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Shadow Banking Update

On 13 November 2015, the FSB published three reports relating to shadow banking. The first, “Transforming Shadow Banking into Resilient Market-based Finance: Regulatory framework for haircuts on non-centrally cleared securities financing transactions” details qualitative methodologies to be used by market participants that provide securities financing to calculate haircuts on collateral received.  It requires that haircuts […]

Everything you wanted to know about TLAC, but were afraid to ask

The FSB has confirmed the final levels and timeline for the Total Loss-Absorbing Capacity (TLAC) standard for global systemically important banks (G-SIBs), a central element in the Basel III TBTF diet. TLAC sets a minimum requirement for instruments and liabilities that will be available to bail-in a G-SIB undergoing resolution; it acts to set a […]

CCP Workplan: end of the beginning for recovery and resolution

On 22 September 2015, the all-stars of international standard-setting bodies released the 2015 CCP Workplan (dated 15 April 2015), along with a Progress Report. The Workplan was presented to the FSB Steering Committee by the Chairs of the FSB Standing Committee on Supervisory and Regulatory Cooperation, the FSB Resolution Steering Group, the Committee on Payments […]

RIP TBTF? No

Mark Carney has today been widely misreported as hailing the imminent demise of TBTF. Announcing the consultation phase of the FSB’s Total Loss Absorbing Capital (TLAC) proposals, he said, “Agreement on proposals for a common international standard on total loss-absorbing capacity for SIBs is a watershed in ending “too big to fail” for banks. Once […]

G-SIBs 2014- the scores are in

The FSB and BCBS have released the 2014 update of global systemically important banks (G-SIBs) as well as their respective positions in the bucketed list of additional loss absorbency add-on requirements. The BCBS has also separately published the annually updated list of the denominators used to calculate the banks’ scores and the corresponding bucket allocation […]

FSB on Structural Reform- too early to tell, may be trouble ahead

The FSB has published an interesting round-up of structural banking reforms as a report to the G20 Leaders for the November 2014 summit. The short (21 page) report overviews structural reform in the G20 jurisdictions and assesses their consonance and cross-border consistency. While it is a usefully concise summary of the various nascent and ongoing […]

The WM/Reuters 4 pm London fix caught pants down

On 30 September 2014, the FSB published the Final Report on Foreign Exchange Benchmarks, along with the Review of the implementation of IOSCO principles on financial benchmarks in connection with the WM/Reuters 4 pm Closing Spot Rate. Final Report on FX Benchmarks The Final Report contains 15 broad recommendations, covering: WM/Reuters 4pm London fix Central […]

FSB sketches out cross-border resolution

The FSB has released a consultation paper on the cross-border recognition of resolution action. The FSB TBTF report previously identified cross-border legal uncertainty as one of the main stumbling-blocks to the effective resolution of a SIFI subject to multiple jurisdictions. Key Attribute (KA) 7.5 mandates the mutual cross-border recognition of resolution authority and action; existing […]

FSB`s map for OTC deference maze

On 18 September 2014, the FSB published a report on “Jurisdictions’ ability to defer to each other’s OTC derivatives market regulatory regimes”. The FSB member jurisdictions were asked by the FSB Chairman to unlock the secrets of each other`s framework for making equivalency or comparability decisions on matters such as trade reporting, central clearing and […]

Is Brussels setting the table for a move away from LIBOR?

On 10 September 2014, the Presidency of the Council of the EU published its first compromise proposal for regulation on benchmarks. This last version reveals a variety of adjustments since the original proposal published in September a year ago. Although some changes result in a lighter bite for certain benchmark administrators, Brussels is sharpening the knives […]

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