Regulation Correspondent, Europe
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Jan 27, 2015

EU says near deal with Washington on derivatives rules

LONDON (Reuters) – The European Union and the United States are poised to accept each other’s rules on financial derivatives trading in a bid to prevent a global market that supports economic growth from fragmenting, a senior EU official said on Tuesday.

The two sides are introducing rules to make derivatives such as credit default swaps more transparent after their opacity played a key role in exacerbating the 2007-09 financial crisis.

Jan 27, 2015

UK markets watchdog, quizzed on approach, says doesn’t ‘shoot first’

LONDON, Jan 27 (Reuters) – Britain’s financial markets
watchdog does not “shoot first and ask questions later”, its
head said on Tuesday, responding to questions from lawmakers
over its mishandling last March of the announcement of an
insurance market review.

Financial Conduct Authority (FCA) chief executive Martin
Wheatley said he now regretted using that phrase in 2012 to
describe the way the FCA, which was launched in April 2013,
would approach its brief.

Jan 27, 2015

Exclusive: EU aims to complete capital markets union by 2019 – document

LONDON (Reuters) – The European Union will put in place its “capital markets union” by 2019, starting with quick wins like encouraging direct investment in businesses, an EU document seen by Reuters showed.

The document, co-written by EU financial services chief Jonathan Hill, sets out a timetable for the first time on a core policy plank of the European Commission to help revive the bloc’s flagging economy.

Jan 23, 2015

Global bank watchdog to review rule on zero-risk weighting for sovereign debt

LONDON, Jan 23 (Reuters) – Global banking supervisors are
reviewing a rule that allows banks to hold little or no capital
against risky sovereign debt held on their books.

The so-called zero-risk weighting rule was heavily
criticised during the euro zone debt crisis when several
countries in the single currency area had to be bailed out.

Jan 23, 2015

Bank of England says lenders must do more to shore up cyber defences

LONDON, Jan 23 (Reuters) – Britain’s banks must do more to
protect themselves and the wider financial system from growing
and evolving cyber crime, the Bank of England said on Friday.

Worried by the increasing rate of attacks on banks by
Internet hacks, the BoE surveyed 36 financial firms and banks in
Britain and found no immediate critical shortcomings in their

Jan 22, 2015

BoE says UK insurer capital won’t rise under EU rules

LONDON, Jan 22 (Reuters) – European Union rules from 2016 to
keep insurance companies stable will not be an excuse for
regulators to ramp up capital requirements for insurers in
Britain, a senior Bank of England official said on Thursday.

The so-called Solvency II rules aim to ensure insurers such
as Britain’s Prudential and Aviva hold enough
capital to honour policyholder commitments even when markets
turn sour.

Jan 21, 2015

EU capital markets plan does not need a super-regulator: official

LONDON (Reuters) – The European Union’s plan to build a capital market union (CMU) will not include a super-regulator for markets in the same way the European Central bank now supervises top euro zone lenders,

a senior EU official said on Wednesday.

The comment will assuage concerns in Britain, the bloc’s biggest securities market, that a push by Brussels for a new, more powerful EU regulator to oversee the City of London financial sector would stoke anti-EU sentiment ahead of a general election in May.

Jan 21, 2015

Bank-style regulation offered as temporary fix for money market funds

LONDON (Reuters) – Bank-style regulation of money market funds (MMFs) has been proposed as a temporary compromise as draft European Union rules for the trillion euro ($1.2 trillion) sector face the prospect of being blocked for a second time by European lawmakers.

The rules proposed by the European Commission in Sept. 2013 aim to increase transparency and stability for MMFs, which are used by companies as an interest-earning cash deposit facility, but they have created deep splits among European Parliament members.

Jan 20, 2015

BoE’s Cunliffe cautiously welcomes EU capital markets plan

LONDON (Reuters) – The European Union’s plans to build a capital markets union (CMU) to increase funding for the economy will take years and needs careful handling, Bank of England Deputy Governor Jon Cunliffe said on Tuesday.

The CMU is the vehicle the EU’s executive European Commission hopes will increase market-based funding for companies and wean the 28-country bloc off its heavy reliance on banks.

Jan 20, 2015

Deep splits among EU lawmakers over shareholder rights reforms

LONDON, Jan 20 (Reuters) – European Union lawmakers are
deeply divided over plans aimed at encouraging more long-term
investment in the bloc’s companies, fuelling uncertainty about
what will be decided and when.

The European Commission has drafted revisions to the EU’s
shareholder rights law in a bid to promote a long-term approach
among investors that would put companies on a more stable

    • 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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