Regulation - All articles

  • China lays groundwork for more climate financing, investment

    China’s ecological and financial regulators have jointly published guidelines around climate change-related financing and investment.

    • 07.00 AM
  • ECB can't pick and choose, even for the environment

    An ESG think tank believes that the European Central Bank should drop Alberta’s euro bonds from its list of eligible marketable assets as a punishment for its support for polluting industries. But while it is a laudable aim, it is not practicable.

    • 27 Oct 2020
  • Covid-19 equity raises could be subject of litigation

    Companies raising equity in the UK this year — amid a very uncertain outlook for business prospects — may risk opening themselves up to claims related to the information they disclose or do not disclose, according to lawyers at Herbert Smith Freehills.

    • 26 Oct 2020
  • Markets expect EBA guidance will force action on legacy bank capital

    European banks could be set for a wave of calls and tenders on legacy debt instruments, after the European Banking Authority demanded a clean-up this week. Action may not be immediate, however, with markets still seeking clarity on a number of key issues.

    • 23 Oct 2020
  • China policy and markets round-up: Fiscal revenue returns to growth, Sweden bans Huawei, S&P expands to exchange bond market

    In this round-up, China’s fiscal revenue growth turns positive in the third quarter, Sweden becomes the latest to ban Huawei Technologies from its 5G plan, and S&P Global Ratings’ onshore unit secures a licence to rate domestic bonds in the exchange market.

    • 23 Oct 2020
  • UK moves early to dispel fears about bank capital buffers

    Markets rejoiced this week after the Bank of England proposed policy changes that will make it harder for UK lenders to run into automatic restrictions on their additional tier one coupons and equity dividends. The move was seen as a way of addressing concern about ‘buffer usability’, which has come to the fore during the Covid-19 pandemic.

    • 22 Oct 2020
  • CFTC and BoE tie up clearing agreement

    The US Commodity Futures Trading Commission and the Bank of England signed a memorandum of understanding on Tuesday regarding the oversight of derivatives clearing.

    • 22 Oct 2020
  • BoE to ease MDA rules for UK banks

    The Bank of England said this week that it would loosen some of the rules around the maximum distributable amount for UK banks after Brexit, making it harder for them to trigger restrictions on their additional tier one (AT1) coupons and equity dividends.

    • 21 Oct 2020
  • EBA looks to halt 'infection risk' on legacy capital

    Much of European rule making in wider society has been about preventing infection spreading to the elderly of late. But the European Banking Authority has instead weighed in on the "infection risk" that stems from grandfathered securities.

    • 21 Oct 2020
  • ECB laments lack of CCy cap before Covid

    The European Central Bank said this week that it thought a stronger role for countercyclical capital buffers would be key in making sure that banks use their available resources to boost lending in times of crisis.

    • 20 Oct 2020
  • UK to ditch MREL MDA after Brexit

    The UK government has said that banks will still be able to make investor distributions if they fall below their minimum requirements for own funds and eligible liabilities (MREL) after Brexit — in an early of sign of divergence from the EU rulebook.

    • 19 Oct 2020
  • China revamps 25-year-old commercial bank law

    China has unveiled major revisions to its law governing commercial banks, with the changes set to help strengthen corporate governance and the risk disposal mechanism of domestic lenders.

    • 19 Oct 2020
  • The week in review: China’s economic recovery continues, Beijing rolls out export control law, revamps commercial bank law

    In this round-up, China's economic rebound strengthens in the third quarter, the country’s legislature passes a new law on export control to protect sensitive technology, and the law governing commercial banks faces major revisions.

    • 19 Oct 2020
  • EIB boosts SRT investment commitment by €1bn

    The newly established European Guarantee Fund has greenlit a further €1bn lending for risk sharing products, allowing the EIB to continue investing in significant risk transfer (SRT) transactions to support European SMEs.

    • 16 Oct 2020
  • China policy and markets round-up: CPI inflation slows, September import growth surprises, US mulls sanctions on Ant Group

    In this round-up, China’s September inflation data disappoints, import volume beats expectations by a large margin, and Ant Group might be added to the trade blacklist by the US ahead of its jumbo IPO.

    • 16 Oct 2020
  • ISDA fallback boost gives needed spur to Ibor transiton

    The International Swaps and Derivatives Association broke ground earlier this month in Libor transition when it the US Department of Justice approved its derivatives fallbacks. Market participants now face a busy few weeks working out if the protocol fits their differing needs.

    • 15 Oct 2020
  • ECB's Vansteenkiste engages with green TLTRO idea

    The European Central Bank's Isabel Vansteenkiste welcomed a proposal for green Targeted Longer-Term Refinancing Operations (TLTROs) on Monday, but talked through what she saw as some concerns with the idea.

    • 12 Oct 2020
  • FCA warns on insider information

    Julia Hoggett, director of market oversight at the Financial Conduct Authority, said that market participants need to be careful about insider information, and that companies should be overseeing staff use of private devices at a time when many are working from home.

    • 12 Oct 2020
  • The week in review: Beijing vows to reduce financial crime, Shenzhen eyes more foreign capital, StanChart applies for securities licence

    In this round-up, China wants to improve the quality of domestic listed firms to cut down financial crime, Shenzhen opens the door for increased foreign inflows for the next five years, and Standard Chartered applies to the securities regulator to set up a securities firm onshore.

    • 12 Oct 2020
  • China policy and markets round-up: Beijing joins WHO-led vaccine initiative, September forex reserves drop, Trump resumes China Covid blame

    In this round-up, China joins an initiative backed by the World Health Organization for fair global access to Covid-19 vaccines, the country’s foreign exchange reserves slide, and US president Donald Trump continues blaming Beijing for causing the pandemic.

    • 09 Oct 2020
  • Clash at top of EU over ABS threatens market revival

    The European Commission is facing pushback from the European Parliament over it turning to synthetic securitization — a market that still echoes the 2008 crisis for many legislators — to boost the ABS market and repair Europe’s economy in the aftermath of Covid-19. Tom Brown reports.

    • 08 Oct 2020
  • SRB to allow ‘non-linear’ transition to MREL targets

    The Single Resolution Board (SRB) will not force all banks to make a linear progression towards their minimum requirements for own funds and eligible liabilities (MREL), in an effort to be more flexible during the Covid-19 pandemic. But financial institutions have still called on the authority this week to do more to prevent MREL from becoming a barrier to lending.

    • 08 Oct 2020
  • Bankers balk at London bans for suspect foreign firms

    Suggestions that the UK government is considering a consultation process to give it the power to ban foreign firms from listing on the London Stock Exchange have horrified equity capital markets bankers.

    • 07 Oct 2020
  • Tang proposals ‘fatal’ for synthetic STS

    Dutch MEP Paul Tang has laid out proposals to limit synthetic securitization's ability to achieve the STS label, which sources said could prove fatal to the project of bringing the preferential regulatory status to the risk transfer market.

    • 06 Oct 2020
  • ESMA supports supervision of green bond raters

    Steven Maijoor, chair of the European Securities and Markets Authority (ESMA), has said EU legislation covering green bond reviewers would help ensure the legitimacy of the proposed Green Bond Standard.

    • 05 Oct 2020
  • Meet the Platform: EU green finance watchdog

    The European Union’s formation of its Platform on Sustainable Finance last week marks a new phase in responsible investing. Over the past four years or so, the most influential thinkers in the market, such as the Principles for Responsible Investing, have been quietly moving back to an older interpretation of what RI means: considering the effects of investment choices on others.

    • 05 Oct 2020
  • Insider trading risk delayed ABS deals in early 2020

    Concerns around disclosure of mortgage forbearance figures and payment holidays led to deals scheduled for issuance earlier in 2020 being delayed to later in the year, as issuers feared securitization investors having access to information not widely disseminated to other investors.

    • 05 Oct 2020
  • The week in review: China plans TLAC rules for G-Sibs, September PMIs jump, Nafmii eases Panda sales

    In this round-up, China announces draft regulations for its global systemically important banks, both manufacturing and services activity expand in September, and the regulator for corporate Panda bonds releases details for easier issuance.

    • 05 Oct 2020