The Brexit knife-edge is nearly over, but Bloomberg pointed out that about half of London share trading is in EU stocks – a category that may move to the mainland.
(This e-mail provides the headers of a selection of the articles published this week. If you would like to upgrade to our Gold service and access all articles - with live links to the underlying news - please click on the button)
Articles from 2 - 8 October
General Financial Policy
ECON: Hearing of Mairead McGuinness : The Economic and Monetary Affairs Committee questioned Mairead McGuinness, the Irish candidate for the financial services portfolio,
POLITICO: EU lawmakers confirm McGuinness and Dombrovskis as finance, trade commissioners : Parliament’s vote clears the way for Commission reshuffle.
Eurogroup Work programme until June 2021 : Priorities include: Strengthening the Banking Union, the euro as a digital currency, international role of the euro
Remarks by Commissioner Gentiloni at the Eurogroup press conference : .. strengthening of the banking union and the capital markets union... We also look forward to engaging in the discussions on the international role of the euro and on a digital euro, on which the ECB has just presented an important report. Fiscal:The General Escape Clause will remain active in 2021
CEPS: A proposal for a public infrastructure leasing entity for Europe : Is it possible to accelerate public investment without increasing national taxes or public debt? The authors of this piece believe so, and present a mechanism to relieve member states’ public finances, which are already burdened by ballooning deficits and galloping deficit ratios.
Banking Union
SSM Enria: An evolving supervisory response to the pandemic : I thank you for this opportunity to share some thoughts on the evolving supervisory response to the pandemic, as we brace for the impact of the shock and prepare for a “new normal”.
EBA saw that NPL ratios remained stable in Q2-2020 although early signals of asset quality deterioration: The European Banking Authority (EBA) published today its quarterly Risk Dashboard covering Q2 2020 data and summarising the main risks and vulnerabilities in the EU banking sector.
ECB takes steps to ensure pan-European reach of instant payments : The ECB has taken an important move towards the full reach of instant payments across the euro area. Its ultimate objective is to enable European citizens to make real-time electronic payments in euro from and to any country, including in physical shops and online.
Capital Markets Union
ICMA publishes preliminary thoughts on the new Capital Markets Union Action Plan : ICMA is pleased to share its preliminary thoughts on the European Commission’s new Capital Markets Union Action Plan highlighting the importance of Europe’s debt capital markets in funding the recovery from the COVID-19 pandemic.
UK Finance: The Capital Markets Union Action Plan – September 2020 edition : Those of us involved in capital markets regulation in the European Union (EU) could be forgiven for asking if we are back in autumn 2015 rather than autumn 2020. The Commission has launched – with much fanfare – a Capital Markets Union (CMU) Action Plan.
Who is automating the primary bond markets? ICMA publishes new edition of technology directory : In light of a rapidly expanding competitive marketplace, ICMA is publishing the third edition of its primary markets technology directory. It was initially launched in 2018 and seeks to compare the key features and capabilities of technology solutions available to automate all...
Benchmark Regulation: Council adopts position on amendments addressing LIBOR cessation : Member states' EU ambassadors today agreed the Council's mandate for negotiations with the European Parliament on the proposed amendments to the regulation on indices used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds
Environmental, Social, Governance (ESG)
EFAMA’s REPLY TO THE EUROPEAN COMMISSION’s TARGETED CONSULTATION ON THE ESTABLISHMENT OF AN EU GREEN BOND STANDARD : EFAMA strongly supports the initiative to establish an EU Green Bond Standard (GBS). We believe that, thanks to the recommendations made by the TEG, the GBS has a great potential to effectively play its important role in financing assets needed for the low-carbon transition.
ESBG: EU green bond standard : ESBG says in consultation that standards proposed by EU Commission technical expert group could create economic benefits
ICMA responds to the EC consultation on the EU Green Bond Standard (EU GBS) : While we agree that the proposed EU GBS will address some of the barriers mentioned in Q1, we do have additional concerns around the newly introduced principles of DNSH and minimum safeguards.
Insurance Europe: Green Bond Standard can help boost investment in transition to a more sustainable economy : Insurance Europe has today published its response to a consultation by the European Commission on its EU Green Bond Standard (GBS).
Accountancy Europe: EC’s consultation on the establishment of an EU Green Bond Standard : There is lack of clarity of definitions (what constitutes ‘green’) and not all investors and issuers are comfortable with investments/bonds that may not be green.
Protecting Customers
JOINT INDUSTRY LETTER: Impact of CJEU Schrems II ruling on the framework for international data transfers : The European Banking Federation, together with five other financial industry associations, has co-signed a letter calling attention to the impact of the Court of Justice of the European Union (CJEU) “Schrems II” ruling on the framework for international data transfers.
Fin Tech Regulation
ECB: A digital euro : In this new era, a digital euro would guarantee that citizens in the euro area can maintain free access to a simple, universally accepted, safe and trusted means of payment.
ECB's Panetta: We must be prepared to issue a digital euro : Digitalisation is spreading to all areas of our lives, satisfying an increasing demand for immediacy in how we consume, work and interact with each other. In many ways, it is disrupting our cultural, social and economic fabric. The way we pay is no exception.
VOX: Central bank digital currency remuneration in a world with low or negative nominal interest rates : The prospect of central bank digital currency has raised concerns over its potential to cause structural (i.e. permanent) or cyclical (i.e. crisis-related, temporary) bank disintermediation.
Brexit
Bloomberg: London’s Days as Europe’s Stock Trading Hub Are Numbered : EU may require dealing in its companies to remain in the bloc, more than half of daily volume in London is in EU shares
FT: Barnier and Frost hint at space for compromises in Brexit trade talks : The UK and EU’s chief Brexit negotiators have spoken of the need to explore compromises on the most difficult issues remaining in the two sides’ trade talks, as Britain’s cabinet office minister Michael Gove said there was “cause for steady optimism”.