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03 December 2012
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News on the global financial markets

  Morning Bell 
  • Company bond sales in Europe expected to fall in 2013
    A rush of companies taking advantage of record low interest rates in 2012 means that Europe is likely to see a falloff of as much as 37% in private debt issues in the new year, according to Harpreet Parhar, a strategist at Credit Agricole. Looking ahead to 2013, companies see a less friendly credit market if the austerity-burdened continent's recession deepens as well as political uncertainty heading into elections in Germany and Italy. Bloomberg (30 Nov.) LinkedInFacebookTwitterEmail this Story
  Industry News 
  • New rules will rein in alternative sources of credit, study shows
    Allen & Overy has released a study that shows that new regulations in Europe, the US and elsewhere will curtail the ability of asset managers, insurers and investment funds to provide alternative sources of credit. The research found that new rules governing the derivatives markets, hedge funds, banks and other areas of the financial industry will combine to increase the cost of credit. ÔÇťAllen & Overy believes it will take years to clarify exactly what the growing number of regulations mean, creating confusion and uncertainty in the market and bringing with it a prolonged period of credit paralysis," according to the study. Financial Times (tiered subscription model) (02 Dec.), The Wall Street Journal/Dow Jones Newswires (02 Dec.), Banking Times (London) (03 Dec.) LinkedInFacebookTwitterEmail this Story
  • Moody's downgrades euro-zone rescue funds' ratings
    The eurozone's two rescue funds lost a notch in their ratings standings as estimated by Moody's, which also characterised the outlook for each as negative. France, the second-biggest backer of one of the funds -- the European Financial Stability Facility -- earlier lost its top ratings by both Moody's and Standard & Poor's. Bloomberg (01 Dec.) LinkedInFacebookTwitterEmail this Story
  Regulatory Roundup 
  • Mid-2013 seen as realistic for Basel III, Bundesbank member says
    January implementation is unrealistic for Basel III, which may have to wait till the middle of 2013, according to Bundesbank board member Andreas Dombret. However, in a Handelsblatt interview, Dombret expressed high confidence that U.S. banks will be on board eventually. Reuters (02 Dec.) LinkedInFacebookTwitterEmail this Story
  • Exchanges join together to question Basel margin rules
    The world's biggest exchanges have joined forces to protest strict new capital requirements proposed by the Basel Committee on Banking Supervision's Interim Capital Framework. They contend that the measures "will increase the cost of exchange-traded derivatives and could potentially make [them] more expensive than less liquid and less transparent products," according to a letter they sent to the Financial Stability Board. Financial News Online (U.K.) (subscription required) (30 Nov.) LinkedInFacebookTwitterEmail this Story
  • Asian regulators scrutinise shadow banking
    A property downturn in South Korea led to the recent closure of a number of unregulated banks due to heavy losses in project investment, one of a number of events across the region that have focused the attention of regulators on shadow banking. The sector deserves more scrutiny, said Greg Medcraft, chairman of the Australian Securities and Investments Commission. However, others warn that restrictions cast too wide could dry up funding for projects such as micro-financing that are vital in some parts of the region. (subscription required) (28 Nov.) LinkedInFacebookTwitterEmail this Story
  • US banks look at ways around upcoming derivatives rules
    Wall Street banks are explaining to their foreign clients that they can sidestep upcoming new US rules governing over-the-counter derivatives by routing trades through their overseas divisions, sources said. "What banks are looking at is: can they put their business with non-U.S counterparties through a London entity, and will the regulators in the UK accept all the business coming through those entities?" said ASIFMA CEO Mark Austen. Reuters (03 Dec.) LinkedInFacebookTwitterEmail this Story
  Spotlight on China 
  • Chinese futures trading soars as stocks lag
    China's lagging stock markets have led investors to other venues, accelerating growth in the country's futures markets. This year combined trading turnover is up nearly 20% in the first 11 months from the year-earlier period, according to an industry group (China) (02 Dec.) LinkedInFacebookTwitterEmail this Story
  GFMA News 
  • IOSCO Secretary General David Wright will speak at GFMA/SIFMA LEI Seminar -- 11 December in New York City
    GFMA and SIFMA are partnering to present "Implementing a Global LEI Framework -- Ready. Set. Go." International Organisation of Securities Commissions Secretary General David Wright will provide the keynote address. Join Wright, US Treasury Department representatives and financial-services leaders as they address key issues that will influence and shape the future of a global standard for legal-entity identification and the impact such regulations and processes will have on your firms starting in December. Don't miss your chance to prepare. Register! LinkedInFacebookTwitterEmail this Story
Silent gratitude isn't much use to anyone."
--Gladys Bronwyn Stern,
British writer

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