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26 March 2015

108th Brussels for Breakfast

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Hosted by the BBA and organised by the CSFI – with Graham Bishop and Bob Penn (Allen and Overy) and Raoul Ruparel (Open Europe). Main topics included: Grexit, ECJ judgement on ECB/CCP, Brexit, CMU, MiFID and IFRS.


“Greece” has loomed over these discussions for some years as it had such potential to devastate the financial system in 2010/12. Does it have the same power now? Probably not.

The longer term deposits of the Greek banks that are being run off at maturity so the term structure of its liabilities is now very short – thus fragile. Hence the risk of `Graccident’. Would Grexit be the much-feared catastrophe? For Greece, Yes. For the rest of the eurozone, would any other state wish to go even close to the terrible brink that Greece would then have gone over?

UK v ECB on CCPs at the ECJ: raising the risk of Brexit?

The ECJ decision avoided the main issue of location of CCPs but could pit the UK directly against the Euro area – the worst possible outcome. This could happen if the ECB concludes that it has to have the power to oversee payments flows from securities activities and obtains a change in its Statute by a QMV of the euro area that directly outvotes the UK - should it choose to oppose the move.


Commissioner Hill emphasised the role financial markets can play in growth and jobs but argued that Capital Markets Union will not be created through legislation, but with the market’s help to deliver solutions. The ECB’s, Cœuré asked the question: What is the goal of the Capital Markets Union?


The fallout from both MiFID itself and the MiFID II consultation continues apace. ESMA published a peer review on best execution under MiFID and found that the level of implementation of best execution provisions, as well as the level of convergence of supervisory practices by NCAs, is relatively low.

IFRS – spreading far and wide, updates for insurance and pension funds

The IASB summarised which countries are making IFRS obligatory, authorised or prohibited as of the tenth anniversary of the application of IFRS in Europe. This is a remarkable success story for the EU’s role as 96% of states accept IFRS.

Full article for consultancy clients

Webinar of the Brussels for Brunch March 2015

© Graham Bishop

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