Articles from 5-12 November
General Financial Policy
EP: Long-term EU budget deal: a “win-win” result to face the challenges ahead : In Wednesday’s plenary debate, MEPs welcomed the agreement reached on EU financing, as well as the deal linking EU funding to respect for the Rule of Law.
Project Syndicate: The Case for an EU Development Bank : Werner Hoyer: The European Union needs to reinforce its development financing activities in order to level the playing field with the United States and China. Establishing its own development bank would have an immediate, significant, and resource-efficient impact.
EURACTIV: Hungary’s Orban threatens EU budget veto over rule-of-law : Hungarian Prime Minister Viktor Orbán has threatened to veto an EU accord linking the bloc’s long-term budget to a mechanism requiring countries to uphold Europe’s democracy rules, according to an EU source on Sunday (8 November).
Banking Union
FT: EU banks urged to prepare for bad loans as pandemic hits economy : Head of body responsible for winding down failing lenders issues warning. European banks need to prepare their balance sheets for the risk of pandemic-induced non-performing loans hitting them in the new year, the head of the EU agency tasked with winding down failing lenders has said.
ISDA: Understanding the New IBOR Fallbacks Opening Remarks : Fallbacks mitigate the systemic risk that would arise from the cessation of a key interbank offered rate (IBOR) and, as such, they will be absolutely critical in the months ahead. During today’s event, we will look at what the fallbacks are, why they are important and how they work.
Capital Markets Union
Better Finance: Public Letter to the European Parliament's ECON Committee: Harm Done to EU citizens as “Retail” Investors Through MiFID II “ : We welcome the EC’s initiative to alleviate some regulatory requirements .... However, we wish to warn about the long-term detrimental effects that several provisions and amendments will have on “retail” investor protection if done in “haste” and without proper scrutiny and attention to details.
ESMA CONSULTS ON MIFID II/ MIFIR OBLIGATIONS ON MARKET DATA : The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, has today launched a Consultation Paper (CP) seeking input from market participants in relation to its draft guidelines on the MiFID II/MiFIR obligations on market data.
ESMA sees potential for sudden reversal in investors’ risk assessment : The European Securities and Markets Authority (ESMA), the EU securities markets regulator, today publishes its second risk dashboard for 2020 which sees a continued risk of decoupling between asset valuations and economic fundamentals.
ESMA releases Report on post trade risk reduction services : ESMA, the EU's securities markets regulator, has today released a Report on Post Trade Risk Reduction services (PTRR) under EMIR. The Report analyses whether any trades that directly result from PTTR services should be exempted from the clearing obligation.
BIS: OTC derivatives statistics at end-June 2020 : The gross market value of over-the-counter (OTC) derivatives, which provides a measure of amounts at risk, rose from $11.6 trillion to $15.5 trillion during the first half of 2020, led by increases in interest rate derivatives.
Environmental, Social, Governance (ESG)
CDSB: The UK Government announces intention to mandate climate disclosure by large companies and financial institutions across the economy: CDSB welcomes mandatory implementation of climate risk disclosures using the TCFD recommendations across major sections of the UK economy by 2025
IASB: Trustee Chair’s keynote to UNCTAD on sustainability reporting : Sustainability and climate change are global challenges, and there is now growing focus on how companies perform and report on these matters. So sustainability reporting is continuing to increase in importance for various stakeholders.
BETTER FINANCE Response to the European Supervisory Authorities' Survey on templates for Environmental and/or Social financial products unde : BETTER FINANCE welcomes the the use of specific templates to standardise the disclosures of ESG information.
EBA: Jose Manuel Campa delivers keynote speech at the XVII international professional conference on good corporate governance : He highlighted the corporate governance challenges faced by the financial sector.
Fin Tech Regulation
BIS: An early stablecoin? The Bank of Amsterdam and the governance of money : Trust is the bedrock of a sound monetary system. This paper examines the rise and fall of the Bank of Amsterdam (1609-1820) to gain insights on the central bank underpinnings of money. It sheds light on the governance of digital currencies.
Brexit
FT: Brussels holds out on post-Brexit financial services access for UK : EU still unsure what rights to grant City of London despite Sunak step. Brussels has warned that it will only grant the City of London market-access rights that are “in the EU’s interests” even after Britain adopted regulatory decisions designed to smooth future ties.
Chancellor sets out ambition for future of UK financial services : The UK will remain an open, attractive international financial centre, and extend its global leadership in green finance and financial technology, under plans outlined by the Chancellor Rishi Sunak
ESMA updates Brexit statements for the end of UK transition period : ESMA, the EU’s securities markets regulator, has updated three statements which address the impact on reporting under EMIR and SFTR and on the operation of ESMA databases and IT systems after 31 December 2020, the end of the UK’s transition from the EU.
EBA reminds financial institutions of the need for readiness in view of the Brexit transition period ending on 31 December 2020 : From that date provision of financial services from UK authorised institutions to EU customers on a cross-border basis (passporting) will no longer be possible.