In its written statement to the UK parliament, Rishi Sunak, the chancellor (finance minister), said the government will use upcoming amendments to the financial services bill to give the Financial Conduct Authority (FCA) the power to manage the orderly transition from the London interbank offered rate (Libor) to alternative rates.
Financial Markets
Spot FX once again faces prospect of EU regulation
Regulating the spot FX market is back on the table in the EU, raising concerns in the industry that the European Commission might be seriously considering going ahead with this proposal.
FSB notes some delays in switching away from Libor due to Covid-19
The transition by firms to alternative interest rate benchmarks from the London interbank offered rate (Libor) is likely to have been temporarily disrupted by the Covid-19 pandemic, the Financial Stability Board (FSB) said in a statement.
Forum delivers recommendations to European Commission to boost CMU
Yet another attempt is being made to breathe life into the EU’s CMU. This time it is 17 recommendations from a high level forum, most of which have been well received by industry with the baton now passed to the European Commission to act on them
Exchanges push to limit SIs' role as part of MiFID review
In a Federation of European Securities Exchanges webinar, some speakers called for the activity of systematic internalisers to be reined in further, for undermining transparency and price formation. By Justin Pugsley
Covid-19 fallout increases urgency to address Libor transition legal issues
Fallout from the Covid-19 pandemic is heaping pressure on market participants to resolve the legal issues bedevilling the transition from Libor to alternative risk-free rates. By Johnny Shearman, professional support lawyer at Signature Litigation LLP, and Justina Stewart, barrister at Outer Temple Chambers.
Should digital coins and tokens be regulated as securities?
The growth in digital coins and tokens has posed considerable challenges for regulators trying to protect investors from harm, but perhaps the question of how to regulate cryptocurrencies is based on a false premise. By Todd McDonald, co-founder of R3.
Covid-19 disrupts shift to risk free rates and regulators' deadline
The US Federal Reserve dropping SOFR in favour of Libor for a major funding programme has sparked mixed views as to whether this signals problems for the replacement risk free rates or if it is a minor hiccup.
Covid-19 worsening existing financial vulnerabilities - IMF
The Covid-19 pandemic is exposing and exacerbating financial vulnerabilities built up over a decade of low interest rates and volatility, warn two IMF officials, who also urge scrutiny of non-banks. By Justin Pugsley.
Securities regulators lift short selling ban, but could reimpose it
Six EU securities regulators coordinate the lifting of their short selling bans, but have left open the possibility of reimposing them should extreme volatility reignite again
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