This week in "Brussels"
06 June 2019
FSB consultation on the resolvability of G-SIBs, ECB's one-off spread between €STR and EONIA, CMU, cross-border cooperation, ESMA urges no-deal Brexit plans set for share trading, MiFID II, Solvency II, European Semester 2019 Spring Package and more.
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Articles from 30 May 2019 - 06 June 2019 |
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Banking Union |
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FSB publicly consults on resolution-related disclosures and on the operationalisation of bank recovery and resolution
FSB published for public consultation two discussion papers that consider measures to improve the resolvability of global systemically important banks (G-SIBs). View Article |
ECB provides a one-off spread between €STR and EONIA
The ECB has calculated the spread between €STR and EONIA based on the methodology as recommended by the Working Group on euro risk-free rates and adopted by the European Money Market Institute (EMMI) for the recalibration of the EONIA methodology as of 2 October 2019. View Article |
Bank of England: Regulatory effects on short-term interest rates
The working paper analyses the effects of EMIR and Basel III regulations on short-term interest rates. View Article |
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Capital Markets Union |
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Financial Times: The EU needs to pick up the pace on capital markets union
Author writes that companies face widely differing costs of credit even within the eurozone. View Article |
IOSCO examines regulatory-driven market fragmentation and considers how to enhance cross-border cooperation
The Board of the International Organization of Securities Commissions published a report that examines instances of regulatory-driven fragmentation in wholesale securities and derivatives markets and considers what actions regulators can take to minimise its adverse effects. View Article |
Financial Times: EU urges London to reveal no-deal Brexit plans for share trading
UK watchdogs need to give investors more advanced warning to prepare for a split in European share trading markets created by a no-deal Brexit, one of Europe’s most senior markets regulators has warned. View Article |
Steven Maijoor addresses FESE 2019 Convention Opening Dinner
ESMA's Chair Maijoor focused on the challenges of cross-border regulation and supervision; on strengthening the EU approach to cross-border regulation and supervision; on the equivalence process; and on Brexit and the exchange of secondary market data. View Article |
Bank of England: The cost of clearing fragmentation
This paper sheds light on the question of fragmentation in clearing by providing direct evidence of the costs associated with it. View Article |
ISDA: Trade life cycle events guide for non-cleared margin
The Trade Life Cycle Events Guide for Non-Cleared Margin was initially established and agreed by market participants through a series of discussions held within the ISDA WGMR Margin and Collateral Processing and Portfolio Integrity Workstreams in 2016. View Article |
CPMI and IOSCO publish for public comment a paper on CCP auctions
The Committee on Payments and Market Infrastructures and the International Organization of Securities Commissions published for public comment A discussion paper on central counterparty default management auctions. View Article |
Financial Times: Fund groups add MiFID top-ups as Brexit fears persist
Global asset managers have been given permission by regulators in Dublin and Luxembourg to set up investment operations outside the UK in moves that could undermine London’s role as Europe’s finance capital. View Article |
ESMA launches a Common Supervisory Action with NCAs on MiFID II appropriateness rules
ESMA is launching a common supervisory action which participant national competent authorities will carry out simultaneously, in the second half of 2019. View Article |
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Insurance |
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EIOPA launches consultation on opinion on sustainability within Solvency II
The draft opinion forms part of EIOPA's strategic activities on sustainable finance and follows a call for opinion from the European Commission. View Article |
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Asset Management |
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OECD: Pension fund assets in the OECD area decline in 2018
Calculated in national currencies, pension fund assets declined in 12 out of 34 reporting OECD countries, including some of the largest pension markets: Japan (-1.1%), the Netherlands (-1.2%), Switzerland (-0.7%), the United Kingdom (-0.3%) and the United States (-5.0%). View Article |
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Corporate Governance/Accounting |
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Accountancy Europe: IAASB’s proposed strategy for 2020-2023 and work plan for 2020-2021
Accountancy Europe has responded to the IAASB’s proposed strategy for 2020-2023 and work plan for 2020-2021. Accountancy Europe broadly supports the proposed strategy and focus, and the strategic actions for 2020-2023. Nevertheless, it has concerns on the deadlines announced that seem unrealistic. View Article |
EFRAG draft comment letter on annual improvements to IFRS standards 2018-2020
EFRAG has published its draft comment letter in response to the IASB's ED/2019/2 Annual Improvements to IFRS Standards 2018-2020 and seeks constituents' views on the proposals View Article |
IASB proposes to update Conceptual Framework reference in IFRS 3
The IASB has published for public consultation proposed narrow-scope amendments to IFRS 3 Business Combinations. The amendments would update a reference to the Conceptual Framework for Financial Reporting without changing the accounting requirements for business combinations. View Article |
European Commission puts forward new rules to support digitalisation and transparency of companies' financial reports
The Commission has put forward new rules to support the digitalisation of corporate reporting and to achieve greater transparency of the yearly information disclosed by companies listed in the EU capital markets. View Article |
ESBG commented on EFRAG draft comment letter on the IASB ED on IBOR
ESBG has published its position paper on the EFRAG Draft Comment letter on the Interest Rate Benchmark Reform Exposure Draft (ED) issued by the IASB on 3 May 2019. View Article |
Investment & Pensions Europe: UK regulator adopts rules to boost stewardship transparency
UK asset managers will be required to publish their policies for engagement with investee companies and annual information on how this has been implemented, or publicly explain why they are not doing so, with effect from next month. View Article |
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Financial Services Policy |
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POLITICO: Commission official: EU plans no more financial supervision takeovers
The European Commission is seeking no more EU takeovers of financial-sector supervision after lawmakers killed recent proposals, a senior official said. View Article |
FSB publishes report on market fragmentation
FSB published a report on market fragmentation and identified several areas for further work to address it. The report was delivered to G20 Finance Ministers and Central Bank Governors ahead of their meetings in Fukuoka on 8-9 June. View Article |
BIS: The role of regulation, implementation and research in promoting financial stability
Keynote address by Mr Agustín Carstens, General Manager of the BIS, at the Bank of Spain and CEMFI Second Conference on Financial Stability. View Article |
POLITICO: TCFD says climate-related financial disclosures are up, but not by enough
Efforts to get companies to disclose climate-related financial risks face “challenges” and companies often fail to make detailed disclosures, according to a global task force report by the Task Force on Climate-related Financial Disclosures. View Article |
ACCA: Cyber and the CFO
ACCA has teamed up with Chartered Accountants Australia and New Zealand (CA ANZ), Macquarie University and Optus to launch the report Cyber and the CFO. The global survey finds cyber security is not managed as a risk to businesses and is too often left to IT specialists to handle. View Article |
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Political |
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Bloomberg: Spain will fill EU vacuum left by UK, Italy, Sanchez says
Acting Spanish Prime Minister Pedro Sanchez pledged the country will boost its influence in European Union institutions and counter what he portrayed as the fading clout of the UK and Italy in Brussels. View Article |
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Economic |
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ECB: Challenges to financial stability increase amid downside risks to the economic outlook
The latest ECB Financial Stability Review highlights that materialisation of downside risks to economic growth could spark greater financial market volatility and bank profitability prospects subdued given slow progress in addressing structural issues. View Article |
POLITICO: Brussels puts Italy on notice for breaching EU spending rules
The European Commission has taken the first step in launching a disciplinary process against Italy over the populist government's defiance of EU spending rules. View Article |
European Semester 2019 Spring Package: Commission issues recommendations to advance sustainable and inclusive economic growth
The Commission presented the 2019 country-specific recommendations (CSRs). It recommended closing the Excessive Deficit Procedure for Spain and adopted a number of documents under the Stability and Growth Pact. View Article |
EU budget 2020: Commission focuses its proposal on jobs, growth and security
The Commission has proposed an EU budget of €168.3 billion for 2020 for a more competitive European economy, and for solidarity and security in the EU and beyond. View Article |
Bloomberg: US-EU talks struggle, threatening a new front in trade war
Even though President Donald Trump held fire earlier this month on auto tariffs that have the potential to further roil Europe’s struggling economy, a succession of domestic dilemmas on both sides of the Atlantic threaten to frustrate efforts at a trade pact before they’ve even begun. View Article |
Volume of retail trade down by 0.4% in euro area
In April 2019 compared with March 2019, the seasonally adjusted volume of retail trade decreased by 0.4% in the euro area (EA19) and by 0.3% in the EU28, according to estimates from Eurostat. View Article |
Euro area unemployment at 7.6%
The euro area (EA19) seasonally-adjusted unemployment rate was 7.6% in April 2019, down from 7.7% in March 2019 and from 8.4% in April 2018. This is the lowest rate recorded in the euro area since August 2008. View Article |
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Graham's tweets |
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© Graham Bishop
Banking Union