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Latest on Regulation
Industry urges CFTC to take lead on CCP margin models
Advisory committee unable to agree steps on margin period of risk, model transparency
Italian job: the real UK stock trading heist
Italy has not been seen as a candidate to pick up business from the UK – until now
All roads lead to Bergamo: Euronext eyes new home for its tech
Market participants fear a “horrible” relocation project and more room for latency arbitrage
Latest
Quotes
In the original proposal of the net stable funding ratio, all that capital was getting stuck in those subsidiaries. Now, because of this break, that capital is basically released
Regulatory official at a global bank
If you ask someone, ‘do you want us to take into account ESG?’ – that’s kind of nudge theory there: they’ll say yes
Lucian Firth, Simmons & Simmons
With the right regulatory environment, the UK continues to be a very attractive place to invest, innovate and to build markets. We think that open access rules run contrary to that outcome
Stuart Williams, Ice Futures Europe
Editor's Choice
ECB grants post-Brexit reprieve on large exposures limit
Exemption for intra-group exposures to UK will be preserved pending a decision on equivalence
Big Figure
Who’s to blame?
EU regulators are fretting that banks are reluctant to eat into capital buffers during the Covid pandemic, for fear that they will breach thresholds that would prevent payments of dividends on equity and coupons on additional tier 1 bonds. But most banks have not tightened their loan underwriting standards, suggesting capital rules are not constraining balance sheet expansion.
Read the full articleDerivatives
Callable repack frenzy opens up new options market in Europe
Demand driven mainly by French life insurers looking for alternatives to low-yielding sovereign bonds
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Comment
Repair the leverage ratio, revive the repo market
ECB certificates: a ready-made euro safe asset
Our Take
A European watchdog with more bark than bite
Never mind the buffers: Covid reveals deeper flaws in Basel III