Most Clicked GFMA SmartBrief Stories

1. Basel Committee targets banks' risk-capital models

GFMA SmartBrief | Jan 29, 2015

The Basel Committee on Banking Supervision has set as a 2015 priority more transparency for models that banks use to determine risk and capital they must retain to balance that. In addition, the committee might try to rein in banks' latitude in assessing risk. "The revised disclosure framework represents an important shift in both the format and granularity of required bank disclosures," Chairman Stefan Ingves said. Financial Times (tiered subscription model) (28 Jan.) New York Times (tiered subscription model), The (28 Jan.) (subscription required) (28 Jan.)

2. Details of EU plan for capital-markets union are leaked

GFMA SmartBrief | Jan 30, 2015

EU Financial Services Commissioner Jonathan Hill is expected next month to introduce a consultation document for a proposed capital-markets union. A draft version includes using high standards for securitisation, easing capital rules for banks and insurers that invest in infrastructure and simplifying the prospectus procedure for corporate fundraising. Financial Times (tiered subscription model) (29 Jan.) Reuters (29 Jan.) MLex (subscription required) (29 Jan.)

3. EU document to map out capital-markets union by 2019

GFMA SmartBrief | Jan 28, 2015

The EU is preparing a document outlining the establishment of a capital-markets union by 2019. Three papers introducing the framework are set to be published on 18 February by the European Commission. Many see the effort as unrealistic, saying nations will never compromise enough to pull it off. Reuters (27 Jan.)

4. 10 eurozone nations reassert desire for transaction tax

GFMA SmartBrief | Jan 30, 2015

Ten European countries say they are committed to implementing a financial-transaction tax, despite a collapse of negotiations last month. "We decided that the tax should be based on the principle of the widest possible base and low rates," according to a statement from Austria, Belgium, Estonia, France, Germany, Italy, Portugal, Slovakia, Slovenia and Spain. Bloomberg (27 Jan.)

5. Risk managers caution about too-high capital floor

GFMA SmartBrief | Jan 27, 2015

Risk managers predict that if a floor tied to capital-requirement models is set too high, such as 70% or more, banks will stop using them. Some say an ideal floor falls between 10% and 50%. The Basel Committee on Banking Supervision is working on the requirement. (subscription required) (26 Jan.)

6. EU bill to ring-fence banks' prop trading seen faltering

GFMA SmartBrief | Jan 27, 2015

Legislation to separate banks' proprietary trading from retail operations might be dying, some members of the European Parliament say, citing disagreement over fundamentals of the measure, which was introduced a year ago. Bloomberg (27 Jan.)

7. EU official: Pact on EU, US derivatives rules at hand

GFMA SmartBrief | Jan 28, 2015

The US and the EU are close to announcing a deal on rules for cross-border swaps, says Olivier Guersent, a financial-services official at the European Commission. Each side is willing to accept the other's derivatives-trading regulations to thwart market fragmentation, Guersent says. Reuters (27 Jan.)

8. LSE reportedly to sell recently acquired Russell

GFMA SmartBrief | Jan 30, 2015

London Stock Exchange Group will put Russell Investments on the block next month, after purchasing it last year, sources say. LSE reportedly wants $1.4 billion. Reuters (28 Jan.)

9. Basel chief: Bank rules to be reviewed for potential clarification

GFMA SmartBrief | Jan 28, 2015

The Basel Committee on Banking Supervision will study its standards for possible clarification after regulatory experts published a review of European bank-capital rules that identifies differences from Basel III. The committee will pressure Europe to comply with Basel III, Chairman Stefan Ingves says. (subscription required) (27 Jan.)

10. Basel deadline likely to be missed by major banks

GFMA SmartBrief | Jan 30, 2015

About half of banks considered globally systemically important will not meet a January 2016 deadline to revamp risk-data capabilities, according to the Basel Committee on Banking Supervision. A Markit survey has found an anticipated compliance rate of 17%. (subscription required) (29 Jan.)

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