Liquidity management tools meaning

This timeline outlines key developments linked to the Alternative Investment Fund Managers Directive (EU) 2011/61/EU (EU AIFMD) from January 2024 onwards. For earlier developments, see Alternative Investment Fund Managers Directive (AIFMD)—timeline [Archived]. For further guidance on EU AIFMD, see Practice Note: EU AIFMD—essentials. For guidance on the UK Alternative Investment Fund Managers (AIFM) regime, see Practice Note: UK regulation of alternative investment fund managers—essentials. 2026 13 March 2026 — ESMA — Guidelines on Liquidity Management Tools (LMTs) for UCITS and open-ended AIFs. The European Securities and Markets Authority (ESMA) has published guidelines on LMTs for UCITS and open-ended AIFs...

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In this issue: EU fundamentals Commercial Competition and state aid Financial services Environment Insurance and reinsurance IP Life sciences TMT International trade Daily and weekly news alerts New and updated content Trackers EU fundamentals The priorities of the Hungarian Presidency of the Council of the EU (July–December 2024) EU law analysis: The programme for the Hungarian Presidency of the Council of the EU has been released, outlining its agenda and strategic focus for 1 July to 31 December 2024. This analysis summarises the principal priorities for the Hungarian Presidency across Practice Areas. See News Analysis: The priorities of the Hungarian Presidency of the Council of the EU (July–December 2024)... Commercial Directive on common rules that promote the repair of goods published in Official Journal Directive (EU) 2024/1799 of the European Parliament and of the Council, dated 13 June 2024, on common rules encouraging the repair of goods—amending...

EU financial services developments ESMA publishes supervisory briefing on algorithmic trading under MiFID II ESMA has released a supervisory briefing aimed at ensuring uniform oversight of algorithmic trading throughout the EU under the Recast Markets in Financial Instruments Directive (2014/65/EU) (MiFID II). It equips National Competent Authorities (NCAs) with actionable tools and clearer expectations for monitoring firms that deploy algorithmic trading, concentrating on areas of divergent practice such as pre-trade controls, governance structures, testing regimes and the outsourcing of algorithmic trading systems. The paper also considers new technological trends and sets out points to consider for the application of AI. Although not legally binding, the briefing supplements existing obligations and helps NCAs pursue a harmonised supervisory approach overall. Source: ESMA issues a supervisory briefing on algorithmic trading ESMA proposes amendments to buy-back programme rules following Listing Act changes ESMA has issued a report suggesting updates to Commission Delegated Regulation 2016/1052 concerning buy-back programmes and stabilisation measures (RTS), reflecting the amendments to the Market Abuse Regulation (MAR)...

This Practice Note sets out hot topics for restructuring and insolvency specialists. It is updated regularly with practical guidance and analysis that mirror recent changes and trends in the restructuring and insolvency market. To monitor the progress of key UK legislation (including Bills and Statutory Instruments (SIs) in progress), regulation, professional standards and consultations relevant to these professionals, see Practice Note: Restructuring & Insolvency—horizon scanner. Liability Management Exercises (LMEs) UK R&I practitioners are increasingly adopting informal restructuring tools—particularly LMEs, first pioneered in the US—to use flexibility within the original lending documentation (sometimes inadvertently allowed by lenders) to rework the capital structure, access additional and/or cheaper debt, or reduce leverage. LMEs are generally deployed to give debtor companies breathing space and to address liquidity strains caused by: shifting economic conditions rising costs (notably fuel and energy) new market entrants geopolitical risks supply chain disruption market dislocation (for example, via AI) skills and immigration challenges LMEs do not...

Practice Note This Practice Note offers a concise overview of the equity and incentive compensation schemes and agreements that US startups routinely use to recruit and retain essential personnel. Although it focuses on US companies, many of the matters highlighted are equally pertinent to a non-US company in the early phases of development. To effectively advise US startups, and the investors who frequently fund them, it is crucial to understand startup equity and incentive pay structures, and the reasons they may differ from those found in more established businesses. The discussion below broadly surveys remuneration practices among investor-backed, Kickstarter-funded, and bootstrapped startup ventures, where founders aim to scale the company swiftly (and enhance its value) with a view to an exit or liquidity event via an initial public offering (IPO) or a sale. This environment is characterised by short- to mid-term horizons in which investors (alongside founders and senior executives) expect robust growth and strong returns. That outlook contrasts with the mindset behind many new small enterprises or family-owned...

As a result of coronavirus (COVID-19) pandemic Investment funds have grappled with both operational pressures and the fallout from sharp swings in international markets. The pandemic, together with pronounced volatility and the valuation challenges it sparked, has driven substantial market corrections and heightened liquidity risks, causing strain across various parts of the financial system, including certain areas of the investment fund industry. These developments are outlined in a joint committee report on risks and vulnerabilities in the EU financial system, released by the European Securities and Markets Authority (ESMA) and the other European Supervisory Authorities (ESAs) in September 2020. The Financial Conduct Authority (FCA) has issued guidance setting out its expectations for funds in the context of coronavirus. It recognises the considerable difficulties firms face, yet still expects them to act in the best interest of their investors at all times. ESMA and the Investment Association (IA) have also provided guidance. The European Systemic Risk Board (ESRB) has adopted a recommendation on liquidity management....