Financial Regulatory Forum

By Huw Jones

LONDON, Sept 15 (Reuters) – Differences between new European Union and U.S. rules to crackdown on derivatives will be a key test of how well transatlantic regulators can coordinate to iron out loopholes banks may be tempted to exploit.

The United States has already approved a law to tighten supervision of the $615 trillion off-exchange derivatives markets and the EU published its own draft law on Wednesday.

Both implement pledges the EU and United States made as members of the Group of 20 countries (G20) to require central clearing of as many contracts as possible, reporting of trades to repositories and where appropriate, trading on an exchange.

“The crunch item to get right is for trade repositories to make sure every regulator has access to all the data they have,” said Damian Carolan, a partner at Allen & Overy law firm.

“I don’t think there are any massive showstopper obstacles and there is enough recognition for third country solutions,” Carolan added.

   By John O’Donnell
   BRUSSELS, April 13 (Reuters) – European finance ministers will attempt to settle differences over how best to impose extra taxes on banks at a meeting in Madrid this week, sources familiar with the talks said. (more…)

   BRUSSELS, March 17 (Reuters) – The European Commission will crack down on “naked” selling and speculation in the market for credit default swaps with proposed controls as soon as June, the EU’s financial markets chief said on Wednesday. (more…)

    LONDON, Feb 23 (Reuters) – Spain’s Santander <SAN.MC>, Europe’s second biggest bank, said forcing banks to hold more capital to cover riskier activities would be better than forcing the break-up of big lenders. (more…)

    By Huw Jones
   LONDON, Feb 16 (Reuters) – European Union president Spain tightened proposed rules to regulate hedge funds and private equity groups, prompting accusations of protectionism from within the industry but potentially speeding up moves towards a deal. (more…)

Every new year brings resolutions, and the European Parliament is no exception.

Often derided as a multi-lingual talking shop, the institution is feeling newly invigorated by some fresh faces and by the European Union's Lisbon reform treaty, which came into force late last year and gives the 736-member parliament more say in drafting laws and acting as a check on legislation.

Almost immediately, parliamentarians were letting their voice be heard, forcing Bulgaria to withdraw its nominee for the European Commission last month because she wasn't seen to be up to the job. They also look ready to block an agreement between the EU and the United States on sharing data on bank transfers, and are really beginning to show their teeth when it comes to financial sector reform.

It's one aspect of the latter move -- reported exclusively by Reuters on Monday -- which is set to cast MEPs in the role of banker-bashers-in-chief and could put them on a collision course with national governments.

    ISTANBUL, Dec 22 (Reuters) – Turkey plans to pass a European Union-sought capital markets reform bill through parliament  before the end of March at the latest, the Capital Markets Board chairman said on Tuesday. (more…)

   By David Brunnstrom and Timothy Heritage
   BRUSSELS, Dec 11 (Reuters) – The European Union increased pressure on the International Monetary Fund on Friday to consider a global tax on financial transactions to limit the risk of another economic crisis.
(more…)

By David Brunnstrom and Timothy Heritage

BRUSSELS, Dec 11 (Reuters) – The European Union urged the International Monetary Fund on Friday to pursue a global tax on financial transactions to limit the risk of another economic crisis, despite U.S. opposition.

EU leaders also underlined the need for “sound and effective” financial sector pay at a two-day summit but, with the notable exception of Germany, did not broadly support French and British proposals to tax bankers’ bonuses heavily.

Although the leaders of the 27-nation bloc largely revived existing ideas, they signalled a desire to address voters’ outrage over a return of the big bonus culture in the banking sector so soon after it was bailed out with tax payers’ money.

   BRUSSELS, Nov 18 (Reuters) – Plans by three major European banks to sell chunks of their operations in return for state aid were approved by EU authorities on Wednesday, marking the latest regulatory-enforced financial break-ups. (more…)