Regulation Correspondent, Europe
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Mar 20, 2014

UK watchdog fines and bans bond trader in first gilt rigging case

LONDON (Reuters) – Britain’s financial watchdog said on Thursday it had fined former Credit Suisse bond trader Mark Stevenson 662,700 pounds ($1.1 million), in its first enforcement action for manipulating the 7.2 trillion pound UK government bond market.

The Financial Conduct Authority (FCA) said it had also banned Stevenson, who has nearly 30 years’ experience, from the industry for ramping up the price of a bond in the hope of creaming off a bigger profit if the Bank of England bought it.

Mar 18, 2014

Exclusive: EU legal opinion opens door to Tobin tax on forex

LONDON (Reuters) – Deals from the multi-trillion euro a day foreign exchange market could in principle be included in a tax on financial transactions, a legal opinion from European Union lawyers seen by Reuters said.

While effectively ruling out the inclusion of the vast forex market from a transaction tax proposal now on the table, it leaves the door open for the sector to be included later on.

Mar 18, 2014

EU legal opinion opens door to Tobin tax on forex

LONDON, March 18 (Reuters) – Deals from the multi-trillion
euro a day foreign exchange market could in principle be
included in a tax on financial transactions, a legal opinion
from European Union lawyers seen by Reuters said.

While effectively ruling out the inclusion of the vast forex
market from a transaction tax proposal now on the table, it
leaves the door open for the sector to be included later on.

Mar 18, 2014

Bankers sidestepping bonus cap face regulator action – EU’s Barnier

LONDON, March 18 (Reuters) – Bankers who sidestep a cap on
their bonuses will face action from the European Union’s banking
regulator, the bloc’s financial services chief said on Tuesday
as he fought off calls to toughen up the measure.

The cap is one of the most high-profile rules approved by
the 28-country bloc following public anger over high pay at
banks, many of which were propped up by taxpayers in the 2007-09
financial crisis.

Mar 18, 2014

Nasdaq OMX first to win EU approval to clear derivatives

LONDON, March 18 (Reuters) – Nasdaq OMX has kicked
off Europe’s next phase in making financial derivatives safer by
becoming the first clearing house to be authorised under new
European Union rules.

Derivatives, such as credit default swaps, were at the heart
of the 2007-09 financial crisis and their opacity deepened the
woes of Lehman Brothers, the U.S. bank that collapsed in 2008.

Mar 17, 2014

BoE’s Cunliffe says big banks are still too big to fail

LONDON, March 17 (Reuters) – The world’s biggest banks still
could not be dismantled safely, more than five years after the
collapse of Lehman Brothers, the Bank of England’s deputy
governor for financial stability said on Monday.

International standard setters have made progress in
reforming banking rules since Lehman went under in September
2008, Jon Cunliffe, the deputy governor, told a Chatham House
financial conference. But the core task of ending
too-big-to-fail banks remains, he said.

Mar 17, 2014

Global regulators to intensify efforts to revive securitization

LONDON (Reuters) – Global regulators will intensify their efforts to revive a securitization market tarnished by the financial crisis and now seen by policymakers as a key source of funds for the economy, the head of an umbrella regulatory group told Reuters.

Securitization bundles loans into interest-bearing bonds to raise money that banks can use to fund themselves and lend to small companies.

Mar 13, 2014

Bankers behaving badly face 6-year bonus clawback by BoE

LONDON, March 13 (Reuters) – Misbehaving bankers and their
bosses will have to hand back bonuses up to six years after they
pocket them under a rule the Bank of England is proposing to
prevent excessive risk-taking.

The aim of the rule put out for consultation by the central
bank on Thursday is designed to stop bankers taking huge bets in
the knowledge that they could move jobs before any problems come
to light. It marks a toughening of current rules that allow only
for the cancellation or reduction of parts of bonuses that have
been awarded but not yet paid.

Mar 13, 2014

Bank of England proposes six-year clawback on bankers’ bonuses

LONDON (Reuters) – Misbehaving bankers and their bosses will have to hand back bonuses up to six years after they pocketed the cash under a proposed rule from the Bank of England to prevent excessive risk-taking.

The aim of the rule put out for consultation by the central bank on Thursday is designed to stop bankers taking huge bets in the knowledge that they could move jobs before any problems come to light and marks a toughening of current rules that allow only for the cancellation or reduction of parts of bonuses that have been awarded but not yet paid.

Mar 12, 2014

UK watchdog to review, cap payday loan rates

LONDON (Reuters) – Britain’s financial watchdog will review in April how payday lenders collect debts and impose a cap from early 2015 on the sky-high interest rates criticized by politicians and churches.

The Financial Conduct Authority said the review will be one of its first acts next month when it takes on supervision of about 50,000 consumer credit firms.

    • 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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