Latest articles from Justin Pugsley

UK’s CCPs pass exploratory stress test

The three UK central counterparty clearing houses (CCPs) were able to withstand a simulated simultaneous default of two clearing members resulting in the largest losses or negative liquidity, according to a Bank of England (BoE) stress test. 

FCA hiring crypto experts, but UK still lagging behind others on new rules

Some 15 crypto experts are being sought by the UK’s Financial Conduct Authority (FCA) to bolster its fledgling wholesale crypto policy unit – a move largely welcomed by the industry with the regulator facing a backlog of licensing requests.

Hong Kong to spend $3.8bn to attract talent and boost its financial centre

Following years of social restrictions to stem the spread of Covid-19, Hong Kong has launched a HK$30bn ($3.8bn) initiative to boost the city’s attractiveness as a financial and business centre and to stop an exodus of talent.

DSB welcomes EU move to make UPIs law

According to the EU’s Official Journal, the use of the Unique Product Identifier (UPI) is to be embedded into the bloc’s law – a move welcomed by the Derivatives Service Bureau (DSB). 

Wind and solar power

Finance Watch calls for higher capital requirements as EU banks hold $239bn in fossil fuel exposures

Large EU banks hold $239bn in fossil fuel exposures according to the non-government organisation (NGO) Finance Watch, which is warning that they pose a financial stability risk if they become stranded assets. 


DeFi stands out as crypto’s biggest regulatory challenge

Decentralised finance is one of the most difficult areas of crypto to regulate and could pose systemic risks if it becomes deeply embedded in the traditional financial system, central bankers warned.

AFME recommends setting up taskforce to study moving to T+1 settlements

European fixed income and equities markets could benefit from shorter settlement times as it would reduce counterparty and credit risk, but on the downside it could see more settlement ‘fails’ and complexity. 

Oversight body calls for ‘quick as possible’ Basel III implementation

The oversight body of the Basel Committee on Banking Supervision expects jurisdictions to implement all aspects of the Basel framework consistently and as quickly as possible in the face of resurgent inflation and deteriorating economic and financial conditions across much of the globe.

EBA endorses extension extra prudential measures on Dutch housing loan portfolios

Plans by the De Nederlandsche Bank (DNB) to extend macro-prudential measures on Dutch housing loan portfolios have been endorsed by the European Banking Authority (EBA). 

ESAs warn banks and supervisors to prepare for ‘bad times’

Deteriorating economic conditions, high energy prices and soaring inflation have increased financial sector vulnerabilities, said the joint Autumn risk report by the three European Supervisory Authorities (ESAs) which advised firms and supervisors to plan for a challenging environment.