Gfma : News on the global financial markets

Friday 20 January 2012 GFMA

EU should scrap deadline for OTC derivatives reforms, groups say
AFME and other industry groups said the European Securities and Markets Authority doesn't have sufficient time to properly consult and implement rules governing the over-the-counter derivatives market. The groups encouraged the EU to postpone the deadline for reforms. Global Financial Strategy(18 Jan.)

Banks need bespoke accounting rules, BoE official says
Andrew Haldane, executive director for financial stability at the Bank of England, said bespoke accounting rules are needed to clarify the value of assets held on banks' books. Banks' bookkeeping rules exacerbate regulatory and investor uncertainty, Haldane said. Instead, rules need to recognise differences between banks and other kinds of businesses. "A distinct accounting regime for banks would be a radical departure from the past," he said. "But if we are to restore investor faith in banking-sector balance sheets, nothing less than a radical rethink may be required." Reuters(19 Jan.)

Cameron plans to cap bonuses at state-backed banks
British Prime Minister David Cameron outlined plans to limit bonuses at state-backed financial institutions, saying cash rewards in the financial sector have gotten "out of control". Next week, the coalition government plans to explain its proposal for curbing executive compensation, Cameron said. Reuters(19 Jan.), The Wall Street Journal(19 Jan.)