to steer the organisation’s expanding footprint in Europe. Under Simon’s leadership, AFME was recently recognised as “Overall Best European Association” at the European Association Awards 2019 in Brussels. The AFME Board has commenced a process to identify a successor, to ensure there will be time for a smooth handover. Michael Cole-Fontayn, AFME Chairman, said: “Simon has been the driving force behind AFME for the past nine years and we are deeply grateful for his leadership. Simon will hand over a flourishing organisation that has achieved so much on his watch and will continue to be a leading advocate for Europe’s financial markets for years to come.” Simon Lewis said: “I am proud of all we have achieved at AFME as a team as we approach our tenth anniversary this year. Over these years we have navigated many significant market events and ensured that Europe’s wholesale financial markets participants have been able to inform policy and thinking at the highest level.” “It has been a privilege to work for three outstanding Chairs over the last nine years and to have had such a supportive, engaged Board committed to the aims and ambitions of AFME. I would like to thank Michael Cole-Fontayn for all his support and expert stewardship of the Board. I am looking forward to welcoming my successor into a great organisation that has so much to deliver.” -ENDS-

New York, NY, 8 April 2019 – To aid in the socialization of the development of overnight, nearly risk-free rates (RFRs), and the transition processes from Interbank Offered Rates (IBORs) impacting globally-active financial institutions, the Global Financial Markets Association (GFMA) today released the following documents outlining the various parts and players: Key Timelines and Milestones for the U.S. dollar, Japanese yen, Euro, UK pound sterling, and Swiss franc; A Snapshot of the IBOR and RFR variables associated with each currency; and An ‘At a Glance’ Tracker of each official sector working group’s activities and near-term expected actions. Sylvie Matherat, Chair of GFMA and Chief Regulatory Officer and Management Board Member at Deutsche Bank AG, said, “The transition to new IBOR rates will impact capital markets globally across market participants, products and clients. It will pose significant challenges for the industry and to manage it successfully it is essential that there is awareness and focus now. To support this, we have created a snapshot of the largest five IBORs to help firm identify the key developments in the transition.” Kenneth E. Bentsen, Jr., CEO of GFMA and President and CEO of SIFMA, said, “The Financial Stability Board (FSB) Official Sector Steering Group and its members have done a good job of raising awareness of the need to transition from LIBOR to alternative reference rates. The goal for our document is to assist the FSB, national regulators and the industry in focusing awareness on the importance of preparedness and coordination for the transition to new reference rates on a global scale.” Click here to access all the documents.

At its meeting in Brussels, AFME approved the application of Natixis to join its Board. An AFME member since 2009, Natixis becomes the first new AFME Board member since 2010, joining 21 other leading European wholesale banking groups on AFME’s governing body. Simon Lewis, Chief Executive of AFME, said: “We are delighted to welcome Natixis to the AFME Board. As a strong player in Europe’s capital markets Natixis will bring an added dimension to the Board’s work. We are proud that AFME’s board comprises such a wide cross-section of Europe’s wholesale markets and the appointment of Natixis shows that the role and purpose of AFME as a pan-European trade group is more important than ever. We will be delighted to welcome Luc François, Head of Global Markets, Corporate & Investment Banking, as our new AFME Board member.” Luc François, Head of Global Markets, Corporate & Investment Banking, Natixis, said: “With our headquarters in France and our activities across the continent, Europe is at the heart of Natixis’ businesses. We are committed to supporting strong pan-European capital markets at the service of the continent’s economies. We are delighted to have been approved as a Board member of AFME, which will allow us to further our contribution to the regulatory decision-making process while benefitting more fully from AFME’s extensive wholesale banking expertise.” -ENDS- Notes to EditorsBiography: Luc François began his career in 1986 at IBM before joining Société Générale in 1988 where he held several positions before being appointed Global Head of Equity and Equity Derivatives in 2007. He joined Morgan Stanley in London in 2008 as Head of Equity Derivatives and European Equity. In 2011, he was appointed Global Head of Derivatives. In 2012, Luc François joined Natixis as Head of Global Markets. Luc François is a graduate of Supélec (Ecole Supérieure d’Electricité).

The Global Financial Markets Association (GFMA)and PwC have today published a new report on current trends in technology and innovation and their impact on the investment bank of the future. The report, entitled ‘Technology and Innovation in Global Capital Markets,’ examines the key trends which are expected to impact the industry over the next five years, providing a vision for the future and identifying the implications for the industry and for future policymaking. Kenneth E Bentsen Jr., CEO of the GFMA, said: “Global investment banks are embracing opportunities to enhance the current operating environment, enabling firms to build out systems to meet global regulatory requirements, evolving client expectations and serving clients in jurisdictions they want to do business. In order to take advantage of the opportunities in this developing environment, banks are prioritizing investment in technology and innovation. Policymakers and regulators have a key role to play here by promoting innovation and supporting the adoption of new technologies, whilst ensuring that future regulatory frameworks maintain a level playing field and promote integrity of capital markets and financial stability.” Isabelle Jenkins, Partner at PwC, said “Our report shows that new technologies will drive changes across investment bank functions, their workforce, and industry partnerships. Success will depend on the ability of investment banks to achieve long-term benefits from new technologies by prioritizing investment, looking to collaborate where possible, identifying and developing the skills needed, and building a culture for innovation.” The report was developed through a survey of representative banks regionally at AFME, ASIFMA and SIFMA, to provide a collective view globally of developments impacting capital markets. It was supported by additional research from PwC. Among the key findings from the report are: Technology is one of the most powerful levers banks have to address potential disruption, tackle existing industry challenges and deliver future opportunities. While an average of 90% of survey respondents (regional breakdown: US 90%, Asia 83%, Europe 95%) identified the opportunity for cost reduction as the most important driver for the adoption of new technologies, only 27% on average (US 27%, Asia 30%, Europe 25%) felt that the current investment allocated by banks to this strategic change was sufficient. There are four core technologies - Data & Analytics, Cloud Computing, Artificial Intelligence (AI) and Distributed Ledger Technology (DLT) – which have the potential to transform banks and the industry; A clear data management strategy is an immediate priority as it is the enabler for the four core technologies identified. However, across industry, there are varying levels in the maturity of how data is currently being managed and the approaches to realize its future value; Significant implementation of Distributed Ledger Technology (DLT) remains a longer-term priority based on the current complexity of bringing large-scale enterprise and industry solutions to market, as well as integration with legacy systems, and considerations for data privacy and cybersecurity; An average of 82% of survey respondents (US 75%, Asia 90%, Europe 80%) believed the impact of new technologies on the workforce will lead to business and IT skills merging and future roles becoming more relationship focused. Competition for future skills will be high, requiring banks to both invest in re-skilling the existing workforce and driving cultural change to attract new talent; New technologies will shape investment banks to be increasingly automated, data-led, open and agile and connected into a wider pool of technology and service providers; Banks, policymakers and regulators must keep pace with new technologies to balance the potential risks and cybersecurity concerns they may introduce. Any future regulatory frameworks should be applied with a proportionate and principles-based approach, but at the same time ensure a level-playing field that creates an open, competitive and sustainable market for technology and innovation. Clickhereto download the full report -Ends-

Following the publication of the Commission’s progress report on Capital Markets Union, AFME Chief Executive, Simon Lewis, said: “Today’s progress report highlights the significant steps that have been taken towards achieving Capital Markets Union (CMU) over the last four years, but there is still much further work to be done in order to meet the aims of this vital initiative.” “Although time is short within this current legislative cycle, we believe further progress can still be made in key areas such as the ESAs review over the coming weeks.” “CMU should also be given even greater emphasis in the next Commission, with an ambitious agenda and a vision for the future.Maintaining political momentum at EU member state level will also be essential to tackle long-term barriers and fragmentation, in areas such as insolvency and taxation reform, in order to support economic growth.” – Ends – Notes to editors: In September 2018, AFME published a report tracking the progress to date of the Commission’s Capital Markets Union project through seven key performance indicators identifying what further work needs to be done: https://www.afme.eu/globalassets/downloads/publications/afme-cmu-kpi-report-4.pdf

Following today’s ‘meaningful vote’ on the Withdrawal Agreement in the UK Parliament, Simon Lewis, Chief Executive of AFME, said: “There are now just 17 days remaining until the UK is due to leave the EU and the lack of agreement today means a no-deal scenario continues to be a very real concern.” “Our members will continue to implement their contingency plans in order to minimise disruption in a no-deal Brexit scenario. It is essential that UK, EU and Member States and regulators provide clarity on mitigating remaining no deal risks such as continued servicing of uncleared derivatives, data transfers, and the implications of the trading obligations for shares and derivatives.”

Following the political agreement reached in trilogues on the Investment Firms Review package yesterday, Pablo Portugal, Managing Director of Advocacy, said: “We welcome that the provisional agreement retains the current scope of services covered under the EU third country equivalence regime for investment firms. Removing key services such as dealing on own account and underwriting from the cross-border provision of MiFID services would have severely restricted the EU regime for market participants to access liquidity and services provided from outside the EU.” “The equivalence framework has been significantly amended with the inclusion of provisions allowing the European Commission to apply specific operational conditions to an equivalence decision where the activities performed by third country firms are likely to be of systemic importance. It is important that these and other amendments serve to preserve the integrity of EU markets and the benefits of open, competitive and globally integrated financial markets, and are exercised appropriately.” “We look forward to analysing the details of the agreement in other important areas.”