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Regulation

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  • The RMB passed through another goalpost on its path to inclusion in the International Monetary Fund’s Special Drawing Rights (SDR) facility on Friday, with the IMF staff saying that the currency meets all the criteria to join the basket. The fund's executive board will make the final call on the issue when it meets on November 30.
  • In this round-up, Moscow Exchange sees fall in both spot and swap trading, South Korea deposits drop for sixth consecutive month, and the Swiss franc is now directly convertible with the onshore RMB. Plus, a recap of GlobalRMB’s top stories this week.
  • The European Union has hit a big setback in its drive to overhaul financial market rules, with its chief markets regulator demanding a delay of as much as a year before implementing its flagship regulation, Markets in Financial Instruments Directive (MiFID II). But market participants greeted the reprieve as a welcome and necessary delay.
  • Basel Committee proposals made on Tuesday for the capital treatment of high quality securitizations are set to prolong the regulatory morass that has dogged the ABS market since the financial crisis. Many market participants are wondering when the uncertainty surrounding the market will end, writes David Bell.
  • The Romanian mortgage market is set for growth after local authorities amended its previously unusable covered bond law to bring it into line with the best standards in western Europe.
  • The UK plans to change its rules on bonuses, allowances, and banker pay to reflect the European Banking Authority’s hostility to “allowances” — seen as a tool to circumvent restrictions on the ratio of fixed pay to bonuses.