L-R: Mark Carney; Sheila Bair; Michel
Barnier; Mary Schapiro; Jamie Dimon; Charles Dallara
"I had a discussion with a very senior regulator recently
who told me: 'Look, I know we’ve gone too far too
fast on some of this and that we’ve made some
errors, but I’m afraid I don’t know
how to stop this process’.
Now that’s quite scary."
Volcker rule: special focus
Regulation: Sweden’s unfinished finish
The country’s financial regulators are playing
hardball on minimum regulatory capital requirements, mostly
because of mortgage risk weights. Analysts argue that the
Riksbank is using the wrong tool for the job and might even be
damaging the economy as a result.
FX swaps: Market players grapple with fragmentation
Market participants are relatively relaxed about the impact of
last year’s change to the US trading model,
relative to the dire warnings from the global trade association
for OTC derivatives, but global market fragmentation remains a
Banks join forces to confront due-diligence challenge
With various regulatory initiatives demanding that financial
institutions gather and disclose information relating to
customers, a number of firms have responded to what they see as
a market opportunity to develop customer-identity screening
services, with a single, industry-wide utility seen, by some,
as the end-goal.
OTC derivatives reform challenges regulators from South Africa
to Hong Kong
Over-the-counter (OTC) derivatives market reform outside the US
and Europe will be closely monitored by companies who use these
derivatives to manage foreign-currency earnings exchange-rate
Market braces for FSB’s 'scary’ TLAC
The November G20 meeting could see the capital requirements of
systemically important banks doubled.
Corporates look to make regulation pay
It is not common to hear about the positive side of financial
market regulation. But corporate treasurers are finding ways to
turn the new rules to their advantage.
Regulators seek to restore FX’s broken trust
The debate around how to strengthen the regulation of FX
markets continues to rage. Advocates highlight examples of
regulations that have benefited the markets in the long run,
while detractors warn of unintended consequences and cite their
own examples of risk-mitigating measures evolving naturally
within the industry.
Asia DCM bankers ready for Basel III bond rush
Basel III will trigger a wave of bond deals in Asia; China and
India to lead the way.
SEF report: The state of the global market
Euromoney Research Group presents a detailed report into the
swap execution facilities (SEFs) sector. The bespoke content
offers insight into the confusion over the adoption of these
rules and looks at the future opportunities for all market
Corporate treasurers find opportunity amid regulation
Squeezed budgets, tangled systems and regulations are still
holding back corporate treasurers as they search for ways to
make their operations easier and cost effective.
Banco Espírito Santo: Zero risk, zero sense
The Banco Espírito Santo saga is a sharp reminder, as
the ECB’s asset quality review moves towards its
conclusion, of how closely the fortunes of European banks and
sovereigns remain bound together.
Hungary: Banks count cost of FX loan legislation
Forced conversion planned for autumn; bill could top €4
billion, say analysts.
Departing O’Malia stresses SEF data
CFTC commissioner admits data collection 'poor’;
calls for better cross-border cooperation.
Rising compliance costs rupturing banks' trade finance
Collaboration between transaction banks and Swift is helping to
spread the burden and rocketing cost of compliance, but for
some banks' trade finance businesses, client relationships have
already been hit hard by the expense.
Gear up for Sepa 2.0
The extended deadline for Sepa is fast approaching and, despite
initial fears, corporates are set to meet it – but
this is the first step in creating an efficient single European
payments framework. Debate about Sepa 2.0 is now in full
Litigation costs for European banks to double
Credit Suisse estimates $104 billion exposure; exposed
banks’ share prices sell off.
reveal favoured regulatory fix
As the FX regulatory landscape gets revamped, data from the
Euromoney FX Survey 2014 shed light on what the market wants
when it comes to benchmark reform, including its views on
sticking with the current WM Company and Thomson Reuters
US and European regulators clash over cross-border
A CFTC official frustrates
European regulators at the IDX conference by suggesting futures
clearing should migrate to the US to avoid a conflict between
Dodd-Frank and EMIR.
Fall of self-regulated spot FX
Government plans to crack down on the UK’s
foreign-exchange market amid reports of mass manipulation could
see the demise of the London FX fix. Suggested reforms range
from a transparent auction-based pricing system to banning the
practice of last look.
Asia’s financial regulators: Asleep at the
Asia’s financial regulators need to wake up to the
need for rules that suit the region’s
More questions than answers in EU margin draft
Draft rules permit internal modelling; two sides to contract
unlikely to agree.
The ins and outs of eurozone regulation
Lithuania and its fellow Baltic republics are in an unusual
position when it comes to euro adoption. Whereas in the rest of
emerging Europe the majority of banks are outside the eurozone,
but owned by lenders within, in the Baltic states the situation
FX probe digs the dirt to clean up market structure
A high-profile investigation into market manipulation has
heralded increased scrutiny of FX trading practices and could
see major changes to the way the industry operates. But scratch
below the surface and the tide may be turning towards a
healthier market structure.
Banks' FX cash cow runs out of milk
Market rigging lawsuits, trader suspensions and a move to swap
execution facility trading are hurting banks’
ability to make money in foreign exchange, warn analysts.
AT1: Par call pitfalls
Lloyds LME highlights potential risks to investors of early
regulatory calls in the booming AT1 market.
US fires global subsidiarization starting gun
Foreign banks are facing up to the implications of new rules in
the US requiring them to hold capital onshore. But
subsidiarization is set to become a global phenomenon. Bankers
argue they will be hamstrung by trapped liquidity and capital.
Customers might lose out as well. What are the true costs of
ensuring national safety in a global banking system?
FX players lobby Brussels for spot FX
Key players in the global
foreign-exchange community are lobbying the European Commission
to widen the definition of spot FX and free up companies from
onerous reporting requirements, before a vital consultation on
the subject closes for comments in a fortnight.
Traders’ fury at frontloading fiasco
Swap traders are furious at what they describe as a "royal
regulatory cock up" as frontloading comes to the fore and they
struggle to price swaps, while Europe’s financial
regulator has yet to announce a solution despite crisis talks
earlier this month.
OTC derivative costs and compliance burden rockets
More than 200 of the world’s largest companies and
financial institutions have warned that regulation impacting
the multi-trillion dollar over-the-counter (OTC) derivatives
market has multiplied their administrative burden and pushed
hedging costs up to new highs.
ECB and Bank of England poised to call for Basel II capital
treatment for high-quality ABS
High-quality definition to be based on ECB eligibility, EIOPA
criteria, and might be set at "PCS-minus".
US regulators might surprise banks on supplementary leverage
While banks now expect US regulators to follow
Basel’s lead in relaxing the denominator of total
assets, the Fed still worries about dealer dependence on
short-term funding from SFTs and might demand a capital
US regulators tout new capital charges for big banks
The New York Fed published a call for self-insurance on the
capital account while Tarullo repeats the warning of further
risk-weighted charges aligned to dependence on unreliable
AT1: Investors fill banks’ capital begging
Overwhelming demand for a string of bank AT1 deals shows the
extent of investors’ desperation for yield as much
as their faith in the restored health of the banking sector. As
more new investors accept these deals, hopes grow that a
€150 billion AT1 market might emerge quickly now. But
terms have tightened far and fast and AT1 can be
Risk of regulatory par calls rises as AT1 market
Lloyds’ liability management exercise (LME)
highlights the potential risks to investors of early
More favourable capital treatment alone will not fix
Europe’s ABS problem
New origination to provide private-sector assets for QE will
only result from further regulatory clarity.
SEF teething problems frustrate FX market amid liquidity
The CFTC is close to finalizing long-awaited rules for FX
derivatives that will herald a seismic shift to trading these
instruments on SEFs – but those already trading on
SEFs are frustrated with teething problems and unintended
consequences, including illiquidity and extraterritoriality
Nigeria’s regulatory environment hostile to mobile
money – Safaricom CEO
Nigeria seems to be ripe for mobile money, but the concept has
yet to take off compared with Kenya, in part because of bank
lobbying. Bob Collymore, Safaricom’s CEO, tells
Euromoney why Nigeria is lagging behind.