| News on the global financial markets |  |
| Morning Bell |  |  |
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| Industry News | | |
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- European banks eye higher capital ratios in recalculating risks
Large European banks are recalculating risks in their trading books and loan portfolios to increase the ratio of capital to risk-weighted assets. Such recalculations are fairly standard, but analysts say some banks are accelerating the move amid increased pressure to bolster capital ratios as Basel III rules start coming into effect. The Wall Street Journal
(21 Feb.)      
- Key nations scuttle debt-pooling deal for euro zone
In a wide-reaching deal, the European Parliament has agreed to drop a demand for a debt-pooling facility to address countries in need. The plan had long been opposed by some nations, including Germany, which prefer to see stricter rules on rising debt to prevent another crisis. Bloomberg
(20 Feb.)
- EU gains further authority to oversee national budgets
The European Commission and the European Parliament have compromised on plans to give the commission powers to review euro-zone members' budgets and request changes if they do not meet the bloc's rules. "This will mean that the euro area can benefit from a more integrated and effective policy-setting framework already for the 2014 budgetary cycle," said Olli Rehn, EU economic and monetary affairs commissioner. Reuters
(20 Feb.)
| Regulatory Roundup | | |
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- Industry groups voice concerns about MiFID provision
Several industry groups have expressed alarm at the creation of a category of organised trading facilities that aims to formalise the structure of over-the-counter trades. The groups see a closing window to influence drafting of the Market in Financial Instruments Directive and wrote to express concern that "the introduction of an OTF for equities will create a two-tier market which risks leaving small and midsize companies behind and compromise a neutral price discovery process". Financial News Online (U.K.) (subscription required)
(20 Feb.)
- BoE was divided in stimulus debate, minutes show
Minutes from the last Bank of England meeting show that despite Governor Mervyn King's public scepticism about increased quantitative easing, he, along with two other policymakers, voted for further bond buying. The minutes also display the central bank's "willingness to bring inflation back to the target over a longer time horizon than usual". Reuters
(20 Feb.), Bloomberg
(20 Feb.), The Wall Street Journal
(20 Feb.)
- Rate cuts must reach beyond euro-zone core, Noyer says
Interest-rate adjustments are effective only if they materially change conditions in the entire euro zone, European Central Bank Governing Council member Christian Noyer says. "The exact level of the ECB's main refinancing rate has been considered to have much less importance because of its low level and because our main problem was transmission [of monetary policy]," he said. The Wall Street Journal
(20 Feb.)
| Spotlight on China | | |
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- PBOC governor reportedly avoids mandatory retirement
Zhou Xiaochuan has reached the required retirement age of 65 but is likely to remain governor of the People's Bank of China, sources say. The plan indicates China's commitment to continuing financial reform and currency integration, analysts say. Reuters
(20 Feb.)
| GFMA News | | |
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- Special event: The Future of Global Financial Benchmarks -- 28 February in NYC
SIFMA invites you to join our global affiliate, GFMA, to hear from Gary Gensler, co-chairman of the International Organisation of Securities Commissions' Board Level Task Force on Financial Benchmarks, in advance of IOSCO guidance expected this spring. Experts will provide an overview of GFMA's Principles for Financial Benchmarks, a collaborative effort by financial institutions worldwide, as well as market implications of change. The financial industry is committed to taking concrete steps to ensure structural changes be made to restore the trust and confidence so vital to effective functioning of markets. Join us to learn more.
| 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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