GFMA: News on the global financial markets

Spanish banks borrowed more from ECB in October
Spanish banks borrowed €85.72 billion from the European Central Bank's liquidity window in October, the highest level in more than a year. The increase comes amid heightened tensions in European debt markets. Other institutions have been refusing to lend to banks in Spain and other troubled nations. The Wall Street Journal (tiered subscription model)(14 Nov.)

Deutsche Boerse is in spat with LSE over business model
Deutsche Boerse said the London Stock Exchange is copying its business model of developing an integrated exchange and clearinghouse, despite the LSE's criticism of the model. Financial Times (tiered subscription model)(14 Nov.)

 

Regulatory Roundup

Transaction tax would be catastrophic for Europe, Osborne says
UK Chancellor George Osborne warned that the EU should not implement a tax on financial transactions if other nations, including China and the US, fail to follow suit. "Proposals for a Europe-only financial transactions tax are a bullet aimed at the heart of London," Osborne wrote in a newspaper article. "The ideas of a tax on mobile financial transactions that did not include America or China would be economic suicide for Britain and for Europe." Reuters(14 Nov.)

Swedish banks will face higher capital requirements, Ingves says
Stefan Ingves, chairman of the Basel Committee on Banking Supervision and governor of the Riksbank, said Sweden's largest banks will be held to higher capital standards than mandated by Basel III. "Capital requirements for major Swedish banks need to go beyond the requirements of Basel III," Ingves said. "The costs of higher capital-adequacy requirements are limited and largely private, as opposed to the true economic costs. The advantages in the form of a safer banking system are considerable. A reduced risk of financial crises is good for the real economy, good for taxpayers and also good for the banks' shareholders." Risk.net (subscription required)(14 Nov.)

UK banking reforms should be implemented sooner, FPC member says
Robert Jenkins, a member of the Bank of England's Financial Policy Committee, said reforms of the banking system as called for by the Vickers review should be implemented before a 2019 deadline. "Why are we timid when it comes to financial reform?" Jenkins said. "Is it that we are intimidated by those for whom the reforms are destined?" The Guardian (London)(14 Nov.)

Accounting boards propose rule for revenue recognition
The International Accounting Standards Board and its US counterpart, the Financial Accounting Standards Board, jointly proposed a revenue-recognition rule that would simplify the way companies book revenues. "Revenue is the top line, and it is important to every business," said IASB Chairman Hans Hoogervorst. "Our proposals will give analysts and investors the confidence that revenue is being presented on a consistent basis, across industries and continents." The Wall Street Journal (tiered subscription model)(14 Nov.)

Money market traders say ECB ramped up bond-buying programme
A survey of 16 money market traders found that the European Central Bank likely bolstered its bond-buying programme last week. The traders estimated that the ECB spent €10 billion to buy the debt of peripheral euro-zone countries. Reuters(14 Nov.)