Regulation Correspondent, Europe
Huw's Feed
Sep 25, 2015

BoE delves deeper into asset managers, uncertain market liquidity

LONDON, Sept 25 (Reuters) – The Bank of England is taking a
deeper look at whether some investment strategies and
computerised trading are increasing volatility in financial
markets and putting further strain on already uncertain
liquidity.

The Bank’s Financial Policy Committee (FPC), which monitors
the financial system for potentially destabilising risks, said
“disorderly” swings in markets, such as those on the New York
Stock Exchange in August, have so far been short-lived and
without systemic consequences.

Sep 25, 2015

Nationalizing a failed clearing house an option: EU document

LONDON (Reuters) – European Union governments could nationalize a failed clearing house to safeguard stability in the financial system, an EU document outlined on Friday.

The EU’s executive European Commission is due to publish a draft law on handling collapsing clearing houses.

Sep 25, 2015

BoE delves deeper into asset managers, “fragile” market liquidity

LONDON, Sept 25 (Reuters) – The Bank of England is taking a
deeper look at whether some investment strategies and
computerised trading are increasing volatility in markets and
putting further strain on already fragile liquidity.

The Bank’s Financial Policy Committee (FPC), which monitors
the financial system for potentially destabilising risks, said
“disorderly” swings in markets, such as those on the New York
Stock Exchange in August, have so far been short-lived and
without systemic consequences.

Sep 24, 2015

Global watchdog seeks deal on ending “too big to fail” banks

LONDON, Sept 24 (Reuters) – Global regulators meet in London
on Friday to agree a rule on stopping banks being “too big to
fail” by requiring them to hold enough equity capital and bonds
to avoid taxpayers being called on in a crisis.

The Financial Stability Board (FSB), chaired by Bank of
England Governor Mark Carney, wants the world’s biggest banks to
have enough funds to tap when in trouble.

Sep 23, 2015

Preview: Banks, asset managers await BoE findings on market liquidity

LONDON (Reuters) – Banks and asset managers will tune into
the Bank of England on Friday to see if a report on bond market
liquidity will vindicate calls to relax rules laid down after
the financial crisis.

The BoE’s Financial Policy Committee (FPC) has asked
regulators to study why liquidity in corporate and government
bonds has shrunk since the 2007-09 crisis. The period coincides
with tougher capital requirements for banks that buy and sell
debt.

Sep 23, 2015

Banks, asset managers await BoE findings on market liquidity

LONDON (Reuters) – Banks and asset managers will tune into the Bank of England on Friday to see if a report on bond market liquidity will vindicate calls to relax rules laid down after the financial crisis.

The BoE’s Financial Policy Committee (FPC) has asked regulators to study why liquidity in corporate and government bonds has shrunk since the 2007-09 crisis. The period coincides with tougher capital requirements for banks that buy and sell debt.

Sep 23, 2015

EU favors insurers, private equity in capital markets plan: document

LONDON (Reuters) – The trillions of euros held by insurers will be a core target for the European Union’s “capital markets union” plan to invest more in companies and infrastructure, an EU document showed on Wednesday.

The bloc’s financial services chief Jonathan Hill is due to publish his “action plan” on Sept. 30 for putting in place the basics of a capital markets union by 2019.

Sep 22, 2015

Germany, Belgium consider transaction tax impact on economy

LONDON, Sept 22 (Reuters) – Germany and several other euro
zone states that have pledged to tax financial transactions from
2017 want to curb the impact on savers and on how markets fund
the economy, documents showed on Tuesday.

Eleven euro zone countries are planning to introduce the
financial transaction tax (FTT) on stock, bond and derivatives
trades, but there are worries the move could crimp the ability
of markets to fund the economy.

Sep 22, 2015

No consensus over stopping clearers becoming ‘too big to fail’

LONDON (Reuters) – Banks and mutual funds have no way of comparing the health of clearing houses for derivatives just months before their use becomes mandatory in Europe, an industry conference heard on Tuesday.

The financial crisis prompted reform of the $630 trillion derivatives market, forcing many contracts in the United States to pass through a clearing house, with the European Union following suit next year with similar rules.

Sep 22, 2015

Industry warns over failure to reach EU-US deal on derivatives

LONDON, Sept 22 (Reuters) – Failure by European Union and
U.S. regulators to iron out differences in their derivatives
rules would prompt “catastrophic” attempts by market users to
pull out from American clearing houses, a senior industry
official has warned.

World leaders agreed in 2009 to increase transparency in the
market after the collapse of Lehman Brothers left regulators in
the dark over who was on the other side of vast chunks of the
failed U.S. bank’s derivatives transactions.

    • 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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