Speech Almunia on European government bond markets

Speaking at the European Primary Dealers Association Summit in Brussel, Commissioner Almunia outlined the impact of the recent market turmoil on financial and government bond markets and the issues to be addressed. Turning to the government bond market, Almunia underlined that “there is evidence that we can improve further the functioning of this market”.

‘Turquoise’ trading platform steps closer to reality

The investment banks behind the rival trading platform ‘Project Turquoise’ have moved closer to seriously challenging Europe's traditional stock exchanges and ultimately undermining the logic behind some of the takeover valuations that has driven consolidation in the sector. 

Pressure on MasterCard rises as wait for card fee ruling drags on

Europe's retailers have turned up the heat on MasterCard ahead of an upcoming decision by the European Commission on whether the payments card company should be forced to cut its interchange fees, while the Commission's departments overseeing antitrust rules and the internal market wrangle over the functioning of Europe's payments systems.

NYSE Euronext creates European block-trading platform

NYSE Euronext and two leading European investment banks, BNP Paribas and HSBC, create a Multilateral Trading Facility, to be known as Project SmartPool to make the execution of large orders in European listed stocks easier. Project SmartPool will be accessible to all European sell-side firms.

FT: Project Turquoise has persistently floundered

Project Turquoise was announced with great fanfare almost a year ago as a much-needed competitor to Europe’s stock exchanges. But nearly a year on – with new rules aimed at promoting competition in European markets coming into effect next week – the project, backed by a group of heavyweight international banks, has almost nothing it can show for its efforts.

Turquoise announce technology and CEO

After the disappointing outcome over Plus Markets, various factions are coming out and poking fun at Turquoise. Unlike BOAT, Turquoise has little to show for its efforts so far, and were still looking for a Chief Executive.  Turquoise has been delayed and delayed, with launch pushed back to summer 2008 because they haven't been able to select the core platform.

MiFID uncertainty haunts capital markets firms

The vast majority of financial services firms - 93% - do not believe that MiFID will be consistently implemented and enforced across the member states involved, according to research released by UK-based EA Consulting Group.The research show a distinct lack of confidence that MiFID will be consistently applied across Europe.

ECB Speech González-Páramo: The euro money and financial markets

Speaking at the Spanish Capital Markets Forum, José Manuel González-Páramo, Member of the Executive Board of the ECB, drew some preliminary lessons from the recent financial turmoil. “Recent events have revealed some weaknesses in the organisation and functioning of the financial system, in particular regarding the market for complex structured products and the liquidity in this market under stressed conditions”, he said and pointed out the key weaknesses.

AMF Regulation and Asset Management Newsletter No3

This third AMF Newsletter focuses on the management of credit risks with regard to the US subprime mortgage crisis. Further issues include the MiFID Directive, Fund Marketing Documents, and a Q&A with Didier Le Menestrel.

Commission report on ownership rules for audit firms

The Commission published an independent study on the ownership rules that apply to audit firms and their consequences on audit market concentration. The study analyses whether changes to the ownership rules of audit firms might help increase the number of international players in the audit market.

FISCO report on EU fiscal compliance procedures

The Commission’s Fiscal Compliance expert group (FISCO) issued a report setting out solutions to fiscal compliance barriers related to clearing and settlement of cross-border securities transactions. The report puts forward concrete proposals for improving and speeding up the way these transactions are settled.

CESR consultation on MiFID work program

CESR published the future draft work programme for MiFID which focuses on the operational aspects of MiFID requirements. High priority is given to the aspect of the cooperation in the exercise of  core supervisory functions. Deadline for consultation is 19 November 2007.

CESR final steps before MiFID goes live

CESR published a set of documents to provide clarity and assist market participants in the transition toward smooth implementation of the MiFID Directive on 1 November 2007. Among others, a common protocol for the supervision of branches under MiFID sets out a framework for co-operation between competent authorities.

ECON meeting 22 October (Strasbourg)

Ms Beres informed members of the progress of negotiations with the Council and Commission on the Comitology alignment of the eight acts. She said that the horizontal question of sunset clauses had been resolved to the satisfaction of all institutions.

Council statement on financial market turmoil

The Chairman of the EU Council of Economic and Finance Ministers Mr dos Santos said that the recent disturbance may reflect a healthy correction towards a sounder pricing of risk, but also raise questions to the proper functioning of some markets and the assessment of risk transmission channels. Dos Santos announced a review to be undertaken by the Economic and Financial Committee. 

CESR updates MiFID Market Transparency Database

CESR published an update of the database on MiFID Market Transparency. The information included in this database allows market participants to recognise liquid shares and to determine the block sizes for waivers from pre-trade transparency requirements and delayed post-trade publication. From 1 November 2007, the list will be updated regularly based on the data provided by CESR’s members.

Plus terminates talks with Turquoise

Talks between UK trading platform Plus Markets and bank-backed equities trading platform Project Turquoise have fallen through after the two parties failed to agree on terms for a takeover deal. Plus said that it had signed a preliminary non-binding agreement that could lead to a reverse take-over by an un-named third party.

European leaders ratify Treaty of Lisbon

José Sócrates, president of the Council of the European Union, announced the agreement among European leaders on the new reform Treaty. The EU's reform Treaty will be formally signed on 13 December in Lisbon.  For the current president of the Council of the EU, this accord on the new Treaty will allow Europe to “overcome the impasse of many years and overcome its institutional crisis, giving thus an important step towards its affirmation”, Sócrates said.

Statement of G-7 Finance Ministers and Central Bank Governors

The G-7 Finance Ministers and Central Bank Governors declared that recent financial market turbulence, high oil prices, and weakness in the US housing sector will likely moderate economic growth. “Following recent global market turbulence, the functioning of financial markets is improving”, it was stated.

European Parliament welcomes new treaty

European Parliament President Hans-Gert Pöttering welcomed the agreement on a new Treaty as a great success for the European Parliament. " With this Treaty, Parliament obtains co-decision over almost all Community legislation and sees its political role considerably strengthened." A formal proclamation of the Charter by the Presidents of the three EU institutions will take place in the European Parliament on 12 December, the day before the signing of the Treaties.

Informal European Council Lisbon 18-19 October

On Financial Markets, the Heads of State or Government reviewed the economic and financial situation, in light of the recent developments triggered by the subprime mortgage market in the United States. They encouraged the Finance Ministers, the European Commission and the ECB to continue to monitor closely developments in financial markets and the economy.

FSF Preliminary Report on recent market turmoil

The FSF published its preliminary report on the recent financial market turmoil which points out a number of weaknesses in financial markets. The FSF has established a Working Group which will develop a thorough diagnosis of the causes of recent events, identify the weaknesses that merit attention from policymakers; and recommend actions needed to enhance market discipline and institutional resilience.

AMF report to assess framework for funds of hedge funds

The AMF releases the report by the working group set up to assess France's framework for funds of hedge funds and to propose potential avenues of improvement. The group recommends moving from a regulatory approach to a framework founded on principles.

Speech McCreevy EU-China Roundtable on Financial Services and Regulation

Opening the second EU-China Roundtable on Financial Services and Regulation Commissioner McCreevy underlined that China needs a sound regulatory framework for Financial Services. McCreevy noted that the Chinese retail banking markets is becoming increasingly open to foreign players and welcomed the Chinese plan to implement Basel II. Also, Solvency II has already been attracting a lot of attention in China, he said.

AMF consultation on General Regulation project

The AMF launched a public consultation on its draft General Regulation concerning the opening of a segment of the regulated market for admissions with no prior public offering. The AMF intends to amend its General Regulation to make it easier for foreign companies domiciled inside or outside the European Union to list in France. Deadline for responses is 1 November 2007.

Lloyds TSB charged in US money-laundering probe

Lloyds TSB found itself at the centre of an alleged money-laundering scandal as prosecutors in the US filed civil charges against Lloyds and Bank of Cyprus. The banks are said to have facilitated money-laundering by a Cypriot businessman, Lycourgos Kyprianou, the former chairman of AremisSoft, a Nasdaq-listed software company that filed for bankruptcy amid allegations made by US authorities of insider trading on a massive scale.