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Regulation

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Liberated issuers will still have to follow European regulations if they want to sell in EU
Public versus private distinction scrapped for disclosure plus new, simplified templates for mature asset classes
Established, well-known corporates could be among the first to use new regime
An accurate picture of liquidity could help London compete for listings
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  • Derivatives counterparties breathed easy in March when the Basel Committee on Banking Supervision and the International Organisation of Securities Commissions announced a year’s delay in the introduction of initial margin rules. But in Europe — with the deadline already passed — legal confirmation has still not appeared.
  • The governments of the UK and the Netherlands are considering tax changes that will impact buy-to-let (BTL) mortgage origination in each country, hitting the two largest markets for BTL RMBS.
  • Bankers in China have raised concerns around regulating Ant Group, which is gearing up for a mammoth dual listing in Hong Kong and the Star board. Although the Alibaba Group Holding-backed firm calls itself a technology company, a big chunk of its revenues come from the financial sector — creating headaches due to the absence of a cohesive regulatory framework for such companies.
  • The European Securities and Markets Authority (ESMA) has said that making sure staff could work remotely hindered the ability of financial firms to work on regulatory and IT projects, in a final report calling for the implementation of a set of rules on settlement discipline — including on mandatory buy-ins — to be delayed until 2022.
  • The Federal Housing Finance Agency (FHFA) has delayed the implementation date of the adverse market refinance fee to December 1, following a wave of criticism from mortgage market participants. With more time to prepare before implementation, sources say the fee is a logical move on the part of the agencies to allow all players in the market to benefit from low mortgage rates, as well as shore up capital to cover losses stemming from the pandemic.
  • In this round-up, China’s official Purchasing Managers’ Index (PMI) for August misses expectations by a small margin, BlackRock becomes the first global asset manager to enter the mutual fund industry onshore, and the sale of TikTok’s US operations faces new challenges as Beijing tightens technology export controls.