| News on the global financial markets |  |
| Morning Bell |  |  |
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- Global transaction tax is possible, EU official says
EU Tax Commissioner Algirdas Semeta says a global tax on financial transactions eventually should be a reality, as he encouraged US supporters to continue their efforts. The US Treasury Department remains opposed. SIFMA's Payson Peabody says the organisation thinks such a levy could harm US investors. Meanwhile, the head of the Lisbon Stock Exchange has called on the Portuguese government to oppose Europe's proposed tax until all EU members support it. Bloomberg
(26 Feb.), Reuters
(25 Feb.), The Trade News (U.K.)
(25 Feb.)      
| Industry News | | |
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- UK rating downgrade doesn't affect banks' borrowing costs
Moody's Investors Service's downgrade of Britain's sovereign credit rating has not affected the borrowing costs of part-nationalised banks. The financial institutions have reduced their dependence on the bond market, limiting the effect of the rating cut. Reuters
(25 Feb.)
- Spanish exchange eyes Euronext acquisition
If Euronext is sold as part of a merger of NYSE Euronext and IntercontinentalExchange, Bolsas y Mercados Españoles will consider acquiring the European exchange operator, says Javier Hernani, managing director of the Spanish exchange. "We will look at a Euronext deal -- everybody will," Hernani said. "So far, we haven't knocked on anybody's door, but we will look at anything in the market; we always do." The Trade News (U.K.)
(25 Feb.)
- Barclays reportedly considers CoCos to boost assets
Barclays is looking to ask shareholders for permission to sell contingent-convertible bonds, a source says. At a shareholder meeting in April, the bank might seek authorisation to raise £7 billion. CoCos convert to equity shares if Tier 1 assets drop below a predetermined ratio. Bloomberg
(25 Feb.), Reuters
(25 Feb.)
| Regulatory Roundup | | |
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- UK seeks replacement overseer for Libor
The British Bankers' Association has voted to give up supervision of the London Interbank Offered Rate, which the group created in 1986. The UK government says it will establish another administrator for Libor by year-end. GFMA recently sent a letter to a task force run by the UK Financial Services Authority and the US Commodity Futures Trading Commission saying benchmarks don't necessarily need to be based on transaction data. "Provided that a sufficiently robust governance and control framework is in place and there is clear transparency, benchmarks determined under a variety of methods can be of great value to users," according to the letter. Bloomberg Businessweek
(25 Feb.), City A.M. (London)
(26 Feb.), Bloomberg
(26 Feb.)
- EU officials strive for progress on Basel III accord
An EU planning document says Basel III legislation needs to be finished by 22 March to avoid further delays in implementation of the banking standards. Lawmakers and negotiators are poised to meet to work out disagreements on bankers' bonuses, national regulators' authority and reporting requirements. Bloomberg
(26 Feb.)
- German proposal would more tightly regulate HFT
Legislation in Germany would require high-frequency traders to get authorisation from financial regulator BaFin, a coalition source says. The proposal stops short of requiring traders to hold onto purchases for a minimum length of time. Reuters
(25 Feb.)
- UK banks worry FSA split will slow senior-level approvals
The UK Financial Services Authority is set to split into the Prudential Regulatory Authority and the Financial Conduct Authority in April. Banks are concerned that having two regulators will slow down high-level appointments. Any senior-level candidate for controlled functions requires FSA approval, and there is concern that needing two approvals will reverse improved response speed. Reuters/International Financing Review
(25 Feb.)
- Trust in financial system needs rebuilding, Carney says
Mark Carney, governor of the Bank of Canada and head of the Financial Stability Board, says banks and regulators need to ramp up efforts to rebuild trust in the financial industry. "Virtue cannot be regulated. Even the strongest supervision cannot guarantee good conduct," said Carney, who is set to become governor of the Bank of England. "Essential will be the rediscovery of core values, and ultimately this is a question of individual responsibility." Reuters
(25 Feb.)
| AFME News | | |
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- AFME inaugural flagship conference is announced: "Financing Growth"
AFME is pleased to announce its inaugural flagship conference, "Financing Growth: What the new world of regulation means for banks, capital markets and their users", scheduled on 24 September in London. The invitation-only conference will bring together as many as 500 senior decision-makers from Europe's financial industry, along with regulators and politicians, to discuss what needs to be done to enable capital markets to support growth and investment. Further details will be announced in February, including VIP speakers and the historic conference venue.
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