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ECON Committee published all responses to the consultation on the review of MiFID
In December 2011, Rapporteur Markus Ferber (EPP, DE) launched a consultation based on a questionnaire to inform the Committee's work on the review of MiFID. Among the 194 replies, there are responses from banks, corporate and stock exchanges.
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ESMA consultations on MiFID
ESMA published the responses received to the consultations on certain aspects of the MiFID requirements for suitability and compliance.
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ECON Committee consideration of draft report on CRAs
The EU's credit rating agency reform plans need to be beefed up, in order to replace "unsolicited" sovereign debt ratings of EU Member States with ratings by an independent body, reduce reliance on agency ratings, and eliminate conflicts of interest that could influence them, said rapporteur Leonardo Domenici (S&D, IT).
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ISDA and industry response to BCBS paper on application of own credit risk adjustments to derivatives
This paper focuses on gains and losses arising from changes in the creditworthiness of counterparties to OTC derivatives and Secured Financing Transactions (SFTs), without examining the relationship to gains and losses arising from a Firm's other liabilities, such as debt issued held at fair value.
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ESMA readies guidelines on automated trading
ESMA published the official translations of its final "Guidelines on systems and controls in an automated trading environment for trading platforms, investment firms and competent authorities", first published on 21 December 2011. High frequency trading (HFT) is one form of automated trading.
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IOSCO makes recommendations on OTC derivative mandatory clearing
IOSCO's report outlines recommendations that authorities should follow in establishing a mandatory clearing regime for standardised OTC derivatives, in support of the G20's Leaders Commitments to improve transparency, mitigate systemic risk and protect against market abuse in these markets.
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VoxEU: Basel regulation needs to be rethought in the age of derivatives (Parts 1 & 2)
These columns by Paul E Atkinson and Adrian Blundell-Wignall aim to bring banking regulation back to the centre of attention. They argue that the Basel III regulations currently being proposed are already desperately out of date. Part 2 outlines how to put this right.
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ALFI response to ESMA’s consultations papers on MiFID suitability requirements and on compliance function requirements
ALFI would recommend taking into account the fact that investment firms can only rely on the information provided by their clients, and that it is those clients' responsibility to give true and reliable information, as well as to communicate any relevant changes in their personal situation.
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AMF: Price formation on the CDS market - lessons of the sovereign debt crisis
Further to recent trends in CDS prices and sovereign bond yields, this memo looks into the subject of price formation on CDS markets, notably on sovereign issuers. Interviews were conducted on this subject with operators on these markets.
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Consob: Restrictions lifted on net short positions on financial securities
On 24 February 2012, the restriction on short sales that had been adopted on 12 August 2011 and subsequently extended was finally lifted. This provision entailed the prohibition from taking or increasing short positions on shares in the financial segment, including intraday.
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FN: New reports highlight HFT research divide
The Swedish regulator issued a report which finds that the negative effects related to high frequency and algorithmic trading are limited.
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FN: Settlement rules will put Europe ahead
The G20 works on a regulatory framework for delivering the financial stability that will underpin new global financial architecture. Current regulatory reforms can be divided into two streams - those initiatives that deal with risks identified by the last crisis, and those pre-emptive in nature.
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EuropeanIssuers' comments on CRAs
EuropeanIssuers strongly support a clear distinction between "solicited ratings" and "unsolicited ratings".
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EACT comment on latest EU proposals for regulation of credit rating agencies, and on ECON report
EACT believes that some measures proposed by the Commission would have negative consequences on the use of ratings by corporate issuers. It emphasises how financial regulatory agenda needs to take proper account of how end users in the real economy are impacted.
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IFR: Moody's move threatens Triple A ABS
Moody's downgrade of Italy and Spain two weeks ago, combined with its decision to cap ratings for structured finance bonds from those countries to four notches above sovereign ratings, has stripped a series of originators of the ability to achieve Triple A ratings.
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ECMI: Pending issues in the review of the European market abuse rules
In this Policy Brief, Carmine di Noia argues that rules on market abuse should be technically well-designed, proportionate and crystal-clear, but also subject to more efficient supervision than before.
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