Jay Clayton, President Donald Trump's nominee to be chairman of the Securities and Exchange Commission, said the Dodd-Frank Act should be looked at to see whether objectives are being achieved, but he doesn't have "specific plans for attack" against the law. The SEC should continue work on rules mandated by Dodd-Frank that haven't been completed, he said.
Margin requirements are less procyclical than expected, according to research by Florian Glaser and Olga Lewandowska of Goethe University Frankfurt. The study challenges concerns that financial crises could be driven by troubled clearinghouses.
A European Central Bank official says London-based banks that want to maintain access to the EU's single market after Brexit would be well advised to move key operations to the EU, intimating that their applications may be given expedited entry. Meanwhile, a number of US investment banks with London offices reportedly are actively seeking to move those operations to Frankfurt, Germany.
The outcome of Brexit negotiations and the pound's performance are intertwined, says Ben Broadbent, deputy governor for monetary policy at the Bank of England. "It's possible Brexit won't be as bad as foreign exchange markets believe ... if the government succeeds in negotiating a free agreement with the EU and opening up trade with non-EU countries," Broadbent said.
The derivatives industry needs guidance from the Commodity Futures Trading Commission on how to address conflicts of interest that confront swap-execution facilities, said CFTC member Sharon Bowen. The issue is one of several that will be addressed in a corporate-governance proposal that Bowen plans to submit this year to acting Chairman J. Christopher Giancarlo, she said.
The collapse of a central counterparty could result in losses for buy-side clearing firms, says Elke Koenig, head of the Resolution Steering Group at the Financial Stability Board. "There is clearly no miracle wand to make losses disappear," she said.
Daniele Nouy, a European Central Bank supervisor, says banks that become unviable might have to be unwound and has called for the ECB to be given more discretion on deciding whether individual banks hold enough capital to continue operating. Her comments come as the Italian government seeks to bail out two ailing regional banks.
The US would make a big mistake by taking the Dodd-Frank Act completely off the books, but that doesn't mean the law couldn't be improved, according to a paper by Tobias Adrian and Maurice Obstfeld, chief economist for the International Monetary Fund. "There is certainly room for simplification," they wrote.
This conference will provide an overview of the EMIR compliance challenge, examining areas of uncertainty as mandatory clearing approaches, and reviewing documentation by ISDA to facilitate members' compliance. It will also cover issues in margin for uncleared swaps, the EMIR Review, specifically changes to the framework for requirements that are onerous and complex for regulators and industry alike. REGISTER:EMIR Compliance Update on March 29 in London