Graham Bishop.com

Friends 'Weekly' Newsletter

19 January 2017

NPLs, CRR, EMIR, MiFID II, Euro “clearing”, EU/US Agreement on insurance and reinsurance, FSB proposals, IFRS 9, IFRS 16 Leases, Theresa May's Brexit speech, Brexit, financial services trading, equivalence and more.

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Asset Management	Corporate Governance/Accounting	Friends' Services
Political		About this email

Articles from 12 January 2017 - 19 January 2017

	Banking

EBA updated Risk Dashboard shows that elevated NPLs and a high cost base pose a significant profitability challenge for EU banks
The European Banking Authority (EBA) published today a periodical update of its Risk Dashboard summarising the main risks and vulnerabilities in the EU banking sector by a set of Risk Indicators in Q3 2016.

EBA and ESMA call to clarify margin requirements between CRR and EMIR
EBA and ESMA published their joint report on the functioning of the Capital Requirements Regulation with the European Market Infrastructure Regulation.

	Securities

ESMA issues briefing on transaction reporting requirements under MiFID II
ESMA published guidelines for transaction reporting under MiFID II and MiFIR. Additionally, ESMA released technical requirements and templates further detailing the relevant reporting requirements under MIFID II and MIFIR.

Financial Times: LSE dismisses report on moving clearing to Germany
The London Stock Exchange Group has hit out at an academic report commissioned by its merger partner Deutsche Börse that highlighted the benefits of moving the LSE’s prized clearing business to Frankfurt.

	Insurance

Commission welcomes the successful conclusion of negotiations on an EU/US Agreement on insurance and reinsurance
The European Commission and the US Department of the Treasury and Office of the Trade Representative jointly announced the successful conclusion of negotiations of an Agreement between the EU and the USA on insurance and reinsurance.

	Asset Management

Investment & Pensions Europe: FSB proposals ‘positive’ for asset managers, investors, says Moody’s
Long-term investors and large asset managers will benefit from rule changes proposed by the Financial Stability Board (FSB), despite their cost, according to Moody’s.

	Corporate Governance/Accounting

IASB consults on clarifications to IFRSs
The IASB has published proposed amendments to three Standards for public consultation as part of its annual improvements process.

EFRAG's Endorsement Advice on Applying IFRS 9 Financial Instruments with IFRS 4 Insurance Contracts
EFRAG has completed its due process regarding Applying IFRS 9 Financial Instruments with IFRS 4 Insurance Contracts (Amendments to IFRS 4) and has submitted its Endorsement Advice Letter to the EC.

EBA’s views on the adoption of IFRS 16 Leases
The EBA has published its comment letter to EFRAG on IFRS 16 Leases. The EBA’s view on IFRS 16 is based on a qualitative and quantitative analysis of the impact of the new Standard.

	Friends Services

Theresa May's Brexit speech
Prime Minister May delivered her much-trailed “Brexit framework” speech this morning… but is it coherent and consistent? The short answer is No.

Euro “clearing”: Liability and Location
This issue of `clearing’ is likely to come to a head quickly once Article 50 Notice of `intention to leave’ is served by the UK - as a direct consequence of the G20 commitment to ensure there are no more taxpayer-funded bailouts of EU financial institutions.

	Political

Bloomberg: HSBC CEO says bankers generating 20% of London revenue may move
HSBC Holdings Plc Chief Executive Officer Stuart Gulliver said trading operations that generate about 20 percent of revenue for the lender’s investment bank in London may move to Paris, quantifying some of the aftershocks for the UK after Brexit.

The government's negotiating objectives for exiting the EU: PM speech
Prime Minister Theresa May set out the Plan for Britain, including the 12 priorities that the UK government will use to negotiate Brexit.

Financial Services Negotiating Forum: Examining Regulatory Equivalence
A new report by the global law firm Norton Rose Fulbright, commissioned by the Financial Services Negotiation Forum. The paper examines approaches to the interpretation and measurement of equivalence.

TheCityUK: Brexit and UK-Based financial and related professional services
TheCityUK issued its key priorities for the UK-based financial and related professional services industry in the Brexit negotiations. The lobby dropped its demands for preserving 'passporting' rights and is now pushing for 'equivalence' deal as the simplest way to trade freely across EU countries.

Graham's tweets

Threatening to turn the UK into a deregulated tax heaven will not only hurt British people—it is a counterproductive negotiating tactic
— Guy Verhofstadt (@GuyVerhofstadt) January 17, 2017

Sad process, surrealistic times but at least more realistic announcement on #Brexit. EU27 united and ready to negotiate after Art. 50.
— Donald Tusk (@eucopresident) January 17, 2017

My view on Theresa May's #BrexitSpeech - full analysis of a plan riddled with inconsistencies #brexit #SingleMarket https://t.co/ecHOX7Dud1
— Graham Bishop (@GrahamBishopcom) January 18, 2017

Agreement on orderly exit is prerequisite for future partnership. My priority is to get the right deal for EU27. #Brexit
— Michel Barnier (@MichelBarnier) January 17, 2017

Forget "having our cake and eating it", now Britain will eat its cake and live with an empty plate afterwards https://t.co/tzoJKV7EGK
— The Economist (@TheEconomist) January 17, 2017

My thoughts on May's #BrexitSpeech - a plan riddled with inconsistencies that sets out to cherry-pick Single Markethttps://t.co/lLWVJzfybo
— Graham Bishop (@GrahamBishopcom) January 17, 2017

Houses of Parliament to get final vote on Brexit deal w/EU..May questioned what happens if it is rejected, unfortunately no answer. #Brexit
— D Kinsella (@KinsellaDE) January 17, 2017

PM says "associate membership" of customs union is possible, doesn't want common tariff or commercial policy
— Faisal Islam (@faisalislam) January 17, 2017

Theresa May wants agreement on partnership before 2-year period ends, then phased transition https://t.co/6jC9ClPLli pic.twitter.com/mdog7k3Mab
— Bloomberg Brexit (@Brexit) January 17, 2017

May says there will be a “phased process of implementation”. So the government does want a transition deal
— Sebastian Payne (@SebastianEPayne) January 17, 2017

Theresa May wants free trade agreement with Europe but not Single Market access
— European Movement UK (@euromove) January 17, 2017

#TheresaMay has committed to placing a final #Brexit deal to a vote in both houses of the UK parliament https://t.co/eKChbC7Tq5
— CNN International (@cnni) January 17, 2017

Wohin verlagert sich das Euro-Clearing nach dem BREXIT? Dazu ein Diskussionsbeitrag von @GrahamBishopcom unter https://t.co/BL2Babydxi
— Karl von Wogau (@kwogau) January 17, 2017

My comprehensive paper on Euro #clearing: Liability & Location - read a summary & get full text upgrading to Friend! https://t.co/hI0dcFw5hc
— Graham Bishop (@GrahamBishopcom) January 16, 2017

Through his first UK interview, we learn that @realDonaldTrump will offer Britain a quick and “fair” trade deal https://t.co/PmOqgy3Sme pic.twitter.com/CDBCMi6kDc
— The Times of London (@thetimes) January 15, 2017

"We should be ready to trust Putin", says @realDonaldTrump in his first UK interview as president-elect https://t.co/bi7OFMtyhb pic.twitter.com/4TNeGwEzjx
— The Times of London (@thetimes) January 15, 2017

Don't miss my latest report on the hotest #Brexit topic this week: euro #clearing - Liability and Location https://t.co/jr05wRO6cj
— Graham Bishop (@GrahamBishopcom) January 16, 2017

Euro #clearing: "Liability and Location" article: After #Brexit, extraordinary risks for UK and EU27 - 50xUK GDP!! https://t.co/D3GlpxZTVm
— Graham Bishop (@GrahamBishopcom) January 16, 2017

ECB and UK urged to share regulation of euro clearing market https://t.co/m5A1VLdziV
— FT Brussels (@ftbrussels) January 16, 2017

Government urged to give Parliament vote on #Brexit deal https://t.co/JvXXVP9whs Exiting the EU Committee's first report @UKParliament
— Graham Bishop (@GrahamBishopcom) January 14, 2017

When asked on equivalence I said: EU would need special vigilance on financial stability risk, not special deal to access the City @guardian
— Michel Barnier (@MichelBarnier) January 14, 2017

We have agreed our first report on the process for exiting the EU & the Gov's negotiating objectives, to be published on Sat 14 Jan #brexit
— Exiting the EU Cttee (@CommonsEUexit) January 12, 2017

EU equivalence is the City’s next Brexit battle https://t.co/rVDcjffbVP
— Finance News (@ftfinancenews) January 12, 2017

Carney says Brexit no longer biggest financial stability threat, more here: https://t.co/idlRhcZe7w #BBABrief
— BBA (@bbavoice) January 12, 2017

Examining Regulatory Equivalence - a new report by @NLawGlobal - sets out building blocks for EU-UK access for FS https://t.co/gHxOJpXckZ
— FSNForum (@FSNForum) January 12, 2017

Here’s how Theresa May needs to approach the Brexit negotiations, writes London MEP and @ecrgroup leader @SyedKamall https://t.co/WliwEXoaMS
— BrexitCentral (@BrexitCentral) January 12, 2017

Friends 'Weekly' Newsletter

19 January 2017

© Graham Bishop