GFMA: News on the global financial markets
09/11/2011 GFMA- Other News
SocGen plans to slash bonuses
and forgo 2011 dividends
Reuters (08 Nov.)
Deutsche Boerse says 97% of
shareholders approve merger with NYSE
Securities Technology Monitor (08 Nov.)
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Proposal for financial-transaction
tax prompts debate in EU
EU finance ministers continue to debate the idea of
levying a tax on financial transactions, a proposal pushed by
France and Germany in recent months. French President Nicolas
Sarkozy said the tax is financially necessary, technically possible
and morally unavoidable. Other European officials voiced concerns
and questions. The Wall Street Journal (tiered
subscription model)(08 Nov.),
Global Financial Strategy(08 Nov.)
Britain could wield informal veto on
EU financial rules
Mark Hoban, financial secretary to the UK Treasury,
said invoking the Luxembourg Compromise, an informal national veto,
is a possibility for EU rules that would threaten London's stance
as a global financial hub. "Clearly, that is one of the
options that is available to us," Hoban told the Treasury Select
Committee. "We would always hope that our ability to influence and
persuade other member states would mean we would not need to use
that." Legal experts questioned whether the veto would work in
practice. Reuters(08 Nov.)
FSB will focus on regulating shadow
banking, Carney says
Mark Carney, newly appointed head of the Financial
Stability Board, said regulating the shadow-banking industry is a
priority. "There is a possibility, and we've looked at it
seriously, in terms of direct regulation of systemic parts of the
shadow-banking sector, alterations to standards in key elements of
the shadow-banking sector, securitisation is an obvious example,
money market funds," said Carney, who is also governor of the Bank
of Canada. Reuters(08 Nov.)
Basel rules would reduce need for
portability agreements
A need for guaranteed contractual agreements for
porting trades will be reduced if proposed changes to banks'
capital rules regarding central-counterparty exposure are
adopted. "This may make it easier for a client to get
portability and the capital benefit that comes with it. Previously,
you really needed somebody to guarantee it," said Ulrich Karl,
director for regulatory change at HSBC Holdings. "Now, it could be
the case that dealers are more willing to offer portability because
it's not a guarantee." Risk.net (subscription required)(08 Nov.)
- Other News
Wheatley becomes a member of
ESMA's management board
Global Financial Strategy (08 Nov.)
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Shanghai prepares to issue China's
first municipal bonds
The Shanghai government plans to sell three- and
five-year fixed-rate bonds Tuesday as part of a pilot programme in
China to help local governments curtail debt risk. The Ministry of
Finance recently announced that Shanghai, Shenzhen and two
provinces can issue bonds. Xinhuanet.com
(China)(08 Nov.)