Financial Regulatory Forum

Asia regulators say G20 reform driven by U.S., Europe

By Daisy Ku and Rachel Armstrong

HONG KONG, Nov 29 (Reuters) – The lack of a unified Asian voice in the Group of 20 leading economies means the United States and Europe are driving the overhaul of global financial regulation with several of the new rules posing significant challenges for emerging markets, regulators said in a regional summit on Monday.

The G20 has endorsed a series of major reforms to banking and financial market regulation, which the five Asian members of the group and Financial Stability Board members Hong Kong and Singapore have signed up to.

But Asian regulators say a number of these rules pose significant difficulties for their markets, while others don’t address the way the crisis hit their economies. This, they say, is partly due to the fact that the United States and Europe find it easier to arrive at a common approach to regulatory change.

“There isn’t a uniquely Asian voice and I think that’s a challenge,” Martin Wheatley, head of Hong Kong’s Securities and Futures Commission (SFC), told the Pan-Asian Regulatory Summit held by Thomson Reuters unit Complinet.

New rules on banking liquidity, part of the so-called Basel III framework, were highlighted as one area where the reforms hadn’t taken into account the size of some emerging markets’ debt capital markets.

ANALYSIS-Regulation may dim growth of ‘dark pools’ in Asia

By Kevin Lim and Adrian Bathgate

SINGAPORE/WELLINGTON, Aug 17 (Reuters) – “Dark pools” and other alternative trading systems are not as big a threat to Asia’s bourses as they are for their western counterparts, given regulators’ reluctance to grant them a free reign and due to structural differences in markets.

Dark pools, so named because they represent large pools of “buy” and “sell” orders not visible to regular investors, operate relatively freely and match billions of dollars in stock transactions each day in the west.

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ANALYSIS-Japan banks to bear brunt of new capital rules in Asia

A woman walks past a Nomura Securities branch in Tokyo September 25, 2009. Japan's Nikkei stock average slid 2.6 percent on Friday, as financial shares were hit hard after Nomura Holdings said it plans to issue up to $5.6 billion in shares, raising concerns other banks could follow suit.  REUTERS/Toru Hanai (JAPAN BUSINESS)   By David Dolan
   TOKYO, Oct 2 (Reuters) – After raising $54 billion of equity this year to ride out the financial crisis, banks in Asia are likely to tap markets for billions more as the G20 moves towards tightening capital requirements for global lenders. (more…)

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