Hong Kong has suffered a series of scandals involving companies listing on its stock market misrepresenting their businesses triggering a series of share price plunges and trading suspensions. The regulator is now fighting back to protect Hong Kong’s reputation as a key global capital market
Critics pressure regulators to make MiFID II adjustments
Should the UK leave the EU, it could be a chance for EU-based exchanges to ditch open access rules around clearing and for firms to push for other changes in MiFID II and MiFIR
Congress told cyber is the biggest risk to the financial system
Following a near six hour session at the US House of Representatives involving the CEOs of seven US G-SIBs it was revealed that cyber is the single greatest risk to the financial system while considerable concern was also expressed about shadow banking
Shift to alternative rates slowed by accounting issues
The regulatory driven shift away from Ibors to alternative near risk free rates is happening surprisingly quickly, but could be even faster if various accounting and operational issues are addressed more swiftly
European parliament approves EU banking package
The EU has passed its banking package designed to transpose revisions to the Basel framework into EU law, but not everyone is happy with the result.
ESAs gain more powers, but European Commission disappointed
The three European Supervisory Authorities have gained more power, but not as much as the European Commission asked for, while reactions from industry are mixed.
Is curbing compensation incentives the most powerful regulatory tool?
Could influencing the way bankers are compensated, namely around risk taking incentives, be key to tackling financial instability? It is a question a paper from the Atlanta Fed attempts to answer
Steve Eisman believes Canadian banks are under-estimating credit risks
Steve Eisman, who became world famous for his successful bet against US mortgage related CDOs in the run up to the 2007-9 global financial crisis has set his sights on Canada’s banks for his latest short selling punt
Industry calls for tweaks to EU market abuse regulation
The EU’s market abuse regulation is over two years old and many in the industry believe it is high time that it is reviewed given it has a number of wrinkles that not only make compliance difficult, but risks seeing firms potentially miss some market abuses
New reform proposal to relaunch the French blocking statute raises concerns
In France, a proposed measure to modernise laws designed to protect domestic companies from being subjected to legal discovery procedures abroad has resurfaced. However, it could see French banks, in particular, confronted with conflicting legal obligations under certain circumstances
Governance: marking your own homework
It is easy to become complacent about governance, and the closer you are to decision-making the harder it is to see how the process really works. A systematic review, which looks at culture as well as controls, is a wise precaution.
