On 18 September 2014, the FSB published a report on “Jurisdictions’ ability to defer to each other’s OTC derivatives market regulatory regimes”. The FSB member jurisdictions were asked by the FSB Chairman to unlock the secrets of each other`s framework for making equivalency or comparability decisions on matters such as trade reporting, central clearing and […]

On 4 September 2014, ECB published the final list of significant credit institutions that it will directly supervise from 4 November 2014. The 120 significant credit institutions represent almost 85% of total banking assets in the euro area. Almost all of them have been designated as significant due to their size or due to total […]

The five leading US regulatory agencies, collectively referred to as the “prudential regulators”[1], met yesterday to finalise the US iteration of the Basel III Liquidity Coverage Ratio, to adopt a supplementary leverage ratio rule and to propose new margin requirements for uncleared swaps. Liquidity Coverage Ratio– a deleveraging rule to protect financial institutions from temporary […]

On 18 July 2014, the EBA published a Consultation Paper on the Guidelines to assess other systemically important institutions (O-SIIs).  O-SIIs represent the EU implementation of the BCBS’ domestic systemically important banks (D-SIBs). Contrary to G-SIBs, the D-SIBs classification allows for considerable discretion by national authorities. Accordingly, a basket of optional indicators is available in […]

Risk Magazine is reporting that the Basel Committee on Banking Supervision’s (BCBS) final “Basel III leverage ratio framework and disclosure requirements”, published on 12 January 2014 may force the restructuring of existing portfolios of credit support annexes (CSA) and looks set to deal a serious blow to the viability of ISDA’s standard credit support annex […]

The Basel Committee on Banking Supervision will meet this Sunday, the 12th January.  They are close to a final decision on their June 2013 draft proposals to exclude all collateral from leverage ratio calculations and ban netting for repo agreements, irrespective of national rules. The decision is material- according to its 2012 Annual Report, JP […]

Introduction On 2 September 2013, the Basel Committee on Banking Supervision (“BCBS”) and the International Organization of Securities Commissions (“IOSCO”) published their long-awaited final policy document dealing with “Margin requirements for non-centrally cleared derivatives”. Scope Subject to certain exemptions discussed below, the final rules apply to financial firms and systemically important non-financial entities (“Covered Entities”) […]

Introduction On 3 July 2013, the Basel Committee on Banking Supervision (BCBS) published an “Updated assessment methodology and the higher loss absorbency requirement” (the “Updated Methodology”) for identifying globally systemically important banks (“G-SIBs”), accompanied by a reporting template and instructions. The Methodology The Updated Methodology replaces the BCBS’ previous “Global systemically important banks: assessment methodology […]

Introduction On 28 June 2013, the Basel Committee on Banking Supervision (BCBS) published a consultative document entitled “Capital treatment of bank exposures to central counterparties” (CCPs).  The purpose of the document is to consult on possible changes to the BCBS’ July 2012 interim rules on Capital requirements for bank exposures to central counterparties (the “Interim […]