BIS Releases Quarterly Review
The Bank for International Settlements released its quarterly review for September 2014. The review looks at international financial market developments and trends relating to the banking, asset management and residential property sectors.
Quarterly Review | Press Release
FSB Holds Meeting on Financial Reform
The Financial Stability Board held a meeting in Cairns, Australia to discuss vulnerabilities in the global financial system and policy goals for further financial reform. The FSB warned there are increasing signs of complacency about risks in financial markets, in part reflecting a search for yield amidst exceptionally accommodative monetary policies.
FSB Releases Report to G20 on Financial Regulation and Long-Term Financing
The Financial Stability Board released an update on financial regulatory factors affecting the supply of long-term investment finance. In February 2013, the FSB provided an initial report to G20 Finance Ministers and Central Bank Governors which identified Basel III, over-the-counter (OTC) derivatives market reforms, and the regulatory and accounting framework for different types of institutional investors as reforms that may affect the provision of long-term investment finance. In August 2013, the FSB provided an update to G20 Ministers and Governors and outlined next steps in the work.
Update | Press Release | Reports on Deference Abilities of Individual Jurisdictions
FSB Releases Report to G20 and Central Banks on Deferring to Each Other’s OTC Derivatives Market Regulatory Regimes
The Financial Stability Board released a report on jurisdictions’ ability to defer to each other’s OTC derivatives regulatory regimes. The report states that deference to another jurisdiction is an important tool for addressing some of the issues arising from differences in regulatory reforms.
Report | Press Release
FSB Publishes Feasibility Study on Approaches to Aggregate OTC Derivates Data
The Financial Stability Board published a feasibility study of the various options for a mechanism to produce and share globally-aggregated OTC derivatives data, taking into account legal technical issues and the aggregated trade repository data that authorities need to fulfill their mandates. The report compares three basic options: 1) a physically centralized aggregation mechanism; 2) a logically centralized aggregation mechanism; and 3) the collection of raw data from individual databases by individual authorities that that then aggregate data within their own systems. The r eport finds that aggregation Options 1 and 2 are highly preferable to Option 3.
Study | Press Release
OTC Derivatives Regulators Issue Report to the G20
The Over-the-Counter (OTC) Derivatives Regulators Group (ODRG), which is made up of authorities with responsibility for the regulation of OTC derivatives markets in Australia, Brazil, the European Union, Hong Kong, Japan, Ontario, Quebec, Singapore, Switzerland, and the United States, issued a report today that provides an update to the G20 on further progress in resolving OTC derivatives cross-border implementation issues and identifies a cross-border issue that may call for legislative change.
Report | Press Release
IMF Releases Working Paper on Bank Capital Regulation
The International Monetary Fund released a working paper entitled "Reconsidering Bank Capital Regulation: A New Combination of Rules, Regulators, and Market Discipline." The paper states that shortcomings remain in bank capital standards, including the rules for setting capital requirements need to be simpler, and resolution should be an essential part of the capital requirement framework.
IMF Releases Working Paper on Loan Loss Provisioning Under IFRS
The International Monetary Fund released a working paper entitled "Supervisory Roles in Loan Loss Provisioning in Countries Implementing IFRS." The paper discusses the different accounting and regulatory approaches in loan loss provisioning, and the challenges supervisors face when there are different perspectives and lack of guidance from IFRS. It then suggests actions that supervisors can take to help banks meet regulatory requirements and comply with accounting principles.
IMF Releases Financial Access Survey
The International Monetary Fund released its fifth annual Financial Access Survey. The survey provides geographic and demographic data worldwide, offering a strong quantitative underpinning to the theoretical literature linking financial inclusion and economic growth.
Survey | Press Release
IOSCO Releases Draft Consultation on Risk Mitigation Standards for Uncleared Derivatives
The International Organization of Securities Commissions released a consultation report on risk mitigation standards for non-centrally cleared OTC derivatives. The report proposed nine standards aimed at mitigating risks in the wake of the global financial crisis. The standards were developed in consultation with the Basel Committee on Banking Supervision and the Committee on Payments and Market Infrastructures. Comments are due by October 17, 2014.
Consultation Report | Press Release
BoE Conference on Monetary and Financial Law
The Bank of England (BoE) has published its Quarterly Bulletin 2014 Q3 which includes a report on its conference on monetary and financial law which dealt with: taking stock of the international regulatory reform agenda; divergent approaches in regulatory law (centralisation and diversity); resolution as the fourth Pillar of Basel III; and alternative currencies, payment systems and finance providers.
European Commission Nominees to Appear Before European Parliament
Following the approval of the Commission President Juncker by the European Parliament in a vote on 15 July 2014, the candidate EU Commissioners, as presented by President Jean-Claude Juncker, will appear in hearings before parliamentary committees from 29 September to 7 October 2014. The European Parliament is set to vote on whether or not to approve the full Commission on 22 October 2014, so that the new Commission can to start work on 1 November 2104.
EIOPA Issues Annual Report Executive Summary
The European Insurance and Occupational Pensions Authority issued its 2013 Annual Report Executive Summary. The Annual Report 2013 sets out the Authority’s main achievements of meeting its strategic objectives of: enhanced consumer protection; the development of sound regulation; improved supervision; and timely identification and management of risks to financial stability.
ESMA Releases Updated List of CCPs Under EMIR
The European Securities and Markets Authority released an updated list of central counterparties authorized to offer services and activities in the European Union in accordance with the European Markets Infrastructure Regulation.
List | Public Register for the Clearing Obligation | Press Release
ESMA Revised Technical Advice on an EU Creditworthiness Assessment for Sovereign Debt
The European Securities and Markets Authority (ESMA) has published revised technical advice on the appropriateness of the development of a European creditworthiness assessment for sovereign debt. The technical advice has been revised to reflect amended figures for the outstanding sovereign ratings in the EU and two re-classifications of the solicitation status of EU sovereign ratings.
FCA Letter to House of Lords Committee on Regulation of High-Frequency Trading
Martin Wheatley, Chief Executive of the FCA, has written to the Economic Affairs Committee of the House of Lords in response to a request by the Committee for the FCA’s views on high-frequency trading (HFT). The Committee had previously received evidence on HFT from Brad Katsuyama, president and chief executive of the US equity trading venue, IEX.
FSTB and HKMA Release Consultation on Enhancements to Deposit Protection Scheme
The Financial Services and the Treasury Bureau (FSTB) and the Hong Kong Monetary Authority (HKMA) jointly issued a consultation paper on the proposed enhancements to the Deposit Protection Scheme (DPS). The DPS is a statutory scheme established to protect depositors and reduce the risks of bank runs during a banking crisis. It is operated by the Hong Kong Deposit Protection Board.
Michel Barnier Speaks on Global Regulatory Cooperation
European Commissioner for Internal Market and Services Michel Barnier delivered a speech entitled "The Challenge of Implementing Market Regulations Consistently at the Global Level" at the Eurofi Financial Forum in Milan, Italy. Barnier listed five key areas of challenge to cross-border application of rules derivatives: bank resolution, securitization, financial reporting standards, and convergent insurance regulation.
Wayne Byres Delivers Speech on the Global Regulatory Agenda
Wayne Byres, Chairman of the Australian Prudential Regulation Authority, delivered a speech to the RMA Australia CRO Forum in Sydney titled “Perspectives on the Global Regulatory Agenda. Byres said three issues can have just as much an impact of the global banking sector as Basel III: 1) the role and reliability of internal models within the capital adequacy framework; 2) the need for additional loss-absorbing capacity; and 3) efforts to improve the governance and culture of financial institutions.