Financial Market Infrastructure Act

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Basic data
Title: Federal law on financial market infrastructures and market behavior in securities and derivatives trading
Short title: Financial Market Infrastructure Act
Abbreviation: FMIA
Type: Federal law
Scope: Switzerland
Legal matter: Commercial administrative law
Systematic
legal collection (SR) :		 958.1
Original version from: 19th June 2015
Entry into force on: January 1, 2016
Please note the note on the applicable legal version.

The financial market infrastructure law (abbreviation: FinfraG , English FMIA of Financial Market Infrastructure Act ) is a Swiss federal law to regulate the OTC derivatives trading. The core of the regulation is the obligation of market participants to clear their over-the-counter standard derivative transactions via a central counterparty , the reporting of OTC transactions to a trade repository and the obligation to establish risk-reducing business practices. The intent and content of FMIA are similar to EU Regulation No. 648/2012 (Market Infrastructure Regulation) and the American Dodd-Frank Act , although the requirements for market participants without a banking license (non-banks, NFC for non-financial counterparty ) are less strict than are in the market infrastructure regulation. The law came into force in early 2016; FINMA was commissioned with the implementation .

Legislation and entry into force

Consultation for the Financial Market Infrastructure Act began on December 13, 2013 . In its explanatory report, the Federal Department of Finance referred to the implementation of the resolutions of the G20 summit in Pittsburgh in September 2009. The law was proposed by the Federal Council on September 3, 2014 , and was in the legislative process until November 2015 .

In the version proposed in October 2014, the most controversial issues were the relaxed conditions for non-banks compared to the Market Infrastructure Ordinance and the implementation of position limits, as set out in Directive 2014/65 / EU on markets in financial instruments ("MiFID II") in the EU should be tightened even further. Position limits are upper limits for the value of contracts that an individual market participant may hold. On the one hand, the recognition of FMIA as an equivalent regulation to the Market Infrastructure Ordinance and the Dodd-Frank Act is intended. On the other hand, the Swiss business location, which is the seat of many international financial institutions and commodity traders, should not be unnecessarily damaged. In June 2015, the National Council opposed position limits for commodity derivatives, while the Council of States supported them .

On June 19, 2015, both the National Council and the Council of States adopted the law in a final vote. The draft law was subject to an optional referendum , so if 50,000 voters or eight cantons had requested it within a hundred days of its publication, a referendum would have been required before it came into force . The referendum period expired on October 8, 2015, without it happening.

In accordance with Article 164 (2) FMIA, the Federal Council set the entry into force of FMIA and the associated FMIA Ordinance (FMIA) on January 1, 2016.

On September 14, 2018, the Federal Council decided not to put the reporting obligation for derivative transactions for small non-financial counterparties into effect until January 1, 2024.

Obligations of market participants under FMIA

Similar to the Market Infrastructure Ordinance, the transaction reporting obligation began six, nine or twelve months after FINMA approved the first FMIA trade register (TR). The period depends on the classification of the respective counterparty ("counterparty"). The reporting obligation began for:

  • Financial counterparties (“FC”, e.g. banks) and central counterparties (“CCP”, e.g. stock exchanges) six months after TR approval, ie on October 1, 2017;
  • Non-financial counterparties ("NFC", e.g. large securities dealers) nine months after TR approval, ie on January 1, 2018;
  • Small non-financial counterparties ("NFC-", e.g. traders of physical commodities without major derivatives trading) twelve months after TR approval, i.e. on April 1, 2018.

On April 1, 2017, two FMIA TRs were approved, which set the above deadline in motion:

Law and regulations

Individual evidence

  1. ↑ Federal Council opens consultation on the Financial Market Infrastructure Act . Federal Council press release of December 13, 2013.
  2. ↑ Explanatory report on the consultation draft “Federal Law on Financial Market Infrastructure (FMIA)” of November 29, 2013.
  3. ↑ Dispatch of the Federal Council of September 3, 2014: Dispatch on the Financial Market Infrastructure Act (FMIA) . In: Bundesblatt , vol. 2014, No. 40 of October 14, 2014, pp. 7483-7646.
  4. ↑ Summary of the legislative procedure for the Financial Market Infrastructure Act (FMIA) , No. 14.061. In: Curia Vista, business database of the Federal Assembly.
  5. ↑ FMIA - draft . In: Bundesblatt , vol. 2014, No. 40 of October 14, 2014, pp. 7647-7698. (The following amendment provisions to existing laws)
  6. ↑ National Council against position limits for commodity derivatives . In: Neue Zürcher Zeitung from June 15, 2015.
  7. ↑ Limits for speculators . In: Neue Zürcher Zeitung from June 2, 2015.
  8. ↑ Federal Assembly: Overview of the negotiations , summer session 2015, p. 78. (88 / 14.061 n Financial Market Infrastructure Act, FMIA)
  9. ↑ Bundesrat (Ed.): Bundesrat puts the Financial Market Infrastructure Act into effect on January 1, 2016 . Bern, November 25, 2015.
  10. ↑ Federal Department of Finance: Federal Council extends transitional period for reporting derivatives transactions by small non-financial counterparties , notification dated September 14, 2018.
  11. ↑ Art. 130 FMIO, reporting to a trade repository
  12. ↑ FINMA supervisory notification 02/2017 , published on April 3, 2017
  13. ↑ REGIS-TR SA, Luxembourg, RCS-No .: B157650 (search in RCS )
  14. ^ FMIA on the REGIS-TR website
  15. ^ SIX Trade Repository AG, Zurich, company number CHE-109.427.061. (Search in ZEFIX )
  16. ↑ FinfraG TR ( Memento of the original from March 23, 2017 in the Internet Archive ) Info: The archive link was automatically inserted and not yet checked. Please check the original and archive link according to the instructions and then remove this notice. on the SIX Securities Services website  @1@ 2Template: Webachiv / IABot / www.six-securities-services.com