Regulation Correspondent, Europe
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Feb 12, 2014

EU executive sees personal savings used to plug long-term financing gap

LONDON, Feb 12 (Reuters) – The savings of the European
Union’s 500 million citizens could be used to fund long-term
investments to boost the economy and help plug the gap left by
banks since the financial crisis, an EU document says.

The EU is looking for ways to wean the 28-country bloc from
its heavy reliance on bank financing and find other means of
funding small companies, infrastructure projects and other

Feb 12, 2014

EU, United States iron out differences over derivatives trading

LONDON, Feb 12 (Reuters) – The European Commission and the
U.S. Commodity Futures Trading Commission said they have agreed
a common approach for swaps contracts so they can be traded on
electronic platforms to aid transparency and reduce risk.

World leaders called for the rules to shine a light on the
$700 trillion market for credit default swaps and interest swaps
found at the heart of the 2007-09 financial crisis.

Feb 11, 2014

Bank of England says no evidence it was told of forex manipulation

LONDON (Reuters) – The Bank of England has seen no evidence to back media allegations that it condoned or was aware of manipulation of reference rates in the foreign exchange market, it said on Tuesday.

The central bank discussed with top London currency dealers their process for setting foreign exchange benchmark rates at a meeting in April 2012, more than a year before a global investigation into alleged manipulation.

Feb 10, 2014

EU lawmakers propose pay transparency for money market funds

LONDON, Feb 10 (Reuters) – Managers of the European Union’s
trillion-euro money market funds, which give access to
short-term finance at low interest rates, will need to show
their pay packets do not encourage too much risk-taking under a
proposal from the bloc’s lawmakers.

It marks the latest EU attempt to extend pay rules for
bankers to other parts of the financial sector in a bid to avoid
the lure of a big bonus encouraging people to take on more risk.

Feb 10, 2014

EU rules to light up derivatives markets set for shaky start

LONDON, Feb 10 (Reuters) – New rules coming into force in
Europe this week to shine more light on the $700 trillion
derivatives markets will take years to produce a clearer picture
of these complex products which were at the heart of the
financial crisis.

When Lehman Brothers collapsed in 2008 markets were in the
dark over a tangle of derivatives on the U.S. investment bank’s
books. Financial markets froze because of uncertainty about who
was exposed to Lehman’s derivatives, such as credit default
swaps or interest rate swaps. U.S. insurer AIG also ran
up big losses linked to derivatives.

Feb 7, 2014

EU to rule on controversial British nuclear deal this year

LONDON/PARIS, Feb 7 (Reuters) – European Union antitrust
chief Joaquin Almunia said on Friday Britain must clarify why
state aid is needed to build a 19 billion euro ($26 billion)
nuclear plant with French state-controlled utility EDF.

“We need the UK authorities’ cooperation. My intention is to
be able to adopt a final decision on this before the end of the
year,” he told reporters in London.

Feb 7, 2014

EU says Gazprom yet to satisfy its concerns over prices

LONDON, Feb 7 (Reuters) – Gazprom has not yet satisfied the
European Commission’s concerns over pricing and the European
Union’s executive body may still charge the state-controlled
Russian gas monopoly with antitrust abuses, the EU competition
chief said on Friday.

The world’s top gas producer and the supplier of a quarter
of Europe’s gas needs, has been under EU investigation since
September 2013 for suspected anti-competitive behaviour,
including overcharging customers and blocking rival suppliers.

Feb 6, 2014

EU asks Britain to explain new ‘allowances’ in bankers’ pay

LONDON/BRUSSELS (Reuters) – The European Commission has asked the Bank of England to explain how new allowances in British bankers’ pay comply with an EU bonus cap, an official at the bloc’s executive said, a new flashpoint of friction over the reach of financial control.

Under EU rules, from 2015 bonuses cannot be more than fixed salary, or double this amount with shareholder approval, and most of the bankers affected are based in London.

Feb 4, 2014

Bank of England’s Haldane calls for more global policy coordination

OXFORD, England, Feb 4 (Reuters) – Turmoil in some emerging
markets reflects a failure of advanced and developing economies
to learn from the financial crisis and coordinate policies more
effectively, a senior Bank of England official said on Tuesday.

Investors have been retreating rapidly from emerging markets
as the U.S. Federal Reserve unwinds an economic stimulus policy
that had made such high-yielding assets attractive, sending
currencies skidding and forcing policymakers to hike interest

Feb 4, 2014

FCA to review pay guidance for financial sector

LONDON (Reuters) – Tougher guidelines on financial sector pay are under consideration by the UK watchdog, though extending a cap on banker bonuses to the wider industry looks a step too far, a top regulator told UK MPs on Tuesday.

Under new European Union rules, banker bonuses can be no higher than an individual’s fixed salary, rising to double that level if shareholder approval is obtained.

    • 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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