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Latest on Regulation
EU talks on prop firms leave door open to harsher pay rules
Final law could subject many firms to bonus cap, but even those that escape could struggle
BAML may rejoin China swaps market after US policy shift
Clearing exemption removes swaps deterrent as bank seeks to hedge growing China exposure
Brexit threatens UK-based banks’ corporate repo funding
UK banks and UK bases of global banks fear losing valuable source of NSFR cash
Latest
Quotes
Absent categorical guidance from the Treasury and regulatory bodies, Kyte Broking can only press ahead with plans that it feels will ensure continuity and retain flexibility
Michelle Zak, Kyte Broking
I was uneasy with single point of entry [resolution] from the beginning. I preferred that we focus on financial stability and what it would be like for multiple point failure
Thomas Hoenig, former FDIC vice-chair
Emir is all about financial stability and the exchange-traded derivatives market is not big enough to realistically call into question the financial stability of the EU or any individual member state
Nathaniel Lalone, Katten Muchin Rosenman
Editor's Choice
EU infighting blocks Basel recognition of banking union
Treating eurozone as single jurisdiction could slash G-Sib capital, but the 19 member nations have differences to settle first
Big Figure
A never-ending CVA story
European legislators look set to agree new powers that would allow the European Banking Authority to roll back an exemption from capitalising corporate CVA risk. This could triple CVA capital charges for EU banks, but changes to the CVA framework by the Basel Committee could still keep the exemption alive for a while longer.
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CCPs, handling default, and cyber risk
The week on Risk.net, September 15–21, 2018
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Our Take
Clearing up Deutsche’s swaps ‘shift’
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