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GFMA: News on the global financial markets

mercredi 09 novembre 2011 GFMA
  • Other News

SocGen plans to slash bonuses and forgo 2011 dividends
Reuters (08 Nov.)

Deutsche Boerse says 97% of shareholders approve merger with NYSE
Securities Technology Monitor (08 Nov.)

  Regulatory Roundup   
   

Proposal for financial-transaction tax prompts debate in EU
EU finance ministers continue to debate the idea of levying a tax on financial transactions, a proposal pushed by France and Germany in recent months. French President Nicolas Sarkozy said the tax is financially necessary, technically possible and morally unavoidable. Other European officials voiced concerns and questions. The Wall Street Journal (tiered subscription model)(08 Nov.), Global Financial Strategy(08 Nov.)

Britain could wield informal veto on EU financial rules
Mark Hoban, financial secretary to the UK Treasury, said invoking the Luxembourg Compromise, an informal national veto, is a possibility for EU rules that would threaten London's stance as a global financial hub. "Clearly, that is one of the options that is available to us," Hoban told the Treasury Select Committee. "We would always hope that our ability to influence and persuade other member states would mean we would not need to use that." Legal experts questioned whether the veto would work in practice. Reuters(08 Nov.)

FSB will focus on regulating shadow banking, Carney says
Mark Carney, newly appointed head of the Financial Stability Board, said regulating the shadow-banking industry is a priority. "There is a possibility, and we've looked at it seriously, in terms of direct regulation of systemic parts of the shadow-banking sector, alterations to standards in key elements of the shadow-banking sector, securitisation is an obvious example, money market funds," said Carney, who is also governor of the Bank of Canada. Reuters(08 Nov.)

Basel rules would reduce need for portability agreements
A need for guaranteed contractual agreements for porting trades will be reduced if proposed changes to banks' capital rules regarding central-counterparty exposure are adopted. "This may make it easier for a client to get portability and the capital benefit that comes with it. Previously, you really needed somebody to guarantee it," said Ulrich Karl, director for regulatory change at HSBC Holdings. "Now, it could be the case that dealers are more willing to offer portability because it's not a guarantee." Risk.net (subscription required)(08 Nov.)

  • Other News

Wheatley becomes a member of ESMA's management board
Global Financial Strategy (08 Nov.)


  Spotlight on China 

Shanghai prepares to issue China's first municipal bonds
The Shanghai government plans to sell three- and five-year fixed-rate bonds Tuesday as part of a pilot programme in China to help local governments curtail debt risk. The Ministry of Finance recently announced that Shanghai, Shenzhen and two provinces can issue bonds. Xinhuanet.com (China)(08 Nov.)