Regulation Correspondent, Europe
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May 6, 2015

U.S., EU officials clash over derivatives rules

By Huw Jones

(Reuters) – U.S. and European Union regulators clashed on
Wednesday over how to provide solid financial backing for the
world’s $630 trillion derivatives market and also avoid
duplication of rules that would be costly for banks and other

The two sides are working on regulations to make derivatives
less vulnerable to market shocks like the 2008 financial crisis,
but differences over the amount of money needed for margins or
collateral to back trades threaten to fragment the market, which
is largely traded in New York and London.

May 5, 2015

EU regulators put pressure on banks to revamp business models

LONDON, May 5 (Reuters) – Some banks must change their
business models to make themselves more sustainably profitable
in a era of low interest rates and tougher regulation, European
Union regulators said on Tuesday.

The bloc’s banking, insurance and markets watchdogs
published a joint update on risks to financial stability that
supervisors across the 28-country EU will be required to

Apr 28, 2015

Hong Kong move offers few clear benefits for HSBC

HONG KONG/LONDON, April 28 (Reuters) – The regulatory case
for HSBC to shift its head office from London to Hong Kong is
not clear-cut and the huge bureaucratic upheaval such a move
would involve may outweigh other advantages, lawyers and
analysts say.

Hong Kong’s regulators could impose a string of conditions
on the bank, while authorities in Britain and elsewhere might
also insist on onerous requirements before signing off on a
change of domicile. These could include extra guarantees on how
HSBC could be rescued without burdening their taxpayers.

Apr 24, 2015

Swiss expect deal with EU over clearing house

LONDON, April 24 (Reuters) – The European Union is expected
to give the green light for Switzerland’s securities clearing
house to keep operating inside the 28-country bloc, a senior
Swiss markets official said on Friday.

Without EU agreement that Swiss financial rules are equally
strict as the bloc’s own standards, customers using the London
Stock Exchange and other platforms across Europe could face
higher costs.

Apr 24, 2015

EU to scrutinize global accounting rules more closely

LONDON (Reuters) – The European Union will play an active role in a review of the accounting principles which underpin the way books are checked for companies around the world, France’s top accounting standards official has said.

Listed firms in the 28-nation EU must use book-keeping rules from the International Accounting Standards Board (IASB), which is reviewing the concepts underpinning its rules.

Apr 23, 2015

‘A low fix today old bean’: Deutsche’s casual requests to rig the market

LONDON (Reuters) – Deutsche Bank traders sent casual messages to colleagues politely asking them to rig global interest rate benchmarks, as a six-year criminal campaign of fraud became routine practice at Germany’s biggest bank, British regulators said on Thursday.

Deutsche (DBKGn.DE: Quote, Profile, Research, Stock Buzz) was fined $2.5 billion by British and U.S. authorities and its UK subsidiary admitted criminal wire fraud on Thursday for manipulating interest rate benchmarks used to price trillions of dollars worth of global securities.

Apr 22, 2015

EU markets watchdog to look deeper into digital currency investments

LONDON (Reuters) – The European Union’s markets watchdog is examining trading investments based on digital currency systems like bitcoin, saying it is unclear whether ownership is legally enforceable.

The European Securities and Markets Authority (ESMA) said the databases or “block chains” which record every transaction ever conducted in such cryptocurrencies were already being used to issue and trade some securities, bypassing regulated stock exchanges and central securities depositories.

Apr 22, 2015

UK watchdog fines BoA’s Merrill Lynch $20 million for reporting failures

LONDON (Reuters) – Britain’s markets regulator has fined Bank of America Merrill Lynch a record 13.2 million pounds ($20 million) for failing to report transactions properly over seven years.

The Financial Conduct Authority (FCA) said on Wednesday that Bank of America’s Merrill Lynch International arm incorrectly reported 35 million transactions and failed to report another 121,387 transactions between November 2007 and November 2014.

Apr 21, 2015

EU mounts fresh bid to end U.S. re-insurance collateral rule

LONDON, April 21 (Reuters) – The European Union will mount a
fresh bid to persuade the United States to free up the billions
of euros in collateral it requires foreign re-insurers to set
aside against policies.

EU states agreed on Tuesday to give the bloc’s executive
European Commission a mandate to negotiate a regulatory pact
with the United States.

Apr 21, 2015

Basel watchdog curbs bank capital discretion for supervisors

LONDON (Reuters) – Global regulators have jettisoned a string of national “waivers” from bank capital rules to help restore credibility in benchmark ratios published by lenders.

Regulators have found wide variations in the amount of capital banks hold against a similar set of loans, denting investor confidence in published capital ratios and hit valuations in the sector.

    • 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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