Draft legislation on securities financing and the implementation of settlement discipline rules both pose challenges.

Responses to the consultation on a new standardised approach express concern that it would have little sensitivity to actual changes in operational risk.

Global regulatory bodies have launched a second consultation on a process to identify non-bank, non-insurer global systemically important financial institutions.

With many fixed income and commodity benchmarks transitioning to new administrators, it is unclear how far the industry will ultimately comply with principles set out by securities regulators.

Regulators including the European Banking Authority, single supervisory mechanism and New York Federal Reserve are looking at ways to link bank pay more coherently to good risk management practices.

Most derivatives will classify as illiquid under the Markets in Financial Instruments Directive, but market participants are still alarmed over the possible impact of transparency requirements on fixed income instruments.

Banks are gradually narrowing their capital and funding gaps under the Basel rules, but the leverage ratio and net stable funding ratio are still likely to pose challenges.

The European Banking Authority has announced a wide-ranging examination of the assumptions and supervisory treatment of internal models used for calculating credit risk-weights as part of banks' capital ratios.

UK prudential and conduct regulators have clarified the responsibilities of non-executive directors, required banks and insurers to set up adequate whistleblowing arrangements and set out new requirements for bank auditors.

A study intended to feed into the European Parliament's debates on bank structural reform has found that trading desks are performing poorly in terms of profitability, with little evidence that they make a significant contribution to the wider economy.