On 15 July, the FSB’s Foreign Exchange Benchmark Group published an interim report on FX benchmarks.  Responses should be sent by 12 August. The report focuses on the two pre-eminent FX benchmarks: the World Markets Co/Reuters (WMR) 4pm London fix and the euro foreign exchanges rates set by the European Central Bank (ECB). WMR publishes […]

The FSB has further delayed its decision on the systemic risk status of reinsurers. In July 2013, when it published its initial list of G-SIIs, the FSB indicated it would reach a decision on major reinsurers by July 2014. The Society of Lloyds’ systemic risk webpage now indicates that the decision has been deferred to […]

The IMF has issued its latest warning on the perennial problem of TBTF banks. Chapter 3 of its bi-annual Global Financial Stability Report presents an interesting comparison of different approaches to calculating the TBTF subsidy consequent upon implicit government bailout\guarantee. Its broad approach is to compare CDS prices and credit ratings across larger and smaller […]

On 8 January 2014, the Financial Stability Board (FSB) and the International Organization of Securities Commissions (IOSCO) published a consultation paper on “Assessment Methodologies for Identifying Non-Bank Non-Insurer Global Systemically Important Financial Institutions” (NBNI G-SIFIs).  The consultation period closes on 7 April 2014. The consultation details a framework which is broadly consistent with existing methodologies […]

On 25 October 2013, the Financial Stability Board (FSB) published a list of: responses to its 12 August 2013 consultation on the Application of the Key Attributes of Effective Resolution Regimes to non-bank financial institutions; and responses to its 12 August 2013 consultation on Information sharing for resolution purposes.

The FSB issued a report on Monday, ahead of the St. Petersburg G20 meeting, assessing progress on the problem of Too Big To Fail financial institutions. Aside from important judgements as to whether they should actually be called Too Interconnected etc., a valid answer to the TBTF question has the potential to render much of […]

On 28 August 2013, the Financial Stability Board (FSB) published a press release announcing the launch of a proposed Assessment Methodology for the Key Attributes of Effective Resolution Regimes for Financial Institutions.  The Key Attributes of Effective Resolution Regimes for Financial Institutions (‘the Key Attributes’) were endorsed by G20 Leaders at the Cannes Summit in […]

On 12 August 2013, the Financial Stability Board published a consultation document regarding the “Application of the Key Attributes of Effective Resolution Regimes to Non-Bank Financial Institutions”, inviting comments by 15 October 2013. The consultation document proposes draft guidance on how the Key Attributes should be implemented with respect to systemically important non-bank financial institutions. […]

12th August 2013. The CFTC issued a press release, announcing the approved final rules to implement enhanced risk management standards for systemically important DCO’s (“SIDCO”). The rules are intended to cohere with the BIS-IOSCO Principles for Financial Market Infrastructures recommendations, enabling the FSB-assessed SIDCO’s to continue as Qualifying Central Counterparties under international capital regulations. The […]