The Roadmap collates and summarises existing analysis made publicly available by the FSB, IOSCO, RFR Working Groups and other sources identified by the Trade Associations and provides a single point of reference for market participants seeking a highlevel overview of the global initiatives undertaken to date. It does not include unpublished information on the significant work already underway by the RFR Working Groups to address many of the challenges that are described in the Roadmap, but it does provide contact details for those groups, where available.

Non-performing loans (NPL) remain an issue thatsome EU Member States continue to deal with. As part of the CMU mid-term review, the European Commission (EC) will assess the case for the development of the secondary market of NPLs.

Available in... French German Spanish AFME has published a short paper highlighting some of the potential cliff edge risks that Brexit could create for market efficiency and financial stability. The Brexit process is presenting businesses, investors and banks with unprecedented challenges. The time pressure on firms to prepare themselves and their clients for the UK’s exit from the EU is increasing. However, it remains unclear what kind of exit and future relationship arrangements will be agreed upon. AFME has highlighted the need for transitional arrangements which would keep existing market arrangements in place for a limited period of time following the UK leaving the EU. This is necessary to provide certainty and stability to business and market participants as they prepare for the future arrangements that have yet to be agreed between the EU27 and the UK. However, while some cliff edge risks would be mitigated (in whole or in part) by a longer transition period, risks remain that need to be addressed irrespective of a transition. In this paper, we have therefore focused on issues which we believe require intervention from policymakers and/or regulators in the UK and EU27 and are not easily resolved by banks’ own plans or industry solutions. We hope this paper will provide further helpful clarity for the forthcoming discussions on the future relationship between the European Union and the UK. We would value your feedback on the report, so please let us know if you have any comments or questions.

The “Global and European Green Finance Policy Directory” is authored by the GGFC, a group comprised of global and regional financial industry organisations. The GGFC was founded by the Global Financial Market Association (GFMA), the International Capital Market Association (ICMA), the European Banking Federation (EBF), the European Covered Bond Council (EMF-ECBC), the Institute of International Finance (IIF), the Loan Market Association (LMA) and the World Federation of Exchanges. Other organisations are participating as observers, including CERES, the European Financial Roundtable (EFR) and InsuranceEurope. The purpose of the Directory is to provide policymakers and global and regional market participants with a simple reference guide to the major initiatives on green finance, sustainability and climate change being implemented by international and regional bodies and industry organisations. The document is a public online resource. The list is also not exhaustive and will be updated regularly to reflect legislative and non-legislative developments in the area. It can be read by global vs regional initiative, the goal of the initiative (e.g. setting emissions standards, encouraging standardised disclosure and reporting), composition of the organisation’s membership, and links where further information can be found.

Case studies on the significance of the ongoing EU banking reforms for the end-users of capital markets and the real economy AFME has published a new report highlighting the significant impact that key elements of the European Commission’s Risk Reduction Measures (RRM) legislative package could have on Europe’s capital markets and the wider economy. The report sets out eight case studies which explore the potential impact of the RRM on capital markets products and transactions used by different real economy actors such as corporates, institutional investors and EU governments. It is being released at an important moment for Europe’s financial markets where, a decade after the financial crisis, significant progress has been made towards building a stable and resilient financial system. The Risk Reduction Package marks an important step towards completing such efforts, which comes at the same time as the EU is implementing an ambitious programme to develop Europe’s capital markets and establish a Capital Markets Union. The report explains why the legislative proposals presented by the European Commission should not be considered in isolation, but rather in light of the very significant links they have with capital markets and the broader economy. It includes constructive proposals for how to achieve appropriate and effective prudential rules while also enabling capital markets to support Europe’s growth objectives.

The AFME European Primary Dealers Handbook is an invaluable reference work for European government bond market participants, as well as policymakers and journalists. The handbook offers a detailed description of the infrastructure of the primary and secondary markets in 16 European countries and the organisation of each of their Primary Dealer systems.

This educational document provides our members with a structured approach to understanding the post-tradetransparency (PTT) obligations defined under Article 6, 10, 20, and 21 of MiFIR. This document also highlights thekey challenges and practical implementation options for the impacted qualifying investment firms to consider as theyprogress with plans to be MiFID II compliant. This document will cover Firms impacted by MIFID II / MiFIR’s post-trade transparency requirements The data required to be reported When and where the data is to be reported Reporting scenarios Challenges that market participants will need to consider in order to implement the necessary reporting solutions Explanation of the relevant terms such as Approved Publication Arrangements (APAs), Systematic Internaliser (SI) andpost-trade transparency deferrals This document will not cover Transaction or position limit reporting Inducements or any contractual arrangements between counterparties This document is a collective effort by a number of subject matter experts (SMEs) from across the industry on the AFMEPTT Working Group. This document incorporates feedback from SMEs with industry and regulatory experience and aftera series of consultation discussions.

2017 has been a year of structural and political change, leaving the European capital markets industry with more questions than answers. At such a time of uncertainty, our role as a pan-European trade group could not be more important, not just to present the voice of the wholesale financial markets in Europe, but to provide a meaningful, fact-based contribution to help shape the future of our industry. AFME is committed to fostering deep and integrated European capital markets which serve the needs of companies, investors and savers across Europe. In the context of theevolving relationship between the EU and UK we believe this mission is best achievedby providing a bridge between EU27 and UK policymaking. As we look towardsthe next twelve months, AFME will continue to perform this role, representing theindustry and bringing to bear deep policy and technical expertise. We are now present on-the-ground in London, Brussels and Frankfurt, and AFME staff continue to make the industry voice heard through regular meetings with local policymakers, regulators and market participants across the EU27. As we enter the next phase of Brexit, it is critical that policymakers are well-informed of our industry’s concerns and the potential impact their decisions could have on the financial services sector. AFME’s fact-based contribution remains central to the debate. We continue to hold engagement meetings with officials and policy makers across Europe, calling for a smooth transition to ensure European capital markets are able to continue to function well. To support our asks, AFME has produced a portfolio of factbasedreports which contribute meaningful data on the potential impact of Brexit onthe wholesale banking industry, end-users and supervisors, most recently Bridging toBrexit: Insights from European SMEs, Corporates and Investors. This year marked an important milestone as the European Commission published its mid-term review of the Capital Markets Union (CMU) initiative. AFME has been a strongadvocate of the CMU initiative, which is more important than ever to boost growthand investment and channel capital to the real economy. Going forward, the focus onstrengthening supervisory powers, fintech and sustainable finance, among others, areall important CMU priorities which will ensure the project remains fit for purpose. One of AFME’s ongoing priorities continues to be raising awareness of the role capitalmarkets play in promoting growth. This year we produced two reports outlining howCMU can help address two key issues: the shortage of risk capital for high growthcompanies and the need to increase private investment in infrastructure. Addressingboth of these will help ensure that Europe continues to see steady growth. It is undoubtedly a challenging time for our industry in Europe, and AFME is dedicatedto promoting the ‘E’ in AFME more so than ever. I would like to conclude by expressing my sincere appreciation to my fellow AFME Board members and staff. I am so grateful for all they do for the industry. Michael Cole-Fontayn Chairman Association for Financial Markets in Europe September 2017

The market place for the cross-border provision of financial services between the UK and the EU is large and active and reflects over three decades of integration and the implementation of the single rulebook. The UK exit from the EU will change this. A new long-term partnership agreement will need to be negotiated and agreed, and transitional measures defined to help mitigate the impact of a revised market framework for businesses that buy and sell between the EU and the UK. The regulatory framework and financial passport that has enabled EU-based customers to access the diverse suite of cross-border financial products and services from UK-based banks1 will cease to apply after the UK’s exit from the EU. The same holds true for UK-based customers accessing financial products and services from EU-based banks. What, if anything, will replace these current rights to contract for such financial products and services between the EU and the UK remains unclear. This has important implications for the many customers that hold contracts for the provision of financial services between the two markets where the duration extends beyond the date in 2019 when the UK is expected to exit the EU. It is estimated that €1.3 trillion of UK-based bank assets are related to the cross-border provision of financial products and services to a variety of customers ranging from governments and individuals to businesses of all sizes. These services include lending and capital markets, risk management and foreign currency products and services spanning the entirety of the financial services sector, including banking, insurance and investment management. A significant proportion of this back-book of contracts extend beyond the 2019 exit date, providing important funding and risk management for businesses. Many of these services support EU exporting businesses that are key drivers of the EU and UK’s international earnings and strong contributors to economic growth and job creation. European and UK businesses are increasingly concerned about the potential impact on their existing contracts. The UK exit from the EU potentially creates significant uncertainty for these businesses, including with respect to the continuity of the contracts which support their funding, economic activity and risk management. Early action is required to provide the necessary clarity that these contracts will continue following the exit of the UK from the EU.

More than one year ago the UK public voted for the UK to leave the EU. With the Article 50 process being triggered in March, the two-year Brexit negotiation process is now well underway. AFME has argued consistently that during the negotiation process, market efficiency and financial stability must be safeguarded. The Brexit negotiations are taking place under significant time pressure with the UK’s membership of the EU due to end on 29 March 2019. Faced with no clarity on the future relationship between the EU and the UK, market participants are having to take important decisions amid considerable uncertainty. In light of this, AFME and others have consistently made the case for transitional arrangements following the Article 50 negotiation period. This note is intended to explain in more detail the importance and necessity of transitional arrangements as well as summarise our views on what such arrangements should look like. While we believe that transitional arrangements are essential, we share the view of the European Council that they must be clearly defined, limited in time, and subject to effective enforcement mechanisms. We also recognise the EU27’s prioritisation of matters to ensure an orderly withdrawal and the core principles set out in the Council Guidelines including the integrity of the single market. We believe that transitional arrangements are necessary to support these objectives of an orderly withdrawal, ensuring financial stability and the prosperity of both the EU27 and the UK. We urge the negotiators to progress with reaching agreement on the items under discussion in phase one of the negotiations in order to be able to move to discussing transitional arrangements as soon as possible.