Gfma : News on the global financial markets

Regulatory Roundup

Regulatory bias against securitisation appears to be easing
Securitisation has taken a beating during the past few years, but recent policy statements and market-led efforts indicate that the momentum might be changing. The European Central Bank has eased repo rules for asset-backed securities, while the Prime Collateralised Securities initiative, backed by AFME, is moving forward. Reuters/International Financing Review(16 Dec.)

Basel Committee issues templates for capital disclosure
The Basel Committee on Banking Supervision proposed rules for banks to disclose the size and quality of capital buffers starting in 2013. "It is often suggested that lack of clarity on the quality of capital contributed to uncertainty during the financial crisis," the committee said. "Furthermore, the interventions carried out by the authorities may have been more effective if capital positions of the banks were more transparent." Reuters(19 Dec.)

EU officials debate rules for OTC derivatives
EU policymakers are considering legislation that would standardise over-the-counter derivatives contracts so they meet requirements for reporting and clearing. The proposal would force firms with major OTC derivatives positions to send them through central clearinghouses and report them to data centres or trade repositories. The Wall Street Journal/Dow Jones Newswires(19 Dec.)

Fund industry warns of unintended effects of transaction tax
European officials have raised the prospect of levying a tax on financial transactions, but the fund industry is warning about unintended consequences. Financial Times (tiered subscription model)(18 Dec.)

• Other News

ECB cautions about risks to stability of financial system
The Wall Street Journal (19 Dec.)

France demands ESMA get more powers to curb high-frequency trading
Financial Times (tiered subscription model) (19 Dec.)