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06 March 2013
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News on the global financial markets

  Morning Bell 
  • Osborne backs giving investors choice in trade clearing
    At a meeting of EU finance ministers, UK Chancellor George Osborne supported a proposal to give investors a choice of where they clear stock, bond and derivative trades. The measure is part of the revised Markets in Financial Instruments Directive. Osborne also reiterated UK opposition to an EU plan to require nations to develop a bank-financed resolution fund that would step in when a bank is collapsing. Reuters (05 Mar.), Bloomberg (05 Mar.), The Wall Street Journal (05 Mar.) LinkedInFacebookTwitterEmail this Story
  Industry News 
  • Banks seek dismissal of Libor lawsuits
    JPMorgan Chase, Bank of America and other banks are being sued by local governments, community banks and customers regarding possible manipulation of the London Interbank Offered Rate. The defendants have asked US District Judge Naomi Reice Buchwald to dismiss the cases, arguing there is no evidence they broke the law. Reuters (05 Mar.), Bloomberg (05 Mar.), The Wall Street Journal (05 Mar.) LinkedInFacebookTwitterEmail this Story
  • More banks stop participation in setting benchmark rates
    Citigroup reportedly has reined in its role in setting benchmark rates in Malaysia, while JPMorgan Chase and UBS are pulling out of a panel that determines Australia's benchmark swaps rate. "The reason why they're pulling out is they're concerned about regulations and about legal liabilities," said Sandy Mehta, CEO of Value Investment Principals. "If you have a smaller number of players, you'll end up in the same spot where you'll have the risk of inefficient rates over the risk of manipulation." Bloomberg (05 Mar.) LinkedInFacebookTwitterEmail this Story
  • Regulation is expected to hit investment-banking revenue
    At JPMorgan Chase's annual investor day, a data point indicated how market-structure rules might affect revenue at investment banks. Analysts say rules governing clearing, collateral, post-trade transparency and trading on swaps-execution facilities could reduce JPMorgan's revenue as much as $2 billion annually. Analysts also have looked at how rules might affect revenue at Royal Bank of Scotland and Barclays. Financial News Online (U.K.) (free content) (05 Mar.) LinkedInFacebookTwitterEmail this Story
  • Spanish and Italian bonds attract investor interest
    Analysts at European investment firms are recommending a return to Spanish and Italian bonds. "It's risk-on with regard to peripheral bond markets," said Christian Eckert of Lazard Asset Management. They do warn that despite potential profit, the trade carries high volatility. Bloomberg (05 Mar.) LinkedInFacebookTwitterEmail this Story
  Regulatory Roundup 
  • Norway's FSA wants room to customise mortgage, covered-bond rules
    The Financial Supervisory Authority of Norway is seeking flexibility in writing stricter rules for covered bonds and mortgages, as requested by the government. The regulator, which agrees that tougher rules are necessary, wants to be able to consider banks' varying circumstances. Reuters (05 Mar.) LinkedInFacebookTwitterEmail this Story
  • Some EU countries want more time to implement Basel III
    Ireland hopes to publish Basel III rules in the EU Official Journal by 1 July, with the aim of implementation by 1 January. Some EU nations are concerned about the timeline. "A number of delegations maintain their reservations and indicate that under any circumstances 12 months would be needed between publication in the Official Journal and the date of application/transposition," according to an EU document. Bloomberg (05 Mar.) LinkedInFacebookTwitterEmail this Story
  Spotlight on China 
  • Companies remain sceptical of yuan as global currency
    Executives say they remain unconvinced that doing business in the yuan will lower their costs in China. While the Chinese government and businesses are applying pressure, multinational companies are reluctant to adopt the currency. "We would very much like to settle in yuan and reduce our currency risk a little, but the clients in the major European countries and the US won't do it," said Li Bin of Chinese manufacturer Lipac. Reuters (05 Mar.) LinkedInFacebookTwitterEmail this Story
  AFME News 
  • Early-bird registration is open: AFME 6th Annual European Post-Trade Conference
    Registration is open for AFME's 6th Annual European Post-Trade Conference, scheduled on 23 May at the Lancaster London hotel. This event brings together eminent speakers from across the industry, including senior operations executives and key regulators, and offers insights into crucial developments in the post-trade space and their impact on the industry.

    Register to secure your place.
    • Early-bird member rate (available until 11 April): £299
    • Early-bird nonmember rate: (available until 11 April): £609
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The world is a dangerous place to live; not because of the people who are evil, but because of the people who don't do anything about it."
--Albert Einstein,
German-born theoretical physicist

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