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24 October 2012
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News on the global financial markets

  Morning Bell 
  • AFME raises concerns about financial-transactions tax
    AFME is raising concerns about a plan by 10 euro-zone nations to tax financial transactions. The financial-transactions tax "is regrettable and likely to serve as another brake on economic growth. In light of the negative impact that a financial transaction tax would have on jobs and growth in Europe, it is disappointing that the proposal is still being considered," AFME said in a statement. The European Commission supports the plan to use a single rule for the tax as a way to help cover the cost of the region's sovereign-debt crisis. Reuters (23 Oct.) LinkedInFacebookTwitterEmail this Story
  Industry News 
  • EU leaders say euro not out of political woods
    Although worries as evidenced in the bond markets have eased in the euro crisis, political hurdles remain that could still endanger the single currency, warned EU President Herman Van Rompuy and Jose Barroso, president of the European Commission. "Some of these issues are extremely difficult from a political and technical point of view, but the decisions should be as urgent as possible," Barroso said. Bloomberg Businessweek (23 Oct.) LinkedInFacebookTwitterEmail this Story
  • Bank of Portugal pushes for mortgage-backed securities
    The Bank of Portugal is encouraging lenders to securitise questionable real estate loans as a way to create greater financing opportunities in the recession-hit economy. Portugal's property market escaped the crisis levels found in Ireland and Spain, and rounding up the shaky loans in a fund would provide the "capacity to finance the economy, boost the prospects of longer-term profitability in the sector and reduce the levels of borrowing by the banking sector with the European Central Bank", the bank said. Reuters (23 Oct.) LinkedInFacebookTwitterEmail this Story
  Regulatory Roundup 
  • UK adviser recommends price dampers over restrictions on HFT
    Pan-European circuit breakers to damp price swings are preferable to tighter restrictions pertaining to the timing of high-frequency trading, says John Beddington, the UK's chief scientific adviser. "The commonly held negative perceptions surrounding high-frequency trading are not supported by the available evidence, but policymakers' concerns are justified about the effect the practise may have in some specific circumstances," Beddington said. He noted that a two-year study across 20 countries found no direct evidence that quicker trading increased volatility or market abuse. Bloomberg (22 Oct.), Financial Times (tiered subscription model) (23 Oct.), Financial News Online (U.K.) (subscription required) (23 Oct.) LinkedInFacebookTwitterEmail this Story
  • SIFMA questions CFTC swap-dealer registration rule
    SIFMA CEO Tim Ryan said at the organisation's annual meeting in New York that the Commodity Futures Trading Commission's plans to make all "non-US persons" register as swap dealers in the US are too extreme. Ryan said the proposal "breaks from standards of international comity by giving US regulators unprecedented regulatory scope over activities taking place in Europe, Asia and other jurisdictions". Securities Technology Monitor (23 Oct.) LinkedInFacebookTwitterEmail this Story
  • Long-sought global accounting standards in danger as boards split
    A split between the International Accounting Standards Board and the US Financial Accounting Standards Board threatens to derail the drive for common standards a decade in the making. The two sides divide over a number of issues, with one of the key sticking points being how to force banks into earlier acknowledgment of losses on bad loans. Reuters (23 Oct.) LinkedInFacebookTwitterEmail this Story
  • Liikanen: UK shouldn't stray too far from EU financial rules
    Erkki Liikanen, the governor of the Bank of Finland and chairman of the eponymous review backed by the European Commission, said that as the UK overhauls its banking system, it must make its measures compatible with rules European regulators are considering. In particular, Liikanen noted that the ring-fencing proposal to separate retail and investment banking goes too far. "I think that Europe and financial markets have to benefit. When you retain the same rules, you benefit. ... If you need to have flexibility, it’'s important to justify it," he said.” Financial News Online (U.K.) (free content) (23 Oct.) LinkedInFacebookTwitterEmail this Story
  • German lawmakers will question ECB's Draghi about bond buying
    European Central Bank President Mario Draghi is set to defend its bond-buying plan in a two-hour session with German lawmakers, many of whom worry the plan could compromise the bank's independence and fuel inflation. The Outright Monetary Transactions programme seeks to lower the borrowing costs of euro-zone countries struggling with large amounts of debt. Reuters (23 Oct.), Bloomberg (23 Oct.), Market News International (23 Oct.) LinkedInFacebookTwitterEmail this Story
  Spotlight on China 
  GFMA News 
  • Joint SIFMA/ISDA/FIA member call: CFTC no-action letters, FAQs and Q-and-A's -- noon Eastern on Thursday
    As the compliance date for several of the Commodity Futures Trading Commission's Title VII rule makings approached on 12 October, the CFTC released a flurry of no-action letters, frequently asked questions and question-and-answer sessions to provide much-needed relief to market participants. These releases covered several rule-making categories, including which swaps to include in de minimis threshold calculations for swaps dealers and major swaps participants, cross-border scope, securitisations, foreign exchange forwards and swaps, and commodity pools and eligible contract participants. SIFMA, the International Swaps and Derivatives Association and the Futures Industry Association will hold a joint member briefing at noon Eastern on Thursday to discuss what relief was provided, whether it goes far enough and what more can be expected. Registration for this call is required. A dial-in number will be provided upon registration. This call is closed to the media and nonmembers. To check your firm's membership status, see these directories: SIFMA full members, SIFMA associate members, ISDA members and FIA members. Or contact SIFMA's Office of Member Engagement at (212) 313-1152 or inquiry@sifma.org. LinkedInFacebookTwitterEmail this Story
  AFME News 
  • Peter Spiegel, Brussels bureau chief for Financial Times, is confirmed as closing keynote speaker at AFME 7th Annual European Government Bond Conference -- 8 and 9 November 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. LinkedInFacebookTwitterEmail this Story
Learn more about GFMA ->GFMA  |  AFME  |  ASIFMA  |  SIFMA

  ASIFMA News 
  SmartQuote 
The ladder of success is best climbed by stepping on the rungs of opportunity."
--Ayn Rand,
Russian-American novelist, philosopher, playwright and screenwriter


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