Gfma : News on the global financial markets

Regulatory Roundup

Maijoor faces significant challenges as ESMA chairman
Steven Maijoor, chairman of the European Securities and Markets Authority, faces a daunting task as the agency aims to create and streamline securities regulations for the EU's 27 members. National regulators' lack of coordination has been problematic, with European officials struggling to gain a clear picture about the performance of credit default swaps and other complicated financial products. "There's a likelihood that the impact on the financial system could have been smaller if we had access to more information," Maijoor said. "Now, we're in a much better position than before the credit crisis." The New York Times (tiered subscription model)/DealBook blog(26 Dec.)

SEC sides with Lehman in dispute with Barclays
Lehman Brothers Holdings gained support from the Securities and Exchange Commission in its asset dispute with Barclays. The US agency said Lehman doesn't have enough funds to repay customers and that Barclays has a conditional claim on money held in reserve. "The commission wishes to ensure that assets held in the special reserve bank account for the exclusive benefit of customers, as well as other assets required to be held for the benefit of customers, are properly administered in the event a broker-dealer is liquidated," the SEC said. Bloomberg(26 Dec.)

• Other News

Japanese regulator ramps up oversight of illegal trading
Bloomberg (26 Dec.)

Spotlight on China

PBOC calls on banks to reduce dependence on rating agencies
Zhou Xiaochuan, governor of the People's Bank of China, encouraged large financial institutions to rein in their reliance on credit ratings from foreign agencies. "Large financial institutions are different from small ones or retail investors," Zhou said. "They should strive to make choices on the basis of their own judgment." China Daily (Beijing)/Xinhua News Agency(26 Dec.)