Regulation Correspondent, Europe
Huw's Feed
Jun 17, 2015

UK watchdog defends hefty fines for banks who break rules

LONDON, June 17 (Reuters) – Stiffer fines for banks caught
trying to rig markets have not undermined financial stability or
the ability of lenders to stay solvent, a senior British
regulator said on Wednesday.

Georgina Philippou, acting director of enforcement at the
Financial Conduct Authority (FCA), dismissed criticisms that
recent penalties amounting to billions of pounds were damaging
the stability of the industry.

Jun 16, 2015

ECB’s Mersch says all systems go for new settlement platform

LONDON, June 16 (Reuters) – The euro zone’s new single
securities settlement platform being launched next week will
bolster financial stability in Greece and the wider single
currency area, a top European Central Bank official said on

The ECB’s T2S platform to unify settlement of
euro-denominated stocks and bonds starts operating on June 22
when Greece, Malta, Switzerland and Romania link in. Settlement
refers to exchanging cash for legal ownership of a security.

Jun 16, 2015

EU executive to propose common tax base for multinationals – again

LONDON (Reuters) – Four years after failing in an initial attempt at common company tax rules across Europe, the EU is set to have a second go as it tries to tackle the low-tax arrangements of some states that have benefited the likes of Amazon, Starbucks and Apple.

The EU’s executive European Commission is due on Wednesday to set out plans for a so-called common consolidated corporate tax base (CCCTB), after its previous attempt met member state opposition to what many saw as a first step to harmonizing tax rates, still regarded as a sovereign issue.

Jun 16, 2015

EU regulators stick to their guns over broker commission rule

LONDON, June 16 (Reuters) – Stock market research used by
asset managers must be paid for separately and not bundled into
broker commission, European Union regulators said on Tuesday in
the face of pushback from some lawmakers.

A new EU law governing financial transactions comes into
effect in 2017 and the European Commission and the European
Securities and Markets Authority (ESMA) are working on how it
will be applied in practice.

Jun 16, 2015

Euro zone banks body in ‘close contact’ with Greek counterparts

LONDON (Reuters) – The euro zone’s body for dealing with failing banks said on Tuesday it was in close contact with Greek regulators as the country’s banks face tough times.

“Greek banks are living in a challenging economic environment,”, Elke Koenig, chairman of the Single Resolution Board (SRB), told the European Parliament.

Jun 15, 2015

Britain set to win exemption from EU “too big to fail” banks reform -sources

LONDON, June 15 (Reuters) – Britain looks set to be exempt
from a European Union law that aims to end “too big to fail”
banks by reining in trading risks, diplomatic sources said on

Latvia, which currently holds the EU presidency, is due to
present a revised draft law to EU states’ ambassadors on
Wednesday. If it wins their support it would then be submitted
to finance ministers on Friday for endorsement, three sources
familiar with the talks said.

Jun 15, 2015

Trade bodies urge regulators to sort out derivatives reporting

LONDON (Reuters) – A wide range of market participants called on Monday for regulators to end confusion over derivatives trades reporting, which was brought in to help avert another financial crisis.

The Group of 20 economies called in 2009 for off-exchange swap trades to be reported to create a snapshot of who is exposed and to spot destabilizing risks early. New reporting requirements came in at the start of 2014.

Jun 11, 2015

Competitiveness concerns limit ambition in UK’s fair markets review

LONDON, June 11 (Reuters) – To what extent can a $5 trillion
a day market be fair and transparent when a third of the
trading is done by just two banks?

That’s a question critics say went unasked and therefore
unanswered in Britain’s review of fixed income, currency and
commodity (FICC) markets, aimed at learning from the interest
and foreign exchange rate-rigging scandals that have cost banks
billions of pounds in fines.

Jun 10, 2015

UK clamps down on markets after trader scandals

LONDON, June 10 (Reuters) – Britain announced plans to clamp
down on abuse in financial markets on Wednesday after a string
of scandals that sullied the reputation of the financial system
and have so far cost banks $19 billion in fines.

Under the proposals, criminal penalties currently in place
for insider trading in shares would be extended to fixed-income,
currency and commodity (FICC) markets with jail sentences for
offenders lengthened to up to 10 years.

Jun 10, 2015

Regulators see slow progress on who pays for failed clearing house

LONDON (Reuters) – Global regulators have yet to agree on who would pay the trillions of dollars that would be needed to bail out any failed clearing house for derivatives, a senior European Commission official said on Friday.

While policymakers don’t want taxpayers to rescue clearers, central banks like the Bank of England and European Central Bank have said they would offer backstops to clearing houses in emergencies.

    • About Huw

      "Huw is based in London and covers European regulatory issues and global rulemaking bodies such as the G20, Financial Stability Board, IOSCO, IASB and the Basel Committee. He has covered EU regulation in Brussels, the emergence pan-European stock markets, and has also been a Wall Street reporter in New York."
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