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Participants exchanged views on bank structural measures, recent developments in bank resolution, central counterparty (CCP) resolution, derivatives reforms, securitisation within the context of the Capital Markets Union, money market funds, alternative investment fund managers, benchmarks, information sharing for supervisory and enforcement purposes, cybersecurity, and cooperation on audit oversight.
Capital Markets Union (CMU)
EU participants presented the outlines of the EU’s efforts to facilitate access to market-based finance through the creation of a CMU. In this context, the EU participants presented the EU plans to review the Prospectus Directive and to develop ‘simple, transparent and standardised securitisation’ building on the international work streams led by the Basel Committee on Banking Supervision and the International Organization of Securities Commissions (IOSCO), and on the EBA’s advice to the European Commission.
Derivatives
EU participants and participants from the SEC and CFTC reported that respective bilateral discussions regarding CCPs, notably recognition under EMIR, were continuing in a constructive manner.
Banking
Participants discussed the Federal Reserve’s existing proposals for enhanced rules on capital surcharges and leverage for the largest U.S. banks. The EU participants provided an update on the state of play of the legislative developments on bank structural reform in the EU.
Fund issues
EU participants reiterated their concerns about the effect of the Volcker Rule on foreign funds. Participants noted that the FAQs recently published by the Federal Reserve (together with other agencies) addressed many of the questions regarding foreign public funds. The EU participants urged the U.S. participants to find a solution to the remaining important issue regarding foreign private funds in a timely manner.
Bank Resolution
Participants noted the continued progress made this year on cross-border resolution and reaffirmed the deep cooperation between the European Commission, EBA, Single Resolution Board, FDIC, and Federal Reserve on technical aspects of resolution. The U.S. banking agencies, the Treasury, and the EU participants look forward to the Financial Stability Board’s finalisation of a proposal for an international minimum standard on total loss absorbing capacity (TLAC) in time for the G20 Leaders’ Summit in 2015.
CCP Resolution
Participants emphasised the importance of clear, credible, and well-designed recovery and resolution frameworks for CCPs in line with internationally-agreed standards. Participants discussed the evolving EU and U.S. approaches and options for cross-border cooperation.