Most Clicked GFMA SmartBrief Stories

1. IOSCO chairman opposes bank-style rules for asset managers

GFMA SmartBrief | Jun 23, 2015

Regulators should not use bank-style rules to govern the asset-management industry, International Organisation of Securities Commissions Chairman Greg Medcraft says in explaining why IOSCO is moving away from designating asset managers as systemically important financial institutions. "We should not use tools developed for [the] banking and insurance space as our starting point," Medcraft said. "Frankly, it's like creating a square peg for a round hole. It's got to be appropriate for use." Read SIFMA's statement. Reuters (22 Jun.) Bloomberg (22 Jun.) (22 Jun.)

2. Greece shuts banks, stock market

GFMA SmartBrief | Jun 29, 2015

The Greek government has imposed capital controls, including closure of banks and the stock market, after the European Central Bank refused to increase emergency liquidity that has prevented the financial system from collapse. A referendum Sunday will decide whether Greece accepts an offer from international creditors, Prime Minister Alexis Tsipras says. The New York Times (tiered subscription model) (28 Jun.) Kathimerini (Greece) (28 Jun.) (France) (28 Jun.)

3. FSB might let some structured notes absorb losses

GFMA SmartBrief | Jun 25, 2015

The Financial Stability Board is considering letting some structured notes count toward total loss-absorbing capacity, in response to industry feedback. Bloomberg (24 Jun.)

4. UK bank execs' bonuses subject to clawback for 10 years

GFMA SmartBrief | Jun 24, 2015

Bonuses can be clawed back within 10 years because of misconduct by top bank executives, according to the Bank of England Prudential Regulation Authority and the Financial Conduct Authority. Lawyers have questioned the ability of regulators to enforce the rule, and critics say UK banks will have to pay more to attract the best executives worldwide. Reuters (23 Jun.) The Wall Street Journal (tiered subscription model) (23 Jun.) The Guardian (London) (23 Jun.) The Telegraph (London) (tiered subscription model) (23 Jun.)

5. Trading firms anxious about a minute with 61 seconds

GFMA SmartBrief | Jun 29, 2015

Trading computers will face a minute that lasts 61 seconds at midnight Greenwich Mean Time on Tuesday, an adjustment to bring electronic time in sync with slowing of Earth's rotation. This is the first time the adjustment will happen during trading hours since financial markets went electronic. Experts are concerned whether large computers will handle it properly. Financial Times (tiered subscription model) (28 Jun.) Bloomberg (29 Jun.)

6. Greece's Tsipras criticises creditors for rejecting reform proposals

GFMA SmartBrief | Jun 25, 2015

Prime Minister Alexis Tsipras has criticised creditors for holding Greece to a higher standard on reform than they did with Ireland and Portugal, after lenders rejected some proposals. "Either they don't want a deal or they are serving specific interests in Greece," he tweeted. Reuters (24 Jun.) MarketWatch (24 Jun.) The Telegraph (London) (tiered subscription model) (24 Jun.)

7. EBA aims to cut banks' capital buffers for ABS

GFMA SmartBrief | Jun 29, 2015

A proposal by the European Banking Authority would reduce by 25% capital buffers for banks that buy asset-backed securities. Criteria for determining the creditworthiness of associated loans would be tightened. "These are good proposals, and it's encouraging that they have reduced the capital requirements, broadly speaking," said Richard Hopkin, managing director of securitisation at AFME. MLex (subscription required) (26 Jun.) Financial Times (tiered subscription model) (26 Jun.) Reuters (26 Jun.)

8. Moody's proposes global rating methodology for CCPs

GFMA SmartBrief | Jun 24, 2015

Moody's Investors Service is reassessing the credit quality of clearinghouses and has proposed a global methodology for assessing risk posed by central counterparties. CCPs have become systemically significant because of regulatory changes after the financial crisis. "This increased channeling of financial market activity to the clearinghouse has made the role of the CCP critical to the health of the financial system," according to the credit rating agency. Moody's has called for comment on the proposal by 21 August. International Financing Review (free content) (23 Jun.) FOW magazine online (subscription required) (23 Jun.) Financial Times (tiered subscription model) (23 Jun.)

9. Commentary: The illusion of liquidity

GFMA SmartBrief | Jun 29, 2015

Concern is growing that asset managers have created the appearance of liquidity in markets that are vulnerable to liquidity disappearing during times of stress, David Oakley writes. Financial Times (tiered subscription model) (28 Jun.)

10. Liquidity drying up in Danish repo market

GFMA SmartBrief | Jun 26, 2015

Volume is rapidly declining in Denmark's repo market, partly because of bank rules on leverage and liquidity. The contraction is creating problems for the secondary covered-bond market, which depends on repos for liquidity. Bloomberg (26 Jun.)

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