BoE tells banks to raise £25B more in capital | Barclays arranges investor meetings for CoCo issuance | Revamped or new CMBS are in the works in Europe
Web Version
 
28 March 2013
GFMA SmartBrief
News on the global financial markets
SIGN UP|FORWARD|ARCHIVE|ADVERTISE

Morning BellSponsored By
UK should sue over financial-transaction tax, lawmakers say
The EU Committee in the UK House of Lords says the government should take its opposition to Europe's proposed tax on financial transactions to court. "We exhort you to take urgent legal advice on the case for a legal challenge at the European Court of Justice," committee Chairman Lyndon Harrison wrote in a letter to Greg Clark, financial secretary to the Treasury. Reuters (27 Mar.)
Share: LinkedIn Twitter Facebook Google+ Email
As trading across multiple asset classes increases, operating in silos is no longer an effective strategy for optimizing post-trade efficiency, mitigating risk and capitalizing on market opportunities. Learn how leading firms are consolidating their operations, data and technology infrastructure to create a center of excellence for multi-asset, post-trade processing.
Get the FREE WHITEPAPER
 
Industry News
BoE tells banks to raise £25B more in capital
The Bank of England has told lenders that they face a £25 billion capital shortfall but says previously announced plans should cover about half of that. "It's a bit of a damp squib," said Simon Maughan, an analyst at Olivetree Securities. "The banks are going to have until the end of 2013, at least, to do it, and there was no change to the message that they won't need to raise fresh capital or restrict dividend payments." Bloomberg (27 Mar.), The Telegraph (London) (tiered subscription model) (27 Mar.), The Independent (London) (tiered subscription model) (28 Mar.), The New York Times (tiered subscription model)/DealBook blog (27 Mar.)
Share: LinkedIn Twitter Facebook Google+ Email
Barclays arranges investor meetings for CoCo issuance
Barclays is preparing to sell contingent-convertible notes, after the Bank of England told banks that they need to raise a total of £25 billion. "Barclays is reasonably well capitalised compared to its UK and European competitors," said Paul Smillie, an analyst at Threadneedle Asset Management. "If this issuance helps to open up a market for contingent-capital instruments from the British banks, then it will make it easier for them to issue more in the future." Bloomberg (27 Mar.), International Financing Review (free content) (27 Mar.)
Share: LinkedIn Twitter Facebook Google+ Email
Revamped or new CMBS are in the works in Europe
Europe's commercial mortgage-backed securities market is a fraction of what it was in 2006, but a series of new or reworked deals is expected to hit the market soon. Financial Times (tiered subscription model) (27 Mar.)
Share: LinkedIn Twitter Facebook Google+ Email
European lenders see higher funding costs
In the wake of Cyprus' rescue, European banks are finding it more expensive to borrow. On Wednesday, the spread between banks' borrowing costs and Treasury debt hit its highest point since August. "Euro-zone financials are expensive and unattractive," said Andrew Balls, head of European portfolio management at Pacific Investment Management. "And the banking sector in the euro zone remains a source of instability." The Wall Street Journal (27 Mar.)
Share: LinkedIn Twitter Facebook Google+ Email
Stockholders allow LSE to purchase LCH.Clearnet stake
Shareholders of the London Stock Exchange and LCH.Clearnet Group have approved LSE's acquisition of a 57.8% stake in the trans-Atlantic clearinghouse. The deal also has cleared all regulatory and antitrust obstacles, according to the LSE. Financial Times (tiered subscription model) (27 Mar.), FOIntelligence.com (subscription required) (26 Mar.)
Share: LinkedIn Twitter Facebook Google+ Email
Get Creative: 10 Ways to Think Outside the Box
No matter your business, smart solutions come from out-of-the-box thinking. We all know creativity is king, but are you doing all you can to inspire and encourage creativity in your staff? Read the article and learn 10 ways to inspire creativity at your office.

Regulatory RoundupSponsored By
Major European exchanges face possible open-access requirement
The Council of the EU's Irish presidency has proposed requiring the biggest exchanges in Europe to allow trade-feed access by clearinghouses. Trading venues with more than €100 billion in annual securities turnover and €500 billion in derivatives would be subject to the rule, proposed under the revised Markets in Financial Instruments Directive. The Trade News (U.K.) (27 Mar.)
Share: LinkedIn Twitter Facebook Google+ Email
Rule change could hit peripheral banks' capital-raising ability
Peripheral banks could see a fundraising tool closed off because of a proposed change from the Basel Committee on Banking Supervision. The panel is considering adjusting its capital framework to prohibit troubling risk-transfer deals. Reuters/International Financing Review (27 Mar.)
Share: LinkedIn Twitter Facebook Google+ Email
Japan won't buy foreign debt, BoJ's Kuroda says
Bank of Japan Governor Haruhiko Kuroda says the central bank's easing of monetary policy won't include buying foreign bonds, which could be interpreted as an intervention in currency markets. He says the bank is focusing on purchasing Japanese government bonds and riskier assets. Kuroda also warns that Japan's rising debt is "not sustainable". Market News International (27 Mar.), Financial Times (tiered subscription model) (28 Mar.)
Share: LinkedIn Twitter Facebook Google+ Email
Transformational Journeys: Modern Business Planning
Harvard Business Review explores why CFO's and their finance organizations must adapt to the changing landscape of their markets and how big data, organizational collaboration, and new cloud-based planning and analysis technologies are driving successful change.
Click here to access the report.

Spotlight on China
China's 4 leading banks outshine Western rivals
A 21% average return on equity is the 2012 record for China's four largest banks, easily outpacing counterparts in the US and Europe. Regulatory issues and crackdowns on proprietary trading held back Western banks, while Chinese institutions benefited from government interest-rate controls and constraints on foreign-bank operations. Bloomberg (27 Mar.)
Share: LinkedIn Twitter Facebook Google+ Email
GFMA News
GFMA Asian webinar: "Global LEI Developments and Deadlines" -- 3pm Hong Kong time on 8 April
Join us for the next installment of GFMA's webinar series to help financial-market participants prepare for the critical implementation of a global legal-entity identifier. Recently, there have been important developments from the US Commodity Futures Trading Commission, global regulators and the LEI Regulatory Oversight Committee. Further, important deadlines under the CFTC's reporting and record-keeping rule for swaps are quickly approaching. Participate in this timely webinar to receive expert summary and analysis of the latest regulatory developments and initiatives. The next webinar is co-hosted by GFMA and the Hong Kong Investment Funds Association and is scheduled at 3pm Hong Kong time for Asian market participants.
Share: LinkedIn Twitter Facebook Google+ Email
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
Share: LinkedIn Twitter Facebook Google+ Email
SmartQuote
We owe something to extravagance, for thrift and adventure seldom go hand in hand."
-- Jennie Jerome Churchill,
American-born British society figure
Share: LinkedIn Twitter Facebook Google+ Email
Learn more about GFMA ->GFMA | AFMA | ASIFMA | SIFMA
Subscriber Tools
Please contact one of our specialists for advertising opportunities, editorial inquiries, job placements, or any other questions.
 
Lead Editor:  Bridget Lux
Advertising:  Abiy Bekele
  P: 919.931.5915
 
 

Download the SmartBrief App  iTunes / Android
iTunes  Android
Mailing Address:
SmartBrief, Inc.®, 555 11th ST NW, Suite 600, Washington, DC 20004
© 1999-2013 SmartBrief, Inc.®
Privacy policy |  Legal Information