Regulation Correspondent, Europe
Huw's Feed
Mar 24, 2015

Fed’s Bullard warns of ‘violent’ reaction if markets misjudge rate path

LONDON (Reuters) – Unless investors start believing that U.S. interest rates are on the way up there could be a potentially extreme market reaction when they actually do rise, Federal Reserve policymaker James Bullard said on Tuesday.

Bullard said a first rate hike “sometime in the summer” would still leave monetary policy extremely accommodative, and that market expectations should be better aligned with those of the Fed considering the current “boom time” for the U.S. economy.

Mar 24, 2015

Leaving EU would be ‘disastrous’ for Britain -Standard Life chairman

LONDON, March 24 (Reuters) – Leaving the European Union
would be disastrous for Britain and harm its economy, Standard
Life Chairman Gerry Grimstone said on Tuesday.

“It would be disastrous for London and the UK if the UK were
to leave the single market,” Grimstone told a conference on how
to maintain Britain’s competitiveness as a financial centre.
Standard Life is Britain’s fourth-biggest insurance company.

Mar 19, 2015

New UK payments watchdog tells banks to make changes this year

LONDON (Reuters) – Britain’s newest and most powerful financial regulator has pledged to introduce “meaningful” change this year to help new banks steal market share from the “Big Five” lenders who dominate in commercial and retail banking.

The Payment Systems Regulator (PSR) will be formally launched on April 1 and was specifically created to shake up the arcane financial plumbing that handles 75 trillion pounds ($110 trillion) of money transfers annually, from credit cards to shop payments and cash machines.

Mar 13, 2015

BoE tells markets to ‘take heed’ and prepare for potential shocks

LONDON (Reuters) – The Bank of England told markets on Friday to “take heed” as the “short sharp shocks” seen in markets over recent months could happen more frequently.

Chris Salmon, the Bank’s executive director for markets, said two incidents have highlighted how volatility can suddenly increase and liquidity drop.

Mar 12, 2015

EU watchdog sees mandatory rate swaps clearing later in 2015

EDINBURGH/LONDON, March 12 (Reuters) – The European Union is
expected to make clearing of interest rate swaps mandatory from
later this year, its securities market watchdog said on
Thursday.

The 28-country bloc is rolling out rules to make derivatives
safer and more transparent after their opacity exacerbated the
2007-09 financial crisis.

Mar 12, 2015

FCA wants to ease bank account switching

LONDON (Reuters) – Allowing customers to take their bank account number with them would encourage more Britons to switch to a rival lender, Britain’s financial regulator said on Thursday.

Such flexibility has long been a feature of the mobile phone market where customers keep the same telephone number when they shop around between rival providers.

Mar 12, 2015

UK watchdog wants to ease bank account switching

LONDON, March 12 (Reuters) – Allowing customers to take
their bank account number with them would encourage more Britons
to switch to a rival lender, Britain’s financial regulator said
on Thursday.

Such flexibility has long been a feature of the mobile phone
market where customers keep the same telephone number when they
shop around between rival providers.

Mar 12, 2015

London to host ‘war game’ to test EU capital markets plan

LONDON (Reuters) – European Union plans to lift flagging growth by raising more funds on markets will be tested in a “war game” next week to identify pitfalls and help keep Britain on board the EU train.

Brussels has outlined steps for a “capital markets union” (CMU) to tap stock, bond and other markets more effectively for plugging funding gaps left by retrenching banks.

Mar 11, 2015

Britain’s banking shake-up will take at least five years to bear fruit: regulator

LONDON (Reuters) – It will take another five years or more to make real inroads into the dominance of Britain’s five biggest banks, a senior Bank of England official said on Wednesday.

Two years ago the government and regulators made it easier for new entrants to set up shop in attempt to loosen the chokehold of Lloyds, Barclays, HSBC, Royal Bank of Scotland and Santander UK, which provide about 85 percent of current accounts in Britain.

Mar 11, 2015

EU parliament report casts doubt over bank trading curbs

LONDON (Reuters) – Rules forcing banks to isolate risky trading activities must be fully evaluated to gauge their impact on economic growth and the ability of banks to bear the extra costs, a study by the European Parliament said on Wednesday.

The EU assembly and member states are trying to find consensus on a draft EU law that proposes banning proprietary trading at banks, in which they take bets in financial markets with their own money.

    • 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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