Financial MarketsRSS

FSB sees limited further progress on implementing OTC derivatives reforms

Between the end of November 2018 and the end of September 2019, further progress has been limited on implementing reforms for the over-the-counter (OTC) derivatives market, the Financial Stability Board (FSB) said. 

Firms warned to comply with bank rules on crypto-assets

Three US regulatory agencies have warned in a joint statement that the financial services industry must comply with banking rules when it comes to crypto-currencies.

US agencies propose initial margin exemptions for swap affiliates

Five agencies are proposing that swap entities would not have to hold initial margin for uncleared swaps with their affiliates while inter-affiliate transactions would still be subject to variation margin requirements.

Jerome Powell

Fed struggles to find solution to ‘puzzling’ repo spikes

Analysts remain rattled by the September cash crunch and predict more turbulence in December. The Fed is propping up US repo markets but has stopped short of relaxing bank capital and liquidity rules. 

Financial firms call for CCPs to have more ‘skin in the game’

Nine large financial firms are calling on supervisors to force central counterparty clearing houses (CCPs) to carry more capital and to have clearer resolution plans as they fear they still pose a systemic risk.  

ISDA consultation reveals industry splits over managing fallbacks

Most market participants are not keen to continue referencing covered interbank offered rates (Ibors) in existing or new derivatives contracts, but were split on how to manage fallbacks. 

Joshua Roberts

Libor may yet have life beyond 2021

The industry has done a great deal of work towards shifting financial instruments from referencing Libor towards using alternative rates. But such is the scale of the task, many industry sources doubt that the transition will be complete by the end of 2021

AFME calls on EU to support green securitisations as investor interest grows

There is a growing interest from investors in green securitisations said the Association for Financial Markets in Europe (AFME) in a report, which is calling for more EU support for the sector. 

Brexit would leave the EU a significantly diminished capital markets player

Should the UK leave the EU, it will see the EU’s capital markets being smaller, less liquid and less well developed with France becoming the union’s dominant player, the think tank New Financial said in a report. 

Gavel

Transitioning away from Libor is littered with legal pitfalls

The end of Libor is a big challenge for market participants, but not anticipating some of the logistical issues involved in transitioning to alternative rates could result in a raft of costly legal actions