Blockchain has emerged as an exciting new technology that could shake up many aspects of financial services and in the process has attracted the attention of supervisors looking to encourage it while containing any risks with each taking its own approach
Financial Markets
China pumps in money to offset impact of corona virus on financial system
The People’s Bank of China (PBoC) reduced repo rates by 10 basis points on February 3 and separately deployed around RMB1.2tn ($173bn) into reverse bond purchases as the country returned to work after the Chinese New Year holidays.
UK regulators up the ante on Libor transition
UK regulators have doubled down on their determination to wean the financial sector off sterling Libor, a move which might speed up the transition to alternative rates for other currencies as well
CFTC proposes position limits on commodity futures contracts to stem price manipulation
The Commodity Futures Trading Commission (CFTC) proposes placing position limits on 25 commodity futures contracts such as crude oil and gold to curb the ability of market participants to manipulate prices.
Firms should not overlook conduct risks in switch to RFRs
Much of the discussion over switching from Libor to RFRs is around technicalities, such as value transfer and crucial though these factors are, firms should not overlook the conduct risks involved in the transition.
Cleaning up Hong Kong’s IPO market faces several more years of reforms
Hong Kong’s huge success in attracting IPOs masks the fact that its stock market is still plagued with conduct issues and it is likely that there are several more years of regulatory reforms to come
China seeks compliance with EU rules as it internationalises its benchmarks
As part of making their benchmarks internationally usable by regulated financial firms, Chinese providers are increasingly looking to comply with the EU benchmarks regulation as a stamp of approval
US regulators step up pressure on firms to be ready for Libor demise
As part of ramping up the pressure on financial firms, US regulators are asking them to submit plans demonstrating that they are ready to cope with the likely end of the London interbank offered rate (Libor) in 2021.
FSB sounds further warnings on Libor’s threat to financial stability
The Financial Stability Board (FSB) once again warned about the financial stability implications due to the ongoing reliance of the global economy on the London interbank offered rate (Libor) and pressed for greater effort to move to alternative benchmarks by the end of 2021.
FSB finds concentrated holdings of leveraged loans and CLOs
The Financial Stability Board (FSB) said in a report that most leveraged loans are originated and held by banks, and they have the largest exposure to the sector and note the increasing role of non-bank financial institutions.
Most Viewed
- Preparing for a testing 2020
- Firms should not overlook conduct risks in switch to RFRs
- The PRA’s demanding liquidity framework is a commercial opportunity
- MLRO’s have key role to play in protecting banks from money laundering risks
- ESG and climate change will continue rising up the regulatory agenda
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