Gfma : News on the global financial markets
11/01/2012 GFMA- Other News
Fitch says it likely won't
cut France's rating this year
The Telegraph (London) (10 Jan.)
European banks embrace bond
markets in first 10 days of 2012
The Wall Street Journal (10 Jan.)
Ireland plans eventual return
to bond markets, minister says
Reuters (10 Jan.)
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FSB might expand definition of "too
big to fail" firms
The Financial Stability Board is considering
broadening the definition of firms deemed "too big to fail" to
include insurers, clearinghouses and domestic banks. The move would
subject such companies to capital rules designed for the largest
financial institutions in the world. "The world contains a whole
slew of institutions like that which are not systemic on a global
level but are on a national level," said Simon Gleeson, a
regulatory lawyer at Clifford Chance. Bloomberg(10 Jan.), Reuters(10 Jan.)
Group questions idea of organised
trading facilities
The European Commission, as part of its overhaul of
over-the-counter derivatives markets, proposed that organised
trading facilities sit between exchanges and OTC contracts.
However, the Federation of European Securities Exchanges said OTFs
would allow financial institutions to avoid tougher rules followed
by exchanges. "The OTF idea is waiving or eliminating some of the
core protections [the Markets in Financial Instruments Directive]
had put on trading venues in terms of access and execution," said
Burcak Inel, FESE's deputy secretary general. "The new MiFID would
create certain trading platforms which are lighter
regulated." Reuters(10 Jan.)
BoJ governor says governments must
implement reforms
Bank of Japan Governor Masaaki Shirakawa said central
banks have been reducing interest rates and buying bonds to help
the economy, but there are limits to what monetary policy can do.
"Providing liquidity as 'a lender of last resort' is, in essence, a
policy to 'buy time,' " Shirakawa said. "It is essential that
the necessary structural reforms take place while time is being
bought, as the time that we can buy becomes progressively more
expensive." Bloomberg(10 Jan.)