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Latest on Regulation
‘Improving’ Mifid post-trade transparency splits markets
Mooted changes to Europe’s transparency regime are dividing markets – largely along functional lines
EU’s Brexit clearing grab slow to lift off
Clearing members say clients aren’t transferring material volumes from LCH to Eurex rapidly
SA-CCR adoption may spur wider FX swaps clearing
With up to 90% lower exposures on offer, dealers say capital benefits could outweigh margin costs
Latest
Quotes
Regulators have waived or adjusted capital requirements, so banks are looking at how they are going to address immediate issues, rather than how they can get still more room by using synthetic transactions
Robert Bradbury, StormHarbour Securities
One important element in the amplification of liquidity pressure appears to have been the unwinding of large positions in interest rate markets, particularly US Treasuries, by very highly leveraged hedge funds
Jon Cunliffe, Bank of England
Because of government stimulus and credit accommodations, it is difficult to use models based on historical data to extrapolate the relationship between the unemployment rate and loan losses
Francisco Covas, Bank Policy Institute
Editor's Choice
Regulators and banks clash on FRTB capital impact study
Basel and EBA call out two banks for using “overly conservative” survey assumptions
Big Figure
Not now, buy-ins
The coronavirus pandemic increased market volatility and drove up settlement fails due to the operational challenges of remote working, intensifying fears that EU rules requiring mandatory buy-ins where trades fail could make market liquidity even worse.
Read the full article7 days in 60 seconds
Covid capital, SA-CCR and problems with post-Libor protocol
The week on Risk.net, July 4-10, 2020
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