Tuesday, 28 May 2013

US and Global - DTCC sues CFTC over CME

Trade reporting ... Anti-competitive behaviour.... Details here.

Asia - Banking Resolution Regimes

A write-up by Clifford Chance on Asian bank resolution regimes.

Global - UNIDROIT Principles for Close-out Netting

UNIDROIT Principles for Close-Out netting are finally out. It will probably take another decade for this to percolate into any real-life sort of significance.

EU - Structural Reform of the Banking Sector

Consultation by the European Commission on structural reform of the banking sector - the Liikanen sort of idea,
On May 13, the European Commission published guidance on the Article 25 EMIR recognition process for non-EU CCPs.

Wednesday, 1 May 2013

Europe - EMIR Implementation Timeline

Clifford Chance has an updated article on the timelines for the roll-out for different aspects of EMIR.

Japan - Resolution Regime

The FSA in Japan has come up with a bill to introduce an orderly resolution regime. It proposes to amend the Financial Instruments and Exchange Act. The regime would encompass deposit-taking institutions, insurance companies, financial instruments business operators and financial holding companies.

Global - IOSCO Paper on Financial Benchmarks

It's a consultation paper. Yet to be finalised.

Global - BIS Paper on Structural Bank Regulation

A BIS paper on proposals to separate commercial and investment banking (Volcker, Vickers , Liikanen and the like).

Wednesday, 27 March 2013

Global - ISDA Paper on Non-Cleared Swaps and the Global Economy

On 13 March 2013, ISDA has published an educational paper to explain what non-cleared swaps do for the real economy. This is basically a warning to the regulators of the potentially disastrous consequences of imposing the proposed new margin requirements on non-cleared swaps.

Global - Recognising the Cost of Credit Protection Purchased

Basel consultation paper, on how to deter participants from mitigating credit risk.

Ok, I'm being a little cheeky, but it does smack that way somewhat.

UK - Policy Statement on Supervising Benchmark Activities

An important milestone in the LIBOR scandal story.

The FSA has published its final framework on how it intends to supervise and regulate benchmark activities. The policy statement also contains the actual regulations.

Australia - Consultation on Clearing and Settlement Facilities

Oh, so many things to update.

Here's the ASIC consultation paper on clearing and settlement facilities. The focus is on the cross-border and international aspects.

Tuesday, 26 February 2013

Global - FX Settlement Paper is Finalised

Well, here's a significant milestone. The paper has been finalised - "Supervisory Guidance for Managing Risks Associated with the Settlement of Foreign Exchnage Transactions".

Global - CCP Interoperability

Here is some commentary by ISDA on the interoperability of CCPs. This is in the context of an ESMA consultation.

Global - Protection of Client Assets

IOSCO has published a consultation paper on how to ensure adequate protection for client assets.

EU - The Official Journal

Just posting the link, to the Official Journal of the European Union.

EU - More on the Financial Transaction Tax

Clifford Chance has another article on the EU financial transaction tax.

Global - Proposed Margin Requirements Are "Near Final"

So they say. Methinks that as regulators delve into the implementation process, they will begin to know how much they do not know, and to discover a great long list of issues that the Basel-IOSCO paper didn't really consider.

Anyway, here is the 2nd consultation paper from Basel and IOSCO.

Sunday, 27 January 2013

Australia - OTC Derivatives Regulatory Reform

The Australian Treasury has published a proposal paper entitled Implementation of Australia's G20 OTC Derivatives Commitments.

Global & Europe - Financial Transaction Tax

Clifford Chance has an article on the latest developments regarding the "enhanced cooperation procedure" to implement a financial transaction tax.

Singapore - MAS Adoption of IOSCO-CPSS Standards

The MAS has officially announced this in a newly-published monograph, Supervision of Financial Markets Infrastructure in Singapore.

Global - Delay in Implementing the Margin Rules for Uncleared Swaps

Global regulators may delay rule implementation till 2015, with a full roll-out to be achieved only in 2019. Bloomberg has the scoop.

Monday, 7 January 2013

Asia - Delays in Basel III Implementation


Korea, India and the Philippines have delayed the implementation of Basel III.

The Korean Financial Services Commission (FSC) issued a notice on 21 December, reviewing implementation by Basel Committee members of the Basel III rules. The FSC said that 11 out of 27 countries have finalised rules while the rest have only issued draft regulations. The majority of jurisdictions, including the EU and US, will miss the internationally agreed start date for implementation of 1 January 2013. The FSC said that “there is a need to reflect global trends” and will monitor other countries’ implementation before setting a specific timeline for domestic implementation of Basel III.

Similarly, the Reserve Bank of India announced on 30 December that it has rescheduled the start date for implementation of Basel III to 1 April 2013. Meanwhile the Philippines issued finalised guidelines but they will take effect only from 1 January 2014.

Global - Basel Offers a Reprieve On CCP Exposures

See their updated FAQs. Specifically, Paragraph 5.6:


5.6 Industry would like to seek clarification as to 1) who will determine whether a CCP is qualifying; and 2) If it is the national supervisors, when will the list be available?

If a CCP regulator has provided a public statement on the status of a CCP (QCCP or nonqualifying), then banks will treat exposures to this CCP accordingly. Otherwise, the bank will determine whether a CCP is qualifying based on the criteria in the definition of a QCCP in Annex 4, Section 1.

During 2013, if a CCP regulator has not yet implemented the CPSS-IOSCO Principles for Financial Market Infrastructures (PFMIs), but has publicly stated that it is working towards implementing these principles, the CCPs that are regulated by the CCP regulator may be treated as QCCPs. However, a CCP regulator may still declare a specific CCP nonqualifying.

After 2013, if a CCP regulator has yet to implement the PFMIs, then the bank will determine whether a CCP subject to such a CCP regulator’s jurisdiction is qualifying on the basis of the criteria outlined in the definition of a QCCP in Annex 4, Section 1. The bank will provide its supervisor with a list of CCPs that it has exposure to, including its evaluation of the relevant criteria. An important consideration for this purpose is whether a CCP is subject to domestic rules and regulations that are consistent with the CPSS-IOSCO Principles for Financial Market Infrastructures.

Tuesday, 1 January 2013

Global - Dodd-Frank Effects on Asset Management

Some analysis by Clifford Chance, about the effects of the Dodd-Frank Act on non-US asset managers.

EU - EMIR Implementation Timeline

Here is a Clifford Chance article on the European Commission's adoption of key technical standards under the EMIR on 19 December 2012. The article shows the projected timeline for implementation of these technical standards.

Wednesday, 26 December 2012

US - More No-Action Letters from the CFTC ... And an Exemptive Order

The CFTC has been issuing so many no-action letters that maybe it's better if they issued a summary of what they actually want banks to take action on. It's been so confusing trying to figure out what the CFTC actually wants.

Allen & Overy has a quick write-up on the CFTC's 3 latest no-action letters. These concern (a) disqualifications of Associated Persons, (b) fingerprinting od non-US principals and (c) submission of annual reports.

Meanwhile, the CFTC has also issued an exemptive order on the cross-border application of the Dodd-Frank Act. We get more clarity on the U.S person definition. There is a special carve-out for funds and collective investment vehicles.

And Clifford Chance has an article on the extension of the effective date of certain Dodd-Frank rules to 1 May and 1 July 2013.

Basel - Changes Affecting Securitisations

I don't know who does securitisations anymore, quite frankly. But anyway, here's Clifford Chance's write-up on proposed Basel III changes for the capital treatment of securitisations.

Tuesday, 18 December 2012

Korea - The Bill That Wasn't


A bit of a surprise. The amendments to the Capital Markets Act didn't get passed in the Korean Parliament on 22 November. This will cause a delay for OTC central clearing. The Bill was not thrown out - it was just postponed or delayed in some way. We now wait for February to see what happens.