GFMA: News on the global financial markets
08/11/2011European clients of MF Global are frustrated with
transfers
A week after MF Global Holdings filed for bankruptcy protection,
some European clients are still waiting for their funds to be
transferred to another brokerage. "They are still stuck, and no
transfers are taking place," an oil broker said. "Our clients are
waiting. It's very confusing. We don't know if the positions will
be at the original prices or not." Reuters(08 Nov.)
CoCo market is expected to become significantly
larger
Some expected the Basel Committee on Banking Supervision's ruling
on contingent-convertible bonds and other hybrid securities to kill
the market, but such products are expected to take off. Financial Times(tiered subscription model)(06
Nov.)
Other News
European banks still hold many risky
assets
The Wall Street Journal (tiered subscription model) (07 Nov.)
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World likely won't agree to transaction tax,
Cameron says
UK Prime Minister David Cameron said the EU's proposals for a tax
on financial transactions are "deeply confused". Cameron is
expected to reiterate Britain's opposition. He previously warned
that such a tax could drive investment to other jurisdictions,
arguing that it would work only if it were global. Reuters(07 Nov.), Google/The Press Association (U.K.)(08
Nov.)
Volcker rule includes compliance regime for non-US
banks
The Volcker rule allows non-US banks with American divisions to
engage in proprietary trading, as long as they comply with certain
requirements. For example, foreign banks must document traders'
activities. Bank executives voiced concerns about the rule. "We
were stunned when the rule came out. We had no idea it would
contain this kind of overreach," said a representative of a
European bank. "The obligations that will be placed on entities
based overseas will be overly burdensome, to say the least, and I'm
not sure how we are going to comply with it." Risk.net (subscription required)(04 Nov.)
IASB considers tweaking fair-value accounting
rule
The International Accounting Standards Board is looking into
changing its fair-value rule, otherwise known as International
Financial Reporting Standard 9, as the body aims to converge its
rules with those used by US companies. "If we are going to consider
the [Financial Accounting Standards Board's] position and think
what we should do and ask constituents' views, then implicitly we
have to contemplate the possibility of reopening IFRS 9 and making
changes," said IASB member Stephen Cooper. Reuters(07 Nov.)
Lawmakers call for updated governance of Bank of
England
Lawmakers said the Bank of England's accountability and governance
need updating. The central bank is poised to gain more authority
amid a regulatory overhaul. "The Bank of England will play an even
more vital role in preventing future crises, yet aspects of its
governance appear antiquated," said Andrew Tyrie, chairman of the
Treasury Select Committee. Reuters(08 Nov.), The Wall Street Journal (tiered subscription
model)(07 Nov.)