LONDON (Reuters) – Failure to thrash out a common supervision of the $640 trillion global financial derivatives industry will split markets and bump up costs for end users, a top regulator said on Monday.
Banks who trade interest rate swaps, credit default swaps and other derivatives are looking to the United States and the European Union to harmonize their approach to new rules aimed at making markets more transparent.
LONDON (Reuters) – The Bank of England wants Britain’s banks to be exempted from a European Union health check next year on the grounds that it will be conducting its own rigorous exam.
The so-called stress tests are carried out by the EU’s banking watchdog the European Banking Authority (EBA) every year, as an ongoing measure to restore market confidence in EU banks after the 2007-09 financial crisis and subsequent euro zone debt crisis.
LONDON, Dec 4 (Reuters) – Negotiations on a European Union
draft law forcing companies to switch accountants about every 10
years are on hold due to disagreements over other planned curbs
on auditors, an EU lawmaker said on Wednesday.
The measure was prompted by the 2007-09 financial crisis
during which taxpayers had to rescue banks that had been given a
clean bill of health by auditors months earlier.
LONDON (Reuters) – The proposed tax on financial transactions in 11 European Union countries complies with EU and international laws, the bloc’s executive said, hoping to revive the flagging project.
The tax on stock, bond and derivatives trades has been proposed as a way of raising about 35 billion euros a year from banks starting in 2014 to claw back the taxpayer aid they received in the financial crisis.
LONDON (Reuters) – Negotiations over sweeping changes to European Union securities market rules enter what may be the final stretch on Wednesday with several key elements already agreed.
The bloc’s Markets in Financial Instruments Directive or MiFID is being updated to reflect rapid advances in trading technology and apply lessons from the 2007-09 financial crisis to stock, bond and derivatives markets.
LONDON (Reuters) – Global banking regulators are expected to ease a new capital rule due in 2018 to rein in risky balance sheets after U.S. complaints, a European regulatory source said on Tuesday.
The Basel Committee on Banking Supervision published a proposal in June to flesh out a leverage ratio that banks will have to introduce in January 2018.
LONDON, Dec 3 (Reuters) – An accounting rule forcing banks
to set aside capital far earlier for troubled loans will be
completed next month and start in 2017, a global standard setter
said on Tuesday.
Leaders of 20 major economies (G20) called for the new rule
in 2008 at the height of the financial crisis when taxpayers had
to bail out undercapitalised banks.
LONDON (Reuters) – The “Big Three” credit rating agencies that score European Union government debt could be fined after failing to fix poor practices from the past, the sector’s regulator said on Monday.
Credit ratings are a key part of the financial system because investors use them to judge how likely they are to get their money back. But the financial crisis led to unease that the market is relying on them too much.
LONDON (Reuters) – Britain’s banking regulator has relaxed a new rule determining the quality of assets banks must hold to cover risks from pension liabilities.
The Bank of England’s Prudential Regulation Authority (PRA) had proposed that all the extra capital which comes on top of mandatory minimum buffers, should eventually be in the most expensive form, such as shares or retained earnings.
LONDON, Nov 29 (Reuters) – Global accountant BDO predicts
rapid consolidation in the sector due to pressure on fees,
regulatory change and big investment costs, that will leave only
a couple of mid-sized firms.
“Within the next five years, we anticipate that the global
consolidation of our profession will gather pace, leaving only
two or three substantial mid-tier networks globally,” BDO Chief
Executive Martin van Roekel told Reuters.