Is this the time for the rise of a centralised Industry Legal Documentation Utility, to streamline the process of putting in place the legal documentation, and standardise terms to minimise the increasing concern around non-standard and commercially impactful terms, from both financial institutions themselves and the regulators?
ESMA has published their MiFID II Final Report as a result of their Consultation Paper. It consists of updates and changes to the 289 page ‘Guidelines’ which provides the industry with, amongst other things, examples and details on how to populate transaction reporting fields in certain circumstances, and a 32 page ‘Final Report’ which summarizes the resultant changes, updates and additions and includes explanations as to why industry feedback was or was not included.
No sooner had the first deadline for the posting of margin on non-cleared derivatives passed than attention had begun to switch to the next set of hurdles.
It goes without saying, I suppose, that financial markets regulation has always been something of a conundrum – the markets have always been global, to a greater or lesser degree, and regulations have always been national or regional. But it does seem that today more than ever the problem is exacerbated. After the financial panic of 2008-09, every regulator and every government seemed to embark on a market reregulation binge, and managed to do it without much regard for what everyone else was doing.
The first meeting has now been scheduled and members of the email list informed, find out how to participate here.
Changes in the leadership team and an investment
Capital is a serious issue, or at least its preservation is. The crisis of ‘07/’08 exposed the financial services industry to tremendous losses to the extent that companies went bust, were taken over or bailed out by government. Ensuing inquiries concluded that excessive levels of risk had been taken in search of reward and that the risk takers were inadequately protected in terms of capital and provided for in terms of liquidity.
Securities financing transactions (SFTs) can contribute to leverage in the financial system. One of the main issues related to leverage is procyclicality, which can manifest itself in many different ways and can incorporate risks for financial stability.
With increasing regularity, I’m hearing more and more banks saying that they are faced with having to do more with less - almost a mantra for our times.
Join an interactive discussion and problem solving forum starting in October.
This has to be one of my favourite articles I've seen for a long time - read the story at ClarusFT (link below), removing EUR from SwapClear has a surprising result, but moving EUR on-shore is a shocker. Bill.
This new information changes the timeline we published previously, see the commentary below from DRS and be prepared for sudden change.
Those in the financial sector have become used to regulatory change over many years, with the recent ‘phase’ arising from the events of 2007 and 2008 not necessarily representing something new, but rather an increase in tempo, albeit a rather significant one.
I wish Millennium and LSEG luck, in what will be the mother of all clearing projects.
A new startup plans to revolutionise the banking industry by replacing CCPs in their entirety
Unlimited trading counterparts and “sources of liquidity”; quite a stark contrast from legacy OTC derivative market infrastructure.
The consultation below is the first stage of moving Europe towards having the equivalent of the US SEFs, under MiFIR.