| News on the global financial markets |  |
- Banks find Basel proposal for forex unnecessary
Banks have branded as unnecessary a measure by the Basel Committee on Banking Supervision to increase capital holdings to provide a safety net for foreign exchange settlements. GFMA's Global FX Division said such a setup would run counter to recent efforts to reduce outstanding principal exposure. "With regard to any capitalisation of settlement risk, the implied security of a capital charge would be small compared with the value of any actual settlement failure," said James Kemp, managing director of the division. "Prevention of settlement risk occurring therefore becomes paramount -- rather than attempting to insure against the loss." Risk.net (subscription required)
(05 Nov.)      
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| Industry News |  |  |
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- Government-bond markets land on positive ground
All 26 government-bond markets monitored by Bloomberg and the European Federation of Financial Analysts Societies are producing positive annual returns for the first time since 2008. The development comes amid strong demand for government debt. "The longer-term bull market in government bonds is still intact all over the world," said Howard Simons, a strategist at Bianco Research. Bloomberg
(05 Nov.)
- Italy reportedly dismisses creation of "bad bank"
Formation of a so-called bad bank to hold lenders' nonperforming loans reportedly was rejected by the Italian Treasury Department. It was feared that such an institution would establish a firmer connection between sovereign and bank debt, sources said. Bloomberg
(06 Nov.)
| Regulatory Roundup | | |
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- Regulators begin to ease up on rule changes
With clarity increasing among regulators regarding possible consequences of wholesale rule changes in Europe, authorities are beginning to soften their positions, industry observers say. "We have seen a degree of relaxation in liquidity standards imposed on banks," said Bob Penn, a regulatory partner at Allen & Overy. "There will be greater political intervention to meet political goals around economic growth, and that will involve laying off capital and liquidity regulations." Financial News Online (U.K.) (subscription required)
(05 Nov.)
- UK agency: Banks might need industry-specific accounting rules
Different accounting rules might be in order for UK banks after accounting firms failed to issue warnings shortly before the financial crisis, Financial Reporting Council CEO Stephen Haddrill said. He said at a conference arranged by Ernst & Young that a need for change is not yet "evident" but that the council has a panel looking into the matter. Reuters
(05 Nov.)
- BoE might turn to QE alternatives to boost economy
With the Bank of England's quantitative easing falling short in terms of results, the central bank might rely more on the Funding for Lending Scheme, which encourages banks to provide direct, low-cost credit to companies and households. "We are in uncharted territory," said Steven Bell, chief economist at hedge fund GLC. "The search for alternatives to QE is gathering pace." Bloomberg
(05 Nov.)
| Spotlight on China | | |
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- Surge of private-sector credit in Asia raises concerns
Growth in private-sector credit across much of Asia might presage another financial crisis, according to a study by Capital Economics. The firm likens worrisome credit growth in Hong Kong to the situation in Ireland and the Baltics before the last meltdown. The study also singles out China and Vietnam, where private credit has ballooned at a less alarming but still rapid rate. CNBC
(05 Nov.)
| AFME News | | |
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- Last chance to register for the AFME 7th Annual European Government Bond Conference -- THURSDAY and FRIDAY in Brussels
The European Government Bond Conference is the ONLY conference of its type, bringing together annually the whole community from the European sovereign-debt market. Participants include key senior representatives from all EU treasuries, central banks, regulators, investors and heads of government-bond trading at pan-European and US banks. Renowned for featuring high-profile speakers and a "by the industry for the industry" programme, the conference is a must-attend event for stakeholders in the government-bond market. Featuring interactive round tables to create informative and frank debate, the conference is an unrivalled opportunity to gather valuable information about what the market really thinks.
Key topics to be discussed:
- The Future of the Eurozone
- Liquidity Provisions: The Market Maker Model Under Fire?
- Credit Risk: Analysing and Hedging Sovereign Risk
- Investor Trends: Developments in Liquidity and Portfolio Management
- Past and Future of Eurozone Common Funding
View the full programme and register.
- Programme announced: AFME 4th Annual Spanish Funding Conference -- 27 November in Madrid
AFME's 4th Annual Spanish Funding Conference is scheduled on 27 November at Uría Menéndez offices in Madrid. The conference will provide excellent networking opportunities, enabling delegates to hear from key industry figures and to strategically prepare for 2013 and beyond. The conference programme will encourage debate on the economic situation and the future of Spanish and European markets, including the role of securitisation and covered bonds in the recovery of the European economy. A networking reception will follow the conference, giving attendees a chance to discuss key topics of the day with peers. See further programme information and register.
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