Week InReview: "Keep Punishing Us" - The Year-End Edition

Quote of the Year | (Oct. 9) "I hope that [the IMF] will keep punishing us and telling us off on what we're doing wrong and telling us to get it sorted out, because that is part of their role." - Jeroen Dijsselbloem, Dutch finance minister and head of euro-area finance ministers' group. (reported by Bloomberg's Rebecca Christie)

G-20 Financial Reform | (Dec. 23) In its "Year in Review: U.S. Progress with G-20 Partners on Key Global Economic Priorities," Treasury said "In response to the global financial crisis, the G-20 created a robust, coordinated agenda for financial regulatory reform and established standards to help strengthen the resilience of the world's financial system.  Throughout the six years since the crisis, the United States has sought to strengthen the global recovery by engaging our partners in a 'race to the top' to improve the quality of regulation and to help level the playing field across major and emerging financial centers." Read more.

Eurex, Affiliates Gain Extended Relief | (Dec. 23) The CFTC Division of Clearing and Risk extended time-limited no-action relief to Eurex Clearing AG and its U.S. clearing members. CFTC staff said it won't recommend enforcement action against Eurex Clearing, which has applied for registration as a derivatives clearing organization, for failure to register as a DCO, or against a U.S. clearing member, for failure to clear certain interest rate swaps through a registered or exempt DCO. The extended relief will expire at the earlier of the date on which Eurex Clearing becomes registered as a DCO with respect to its IRS clearing business or Sept. 30, 2015. The no-action relief is subject to several conditions. To see Staff Letter No. 14-156.

CFTC Filing Relief for CCO Reports | (Dec. 22) The CFTC Division of Swap Dealer and Intermediary Oversight issued a staff advisory providing guidance for chief compliance officers of CFTC registered entities in preparing their annual reports on the registrant's compliance programs. In connection with the advisory, the staff also issued time-limited no-action relief concerning the timing of the filing of the annual report.

To see Staff Letter 14-153.

To see Staff Letter 14-154.

Basel Committee Credit Risk Proposal | (Dec. 22) The Fed, the FDIC, and the OCC will weigh proposals outlined in a Basel Committee on Banking Supervision ("BCBS") consultative paper "with the goal of developing a stronger and more transparent risk-based capital framework for the largest institutions." Proposed changes to U.S. capital rules "will be considered in a manner consistent with the U.S. notice and comment process." Read more.

FYI

SEC | Office of the Investor Advocate FY 2014 Report on Activities (pdf)

SEC | Annual Staff Reports on Credit Rating Agencies

SEC | Annual Report to Congress - June 26, 2013 thru June 25, 2014 (pdf)

This is not an all-inclusive list of congressional, agency and market participant actions related to these issues. It is a snap-shot of what we believe is of most interest to institutional investors. Some links are to subscriber-only sites. 

Be sure to check our website for this InReview, upcoming events, and all our INVESTORS updates.  www.association.institutionalINVESTORS.org