Graham Bishop.com

Barroso: It is important now not to lose momentum on financial reform.
President Barroso said that the European Council has to give a clear signal that the forthcoming Commission proposals on financial market regulation will be adopted by the end of 2011. He believes a financial transaction/activities tax is needed. View Article

Olli Rehn: Spain's and Portugal's austerity plans are supported by the Commission
Commissioner Olli Rehn presented the Commission’s assessment of the action taken by 12 member states to correct excessive deficits. The Commission also assesed that there are now new excessive deficits in Denmark, Finland and Cyprus, and recommended deadlines for their correction to the Council. View Article

IIF Interim Report on the cumulative effects of new bank regulation
IIF calls on G20 Summit and International Regulatory Authorities to achieve a global consensus on core capital and liquidity elements of reform. IIF’s report is based mainly on the Basel Committee’s proposals on capital and liquidity requirements that were announced last December. View Article

Chancellor of the Exchequer George Osborne revealed that the FSA "in its current form" will disappear by 2012
Speaking at The Lord Mayor’s Dinner, George Osborne said the Bank of England will cover the micro and macro financial supervision and he will create a Consumer Protection and Markets Authority in place of the FSA. He also noted the UK has one of the highest budget deficits in Europe. View Article

CEPS debate on the integration of the Euro-area Government bond market
Panellists agreed that integration of the Euro-area Government bond market will be a positive step for the Euro-zone. However difficult decisions need to be taken. A Commission official said that common issuance and “EU debt agency” could be a possible salvation for future crises. View Article

SIFMA offers guidance to enhance regulators’ ability to protect against systemic risk
SIFMA paper concludes that systemic risk regulation can be more effective by drawing on resources which already exist in the system - either in current regulatory filings or in firms’ own risk and information systems - and leveraging infrastructure and repositories of data. View Article

Bishop: The European crisis – crossing a watershed on integrating economic governance but continued fragmentation of financial regulation?
An alternative outcome to a fracturing of the euro area - could the crisis deepen the relationship between all members of the eurozone? They agreed broadening of economic surveillance to include competitiveness imbalances, but will Council still be timid on financial regulation? View Article

Geithner seeks unity on bank capital standards
Treasury Secretary Geithner warned senior U.S. bank regulators that their differences could undercut the U.S. government as it negotiates new international bank standards with other countries, the Washington Post reports. View Article

TARP repayments surpass TARP funds outstanding
The US Treasury announced in its May Troubled Asset Relief Program (TARP) report to Congress, that TARP repayments have surpassed the total amount of TARP funds outstanding. "TARP repayments have continued to exceed expectations, substantially reducing the projected cost, an official said. View Article

SEC approves new stock-by-stock circuit breaker rules
The Securities and Exchange Commission approved new rules in response to the May 6th events that will require the exchanges and FINRA to pause trading in certain individual stocks if the price moves 10 percent or more in a five-minute period. View Article

IMF: Asia Playing Crucial Part in Reshaping Global Economy
Based on its successful economic policy management, Asia will continue to make a major contribution to both global growth and the design of policies to deal with challenges in the post-crisis world, IMF Deputy Managing Director Naoyuki Shinohara said View Article

ECON committee debate on CRD III - End bankers' bonus culture say MEPs
Bailed-out bank directors must get no bonuses until banks have repaid public support, bankers' bonuses must be capped at 50% of total remuneration, and bankers' bonus payments should be deferred until profits are actually earned, not just forecast. The rules will be voted in its plenary in July. View Article

CEBS guidelines for the operational functioning of colleges
CRD II requires the establishment of supervisory colleges as an instrument for stronger coordination and cooperation whereby competent authorities reach agreement on key supervisory tasks. The colleges are expected to play a role in preparation and handling of emergency situations. View Article

CEBS methodology for the assessment of the equivalence of third countries' confidentiality provisions – CRD II
The methodology includes key principles which encapsulate the standards of professional secrecy required by the CRD as well as core indicators of equivalence, which provide guidance in determining whether the relevant jurisdiction achieves the CRD’s objectives View Article

CEBS guidelines on capital instruments referred to in Article 57(a) of the CRD II
CEBS has developed a set of 10 criteria for the assessment of capital instruments that may be included in institutions’ original own funds without limit. These criteria - that form the basis of CEBS’s guidelines - stipulate direct issuance of eligible capital and limit their redemption. View Article

CEBS 2009 Annual Report: Enhanced role of colleges in co-ordinating supervisory activities and decisions
At the end of 2009, 33 supervisory colleges had been established, and CEBS’s goal is to increase further the number of EEA headquartered banking groups for which there is a college in place. Looking ahead, CEBS will be preparing its smooth transition into the future European Banking Authority. View Article

ECB González-Páramo: Revival of securitisation markets is needed in many countries to support the provision of credit to the real economy
Speaking at the AFME/ESF conference, González-Páramo said that in order to have a revival of the ABS market there is a need to increase transparency, standardisation and product simplicity. It is that area where the industry has to step up its efforts in order to restore confidence in the market. View Article

FESE response to CESR consultation paper on equity markets - More light on the OTC market is needed
FESE recommends that the EU regulation should ensure price formation, fair and orderly markets, and a level playing field. These are very important objectives laid out by MiFID which in some cases need re‐strengthening. View Article

Plenary debate on OTC derivatives – EP own initiative report in line with Commission’s ideas, Barnier said.
Commissioner Barnier stressed that derivatives are useful financial products, but they could also be dangerous. He confirmed that the Commission intends to adopt a proposal on OTC derivatives at the beginning of September after having analyzed the consultation responses. View Article

Commission consults on Derivatives and Market Infrastructures
The Commission proposals include mandatory clearing of all "standardised" OTC derivatives, mandatory reporting of all OTC derivatives to trade repositories and common rules for CCPs and for trade repositories. View Article

Commission consults on short selling and Credit Default Swaps
The proposed measures aim to empower the Member States in reducing risks to financial stability arising from short selling and Credit Default Swaps, as well as to facilitate co-ordination between Member States and ESMA in emergency situations. View Article

Global securities regulators adopt new principles and increase focus on systemic risk
IOSCO has published its revised Objectives and Principles of Securities Regulation to incorporate new principles, based on the lessons learned from the crisis and subsequent changes in the regulatory environment, which are designed to strengthen the global regulatory system against future crises. View Article

IOSCO's Chairman: A clear concept of systemic risk in markets is needed; this analysis is still a nascent science
Speaking at the 35th IOSCO Annual Conference, Jane Diplock said that one of the major lessons of the Global Financial Crisis is the highly interconnected nature of securities markets. It may be time to rethink regulator’s “institution by institution approach” and move to a network analysis. View Article

CEA calls for greater recognition of insurance business model
The president of the CEA has called on regulators and policymakers to ensure that any initiatives in response to the financial crisis are appropriate for the sectors to which they apply. Moreover, regulators should differentiate between financial services sectors. View Article

Swiss Funds Association: Implications of AIFMD are unclear
AIFMD covers all non-Ucits, and their managers, that are distributed in the EU; it will have substantial implications for third countries such as Switzerland. A liberal delegation principle comparable with that in the case of Ucits would be a good solution for Swiss managers, the SFA said. View Article

EFAMA/PwC joint survey: European Asset Management Industry needs to step up preparations for UCITS Key Information Document
PWC's Blondeau stressed that “Although considered to be a step in the right direction, members of the European asset management industry are concerned about the effectiveness of the KID and its capacity to create a level playing field for European funds under UCITS IV”. View Article

Wolfgang Münchau: The limits of the small-country mindset
Münchau argues that the rush for austerity programmes is likely to fail. The programme is insufficiently focused and the Commission’s agenda is not primarily geared towards growth, but competitiveness. For an economy with a more or less balanced current account, this is an odd choice. View Article

ECB Bini Smaghi: Europe, the United States and the new challenges to the global economy
Bini Smaghi argues that the US and Europe have different attitudes towards future growth – Europe more cautious, US with more optimism. However, the challenges they face require a coordinated approach and market reforms to restore competitiveness. View Article

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This week in "Brussels"

17 June 2010

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