Month: June 2013
ISDA to Develop Standard Model for Margining Non-Cleared Trades…
…but refuses to take a standing count in the fight over initial margin. This is a link to an article in Risk Magazine which confirms that, despite its continued in-principle opposition to the initial margin proposals contained within the Working Group on Margin Requirement’s (WGMR) consultation paper on “Margin requirements for non-centrally cleared derivatives”, ISDA […]
MiFID II General Approaches Published
On 19 June 2013, the Presidency of the Council of the EU published a note confirming that, at a meeting of the Permanent Representatives Committee (COREPER) on 17 June 2013, agreement has been reached with respect to two proposed general approach documents, one for the MiFID II Directive and the other for MiFIR. The Council […]
Bafin to Enact CVA Charge?
An interesting article in Risk magazine, highlighting the continuing uncertainty over Basel III implementation and its integration with concurrent regulatory reforms. The European version of Basel III, the Capital Requirements Regulation (CRR), contains a carve-out to the requirement under Basel III to levy a Credit Valuation Adjustment (CVA) charge in relation to the counterparty risk […]
Agreement Reached Over MiFID II
On 17 June 2013, the EU Council published a press release confirming that the Permanent Representatives Committee (COREPER), on behalf of the Council, has agreed a position with respect to MiFID II. The Council is expected to confirm this agreement, without discussion, at its meeting on 21 June 2013. This will enable the trilogue process […]
CFTC Extends SEF Rule No-Action Relief
On 31 December 2013, the Division of Market Oversight (“DMO”) within the CFTC issued a no-action relief letter in relation to Swap Execution Facility (“SEF”) rules enacted under the Dodd-Frank Act. The relief was regarded as necessary to avoid the possibility that entities which had submitted or planned to submit an application to become a […]
Further EMIR Delay as Commission Extends Deadlines for Third-Country Equivalence advice
On 14 June 2013, the European Securities and Markets Authority (ESMA) published a letter received from the EU Commission extending again the deadlines for ESMA to deliver technical advice on third-country equivalence under EMIR. The delay has been agreed in order to allow ESMA more time to take account of international on-going developments and follows […]
BBA Announces Libor Reform
On 12 June 2013, the British Bankers’ Association (BBA) announced changes to the London Interbank Offered Rate (LIBOR) in an attempt to restore confidence in Libor as a reliable benchmark in the wake of last year’s rate-fixing scandal. Following recommendations of the Wheatley Review published last September, the BBA press release and announcement state that: […]
Update on MIFID II
Nearly two years after it was first proposed, MIFID II remains stalled. EU President Ireland is attempting to break the deadlock with its 10th compromise proposal to date, published on 11 June 2013. The proposal covers three main areas of contention: Clearing houses/trading venues. “Open access” – allowing clearing houses to clear on any venue. […]
EU Parliament Seeks to Light Fire Under Council and Commission
On 11 June 2013, the EU Parliament’s Economic and Monetary Affairs Committee (ECON) published a motion for a resolution concerning the lack of progress in the EU Council and the European Commission in adopting certain financial services proposals. The resolution calls on the Council and the Commission to take all necessary actions to resolve delays with […]
EU Commission Extends Liikanen Consultation
The EU Commission has extended its consultation on reforms to the structure of the EU banking sector to 11 July 2013 according to its webpage. The consultation was launched on 16 May 2013 and was expected to run until 3 July 2013. The Commission is seeking views on policy options relating to the scope of […]