The National Competent Authority & European Securities Market Authority have confirmed that they’ve been extensively monitoring the situation surrounding the COVID-19 Pandemic Virus, which causes adverse effects to financial markets throughout the European Union. Discussions were held between the Board of Supervisors with both respective authorities, where they examined contingency measures listed by various participants in the European Financial Market. After these discussions, the ESMA has recommended that these participating firms begin applying their contingency plans. This will extend to additional continuity measures, ensuring that regulatory obligations are met with these exchanges and firms. Exponential challenges face these firms and transactions in the coming months.
The European Securities & Markets Authority also advised that these participants disclose relevant information regarding the COVID-19 Virus. This pertains to the financial situation’s prospects and fundamentals, with these requirements following under the “Market Abuse Regulation & Transparency Obligations”. The ESMA clarified that disclosed information must be genuine and provide detailed assessments on the impacts of COVID-19 on their operational valuations. Knowing the business activities of exchanges will better assist analysts in determining the economic & financial situation for the 2020 fiscal year.
The National Competent Authority was present during this public announcement. Asset managers were told that risk management managers should react accordingly to the situation on a day-by-day basis. This situation will continue to be monitored movie forward, with the ESMA revealing that Provisional Powers will be implemented to guarantee that financial markets remain functional moving forward. This has guaranteed some level of investor protection and financial stability.
Emergency Measures
These announcements from the ESMA & NCA follow after the World Health Organization revealed that COVID-19 had become a pandemic on March 11th. Public briefings were held with the General Director of the WHO, Doctor Tedros Adhanom, where he expressed that this crisis would affect every industry worldwide. It was noted that everyone going forward must fight against this Pandemic and enact sanitary strategies to ensure the limited spread of the coronavirus.
Analysts close with financial markets have begun expressing that fintech firms are seeing clientele split they’re operational into three sectors. These include the 1/3rd of employees who are working from home, the additional 1/3rd that will continue to work throughout global offices and the final 1/3rd that will be quarantined moving forward. Individuals being isolated will be labelled the “Disaster Recovery Division”, who will be required to work in only the most severe and unexpected circumstances.