| News on the global financial markets |  |
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- ESMA pushes common rulebooks across EU
Common rulebooks for banking, insurance and securities markets should extend across the EU, instead of only the euro zone, European Securities and Markets Authority Chairman Steven Maijoor said, noting that "in securities markets, we hardly ever talk about euro zone and not euro zone". Maijoor's remarks come as efforts to establish a banking union raise fears of divisions along national lines or between the euro zone and nations outside. The Wall Street Journal/Dow Jones Newswires
(20 Nov.)      
| Industry News | | |
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- French rating cut prompts EFSF to postpone euro offering
The European Financial Stability Facility had planned to issue a three-year euro benchmark bond this week but has put its plan on hold after Moody's Investors Service downgraded France's credit rating. "The timing of the EFSF three-year euro offering is currently subject to a technical issue related to EFSF's Deeds of Guarantee," Chief Financial Officer and Deputy CEO Christophe Frankel said. "EFSF will look to bring its new three-year euro benchmark offering once the issuer is able to satisfy the Deeds of Guarantee language." International Financing Review (free content)
(20 Nov.)
- Analysis: Libor manipulation evolved into common practice
By steps and stages, manipulation of the London Interbank Offered Rate to profit on derivatives had become standard practice by the mid-2000s, industry experts say. However, the tale of how the practice grew began in the 1990s, when CME Group's popular Eurodollar contract provided a forum for betting on interest rates. Reuters
(20 Nov.)
| Regulatory Roundup | | |
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- Basel III amendments could relax liquidity obligations
A long list of amendments could ease banks' compliance with global liquidity standards. The changes are under consideration by the Basel Committee on Banking Supervision. If all of the changes to the liquidity-coverage ratio are adopted, a shortfall in banks' buffer assets will decrease by 14%, a source said. Risk.net (subscription required)
(20 Nov.)
- Europe's 2013 bank stress tests will centre on Basel III
Next year will bring an assessment of European banks' progress in implementing Basel III capital rules. "We need to manage a shift of focus from a one-off recapitalisation effort to developing the path for full implementation of Basel III standards," said Andrea Enria, chairman of the European Banking Authority. "We are structuring the stress test of next year along these lines." Reuters
(20 Nov.)
- FSA chief expects tough rules to cut frequency of bank rescues
Taxpayer-funded bank rescues might never truly be a thing of the past, but stricter rules should greatly reduce their occurrence, UK Financial Services Authority Chairman Adair Turner said. "The honest truth is that if you believe you have forever completely destroyed the possibility of a taxpayer input, we're probably fooling ourselves," Turner told a parliamentary commission. "But if we are successful, we are reducing the periodicity of a taxpayer input from once every 50 years to once every 200 years." Bloomberg
(19 Nov.)
| Tech Trends | | |
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- Australia aims to curb computer trading
The Australian government rolled out measures to rein in automatic trading. Among the rules are so-called kill switches, pricing restrictions for dark-pool trading and stricter data reporting. The kill-switch measure is designed to protect investors from volatility that can stem from superfast, computer-driven transactions. Reuters
(20 Nov.), Financial Times (tiered subscription model)
(20 Nov.), The Wall Street Journal
(20 Nov.)
| Spotlight on China | | |
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- New bank rules coming on schedule in China
Tougher capital requirements for banks will be introduced on schedule in China, which doesn't plan to follow other countries in delaying implementation, said Wang Zhaoxing, vice chairman of the China Banking Regulatory Commission. "China has promised to anticipate the establishment of the global financial supervision system and adopt the international standards. ... It will be a Chinese version of capital criteria, tailored to suit Chinese banks' balance sheets, risk and business models," Wang said. China Daily (Beijing)
(20 Nov.)
| AFME News | | |
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- José Manuel Campa, former Spanish secretary of state for the economy, will present the keynote address at the AFME 4th Annual Spanish Funding Conference -- TUESDAY in Madrid
In 2009 and 2011, José Manuel Campa was the secretary of state for the economy in the Spanish Ministry of Economy and Finance. Campa has been a consultant in several global organisations, including the International Monetary Fund, the Inter-American Development Bank, the Bank for International Settlements and the European Commission. Campa is a professor of financial management and international economics at the University of Navarra's IESE Business School and is a member of the Liikanen group, which is evaluating structural reforms for Europe's banking policy. Delegates will hear his thoughts on the situation and plans for preparing for 2013 and beyond. In addition, key industry figures will debate the economic situation and the future for Spanish and European markets, including the role of securitisation and covered bonds in recovery of the European economy. A networking reception will follow the conference, providing excellent networking opportunities and giving attendees a chance to discuss key topics of the day with peers. See further programme information and register.
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