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The ratings review finished with both upgrades and downgrades linked to senior bonds now being subordinated to regular deposits
Public pension schemes have sold shares in coal, oil and gas companies but are still funding expansion of the gas industry through infrastructure funds
Key points of contention include the investor sanctions regime and the definition of 'resilience'
European and other regulators are working on reforms to make covered bond funding more efficient
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The Securities Industry and Financial Markets Association is recommending that prudential regulators implementing the Volcker Rule alter their proposal to continue to allow for customer-focused proprietary trading by recasting proposed “hard-coded criteria” as “guidance” for market participants.
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The Securities Industry and Financial Markets Association has called for changes to plans by U.S. exchanges and the Financial Industry Regulatory Authority to revamp market-wide circuit breakers.
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Alternative proposals in Europe for non-equity pre-trade transparency in the Markets in Financial Instruments Directive II will be considered, although it is too early to say what form such rules will take, according to Markus Ferber, Member of the European Parliament, who is heading up MiFID for the Parliament’s Economic and Monetary Affairs Committee.
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Clearing members could be exposed to substantial liquidity risk between different central counterparties in distressed market situations, if the current margin system for central clearing applies to clearable derivatives, according to the International Swaps and Derivatives Association. Some regulatory officials aren’t buying the argument though.
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The U.S. government reached a $25 billion settlement with the nation’s five largest mortgage loan servicers to provide relief to homeowners struggling with their mortgages, as well as payments to the federal and participating state governments.
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If credit default swaps aren’t triggered on Greek debt, the sovereign CDS market will likely break down, according to Nick Pierce, head of fixed income in Europe at Vanguard.