Regulation Correspondent, Europe
Huw's Feed
Jul 8, 2015

EU banks watchdog says Greek contagion limited so far, remains vigilant

LONDON (Reuters) – Markets are coping well with uncertainty over Greece’s future in the euro zone, with little sign so far of contagion that would undermine wider European Union financial stability, the bloc’s banking regulator said on Wednesday.

Euro zone members have given Greece until the end of the week to come up with a proposal for sweeping reforms in return for loans that will keep the country from crashing out of the euro.

Jul 7, 2015

Industry coalition plans swaps hub to resolve margin disputes

LONDON (Reuters) – A broad financial industry coalition is working to form a market hub to increase the efficiency of derivatives contract trading and avoid punitive capital charges on disputed margins.

The plans are in response to new rules that will take effect in September 2016 and will require far more collateral, known as margin, to cover swaps contracts that have not been cleared or passed through a third-party backed by a default fund.

Jul 7, 2015

UK proposes tighter rules for financial market traders

LONDON, July 7 (Reuters) – Traders who take bets on market
moves should have to comply with Britain’s tougher financial
rules on individual accountability, regulators proposed on
Tuesday.

The Financial Conduct Authority (FCA) said it was proposing
that a range of people working on wholesale markets should be
covered by new conduct rules finalised for bankers on Tuesday.

Jul 7, 2015

UK watchdog to investigate conduct at RSA’s Irish arm

LONDON, July 7 (Reuters) – Britain’s accounting watchdog
said it would investigate the conduct of individuals who worked
for RSA Insurance Ireland in the run-up to its bail-out by
British parent RSA.

The Financial Reporting Council (FRC) said the investigation
was related to “financial irregularities” at the Irish business.
It did not identify the individuals or say if they still worked
at the business.

Jul 1, 2015

Global regulators propose tighter credit risk rules for banks

LONDON (Reuters) – Global banking regulators have proposed a more comprehensive set of rules for banks to set aside capital to cover losses from their exposures to other lenders and limit fallout in a crisis.

During the financial crisis some banks suffered big losses on their derivatives contracts due to weaker creditworthiness at banks on the other side of their trades.

Jul 1, 2015

Bank of England delves deeper into market illiquidity conundrum

LONDON, July 1 (Reuters) – The Bank of England’s risk
watchdog will extend its focus beyond making banks more stable
to look at the lack of liquidity in fixed-income markets, which
are now braced for more volatility as bonds price in eventual
interest rate rises.

The Bank’s Financial Policy Committee (FPC) said in its
twice-yearly report on Wednesday that some markets had become
less liquid to cope with heavy sell-offs, but the reasons for
this were “not yet well understood”.

Jul 1, 2015

Bank of England says primed for action over Greek crisis

LONDON, July 1 (Reuters) – The Bank of England said on
Wednesday it stood ready to take any action required in response
to Greece’s worsening debt crisis, which could trigger wider
problems on financial markets.

Greece on Tuesday became the first advanced economy to
default on an International Monetary Fund loan after the
government in Athens broke off talks with its creditors and shut
down banks.

Jun 29, 2015

‘Brexit’ would be disaster for UK financial sector – industry group

LONDON (Reuters) – A British exit from the European Union would be disastrous for the UK financial industry and could prompt companies to leave the country, the sector’s main lobby group said on Tuesday.

TheCityUK also said the British government should hold the referendum on whether to leave the bloc next year, rather than wait until 2017, so companies who are drawing up contingency plans could make investment decisions as early as possible.

Jun 26, 2015

EU banking watchdog recommends cutting capital charges on pooled debt

LONDON, June 26 (Reuters) – European Union banking
regulators have proposed cutting capital charges for high
quallity securitised debt by a quarter in a bid to kick-start
the market and help fund economic growth.

The market was tarnised in 2007, when some securitisd debt
based on U.S. home loans turned sour, helping to sow the seeds
of a global financial crisis.

Jun 25, 2015

EU capital markets plan must protect investors better – UK watchdog

LONDON, June 25 (Reuters) – The European Union’s plan for a
unified capital market needs more work to protect investors from
losses if it is to provide the economic boost policymakers’ are
hoping for, a top British regulator said on Thursday.

Martin Wheatley, chief executive of the Financial Conduct
Authority, said the planned Capital Markets Union (CMU) was a
laudable aim, but much would hinge on implementation.

    • 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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