ESMA Charts Illustrate the Brexit Concentration Risk for Europe

This chart shows without question what a disaster it would be if a legal or regulatory barrier is erected down the English Channel (French: la Manche, "The Sleeve"; German: Ärmelkanal, "Sleeve Channel"; Breton: Mor Breizh, "Sea of Brittany"; Cornish: Mor Bretannek, "British Sea"; Dutch: Het Kanaal, "The Channel").  Whilst Paris and Frankfurt have some significance to volumes in the derivatives markets and have exchanges and CCPs which could process the same products as in the UK, the idea that the majority of trading could jump the channel on March 30th next year is near impossible.

ESMA data analysis values EU derivatives market at €660 trillion with central clearing increasing significantly

The FCA consults on its approach ahead of the UK’s exit from the EU

The Financial Conduct Authority (FCA) today published two consultation papers, setting out its proposals in the event the UK leaves the European Union on 29 March 2019 without an implementation period.  It also set out its approach to the regulation of Credit Rating Agencies, Trade Repositories and Data Reporting Services Providers.

Industry Groups Set Out Impact of Hard Brexit on Derivatives

ISDA, the Association of German Banks (Bundesverband deutscher Banken), the Italian Financial Markets Intermediaries Association (Associazione Intermediari Mercati Finanziari), the Banking and Payments Federation Ireland (BPFI), the Danish Securities Dealers Association (Børsmæglerforening Danmark), the Dutch Banking Association (Nederlandse Vereniging van Banken) and the Swedish Securities Dealers Association (Svenska Fondhandlareföreningen) have jointly published a paper that warns of the disruptive impact of a ‘hard’ Brexit on derivatives markets.

A Solution for Consistency

Earlier this year, when testifying to a US Congressional committee, I proposed a holistic solution to the lack of harmonization between Commodity Futures Trading Commission (CFTC) and Securities and Exchange Committee (SEC) rules.

Ten Years On

Anniversaries are important. They provide an opportunity to look back on important events in the past, and consider how they shaped the present. Ten years on from the collapse of Lehman Brothers, it’s therefore natural that people think back on what happened and ask what has changed.

Brexit white paper and what it means for financial services

24 AUGUST 2018

BCBS 239 – The “Data-Fitness” Hurdle

In May-June 2018, the European Central Bank (ECB) and the Basel Committee on Banking Supervision (BCBS) published reports on the progress of the largest, internationally active banks towards compliance with the BCBS Principles for Effective Risk Data Aggregation and Reporting – known as BCBS 239.

FCA Survey Reveals 10 Times Increase in Firms Affected by IM

The reduction of the IM threshold from €750bn to €8bn will result in a jump of ten times the number of firms in scope.

FX Global Code: do you know what you’re signing up to?

Although the FX Global Code isn’t mandatory, many firms have already signed up. Increasingly it’s looking like becoming the industry norm. In the UK, the FCA has highlighted the code as a way to show compliance with proper standards of market conduct, so potentially an easy boost to a firm’s reputation. But the obligations it brings can be harder than you think. And control failings for those who’ve signed up could have the opposite effect on their industry standing.