TARGET2 launched

The Eurosystem launched the single shared technical platform of TARGET2, the payment system used for settlement in real time of predominantly high-value euro payments in central bank money. TARGET2 will replace the decentralised technical platforms operating under the name TARGET. 

3L3 Committees consult on medium term work programme

The 3L3 Committees published a joint consultation paper on their medium term work programme setting out the work plan for the period 2008 to 2010 inclusive. Committees identified three categories of co-operation and convergence and identified six key areas within the three year term. Deadline for consultation is 18 January 2008.

Competitiveness Council

Among others, the Council adopted a conclusions on an integrated approach on competitiveness. Council also took note of a Presidency progress report and held an exchange of views on the better regulation agenda.

Main Conclusions of CEIOPS Conference 2007

Opening the Conference Thomas Steffen, chair of CEIOPS summarised the achievements and outlined the challenges ahead. Carlos Costa Pina underlined the success of the Lamfalussy process in achieving a greater level of co-operation between supervisors and increased transparency in the regulatory debate. Johnny Åkerholm mentioned a possible rationalisation of the consultation process.

CEIOPS report on QIS3

CEIOPS published the report on its third quantitative impact study. The report’s 16 pages executive summary indicates the overall impact on the degree of capitalization of the industry as well as a number of areas where guidance will be helpful before embarking on QIS4.

IPE: SEC risks reputation over investor rights, warns USS

The US Securities and Exchange Commission will miss the chance to show it is serious about investor rights if it forges ahead with a ruling stopping shareholders putting forward candidates for corporate boards. "The SEC will once again appear to be missing an opportunity to demonstrate to global investors that they’re serious about developing a more effective system of investor rights,” said Daniel Summerfield.

EFRP concerned over possible implications for IOPRs

The EFRP voiced its concern about the proposal for a Directive ‘Solvency II’. Speaking at the European Pension Funds Congress in Frankfurt Wil Beckers cautioned that “a quantitative impact study has indicated that if Solvency II rules were to be applied to IORPs, they would have to increase assets by around 40-60 % of liabilities or, alternatively, sell off equities in order to reduce risk.“

BIS Triennial and regular OTC Derivatives Market Statistics

The BIS released the latest statistics on positions in the global OTC derivatives market at end-June 2007, which comprise the preliminary results of the second part of the Tri-ennial Central Bank Survey of Foreign Exchange and Derivatives Market Activity as well as the regular semi-annual OTC derivatives statistics.

EFRP calls for more time for IOPR

The IOPR directive needs more time to deliver results, according to a new survey by the EFRP. “The impact of the IORP directive was judged as positive”, Chris Verhaegen said.“At this point in time, there are no signals in the market justifying the commencement of a review procedure”, Angel Martinez-Aldama, the EFRP chairman added.

IPE: Poland urged 'open foreign investment and prevent crash'

Current restrictions on pension funds for investment in foreign equities and the use of derivatives could lead to a crisis on the Warsaw stock exchange, Krzysztof Rybiński, deputy president of the National Bank of Poland, has warned.

IMCO meeting 21-22 November

Commissioner McCreevy outlined the main components of the single market review laying down the priorities for the coming years. “A key priority will be retail financial services”, McCreevy said. “Consumers and small businesses use financial services every day: bank accounts, credit and debit cards, home loans, insurance, savings and investments.”

CML calls for integrated European mortgage market

CML calls for an integrated European mortgage market that offers the same products at the same prices in different European countries. Outlining their expectations on the forthcoming Commission White Paper, CML fears that the Commission may be swayed by arguments for European regulation of the relationship between lenders and borrowers.

Walker guidelines on private equity transparency published

Sir David Walker’s final guidelines on transparency in the private equity industry have been published.  The code of conduct is aimed at improving the reputation of an industry whose secretive practices have come under fire.

Skinner - Finish Solvency II in 2008

Peter Skinner, of the committee on economic and monetary affairs at the European Parliament, has warned the Solvency II project has to be finished by next year. Speaking at the annual CEIOPS conference in Frankfurt, Skinner said: “We need to make sure that we finish this in 2008, before the change of mandate after the European parliamentary elections in 2009.

Icap to apply for exchange status

Inter-dealer broker Icap has disclosed plans to establish an exchange-based business in Europe and says it has applied to the UK's Financial Services Authority (FSA) for the status of a regulated market under the EU's new Markets in Financial Instruments Directive (MiFID).

CESR progress report on Credit Rating Agencies

CESR published a list of questions that has been submitted to the four Credit Rating Agencies asking for additional information. The questions deal mainly with areas of the structured finance market.

ECON meeting 20-21 November

President of the Eurogroup, Mr Juncker told MEPs of his concerns at rising inflation. He also warned against adopting a stance of "benign neglect" in the face of rapid changes in currency markets. Referring to the sub-prime market turmoil Mr Juncker noted that this is not over yet and its consequences might become more serious in 2008 rather than this year.

Commission presents single market review

The Commission set out a package of initiatives to modernise the European single market. Particular emphasis is given on further developing the single market as a driver for innovation, as springboard for businesses entering global markets, as an attractive location for investors and as a global rules and standards setter.

Commission presents review of the Lamfalussy process

The Commission published a Communication on the Review of the Lamfalussy Process. Although the process has broadly met its overall objectives, there is a growing consensus that some important changes are required in order to make it more efficient.

JURI meeting 19-20 November

Rapporteur Klaus Lehne introduced his report on simplified business environment for companies in the areas of company law, noting that the draft report is currently not available due to translation problems of the German draft text.  Mr Lehne noted that there are a number of directives that can be amended, particularly those resulting from the Sarbanes-Oxley legislation in the US.

Commission proposes initiative for development of micro-credit

The Commission adopted a communication to re-inforce the development of micro-credit in the European Union. The ambition is to improve access to finance for micro-entrepreneurs and socially excluded people towards the realisation of the Lisbon Strategy for growth and jobs and the promotion of social inclusion.

FT starts saga on US re-insurance collateral debate

An FT article on US re-insurance collateral requirements has produced a transatlantic debate between the US NAIC, European legislators and Lloyds. The article based on a Lloyds paper accusing US regulators of “doing nothing” in the past five years to tackle “discriminatory” rules that affect non-US re-insurers operating in the US.

ECB calls industry not to “misuse” SEPA

Speaking at the Euro Finance Week-SEPA Summit in Frankfurt, Ms Tumpel-Gugerell focused on the readiness for SEPA of consumers and of other payment instruments, in particular payment cards.  Ms Tumpel-Gugerell gave a warning shot to banks not to “misuse” SEPA, and blaming it for any unpleasant changes.

McCreevy welcomes SEC decision on reconciliation to US GAAP

Commissioner McCreevy welcomed the US SEC decision to abolish the reconciliation to US GAAP for foreign companies using IFRS. The EU was the first major jurisdiction to make IFRS mandatory for its listed companies and remains by far the largest jurisdiction applying IFRS.

Delay in MasterCard ruling threatens Sepa launch

An internal "spat" at the European Commission is causing further delays to a ruling on interchange fees charged by card operator MasterCard and raising fears that the on-going uncertainty could hinder the launch of the single euro payments area in January.

MLex: Commission to go easy on retail banking for now, but threatens tougher regulation

The Commission has backed away from hard-hitting intervention against banks and insurers who restrict the flow of retail financial services, through product tying or high account closure fees, despite a raft of investigations in recent years. The commission will offer the industry further studies and a self-regulatory approach with the latent threat of future regulation.

AMF position on equity lines and step-up equity financing

The AMF has published a position on equity lines and step-up equity financing programmes (PACEOs). The position is available in French only. 

SEC end reconciliation to US GAAP

The SEC approved rule amendments under which financial statements from foreign private issuers in the U.S. will be accepted without reconciliation to U.S. GAAP only if they are prepared using IFRS as issued by the IASB. SEC Chairman Cox also announced that the SEC will convene two roundtables, on December 13 and December 17.

ECB underlines importance of ECSB-CESR recommendations for securities clearing and settlement

Speaking at the ECB/Bank of England conference on “Payments and Monetary and Financial Stability” in Frankfurt, Ms Tumpel-Gugerell outlined that the changing roles of central banks in the field of payment systems.  “Central banks are increasingly concerned with the division of responsibilities and the allocation of risks between infrastructure providers and their clients”, she said.

AMF clarifies rules for private placements on Alternext

The transposition of the Prospectus Directive into France's Monetary and Financial Code changed the way that the public issuance of securities is defined.

Securities regulators discuss timetable for financial reporting

SEC Chairman Cox met with securities regulators from Japan, China, Korea, Canada and Australia discussing the timetables for implementation of interactive data initiatives for financial reporting. 

AMF instruction on reporting financial instrument transactions

Pursuant to its amended General Regulation, the AMF published Instruction 2007-06, which supplements the transposition procedure for the Markets in Financial Instruments Directive. The new instruction describes in detail how investment services providers (ISPs) and their branches are to report their transactions.