Friday, February 20, 2015

ESMA shows flexibility on fixed-income liquidity rules

Bond traders encouraged after MiFID II in Paris

(Feb. 19) The European Securities and Markets Authority said it's open to market proposals for determining bond liquidity, according to the International Capital Market Association ("ISMA") after open hearing on MiFID II in Paris. Classification of bonds as liquid or illiquid determines how transparency rules should be applied.

Fed will act quickly, aggressively on financial stability

Fed governor says regulators to use FSB standard

(Feb. 18) Federal Reserve Governor Jerome Powell, at a NY university event, discussed when bank supervisors should intervene in capital markets to preserve U.S. financial stability. Powell said U.S. regulators will implement Financial Stability Board standard regarding the safety of money market funds when the board completes work on the framework that aims to create cross-border margin standards for money funds.

Smarter proxy packaging, better disclosures

SEC panel urges smarter use of tech, proxy materials

(Feb. 19) Neutrally presented public disclosures of how institutional investors are voting could guide votes and increase retail participation, panelists said at the Securities and Exchange Commission's proxy roundtable. Several panelists also said that confusing ballots and complicated disclosures hamper retail participation in shareholder proxy voting.

Asset managers want EC to scale back harsh rules

Cite disadvantage to overseas rivals and research cutbacks

(Feb. 19) The European Commission, the EU's executive arm, is weighing how far to go in forcing asset managers to separate payments for research from those they make to banks and other brokers to execute trades. The EC plans to publish rules by mid-year as part of its work to overhaul EU financial-market legislation. Final standards could be issued by year-end and take effect in 2017.

UPDATE: IOSCO to publish SIFI doc week of Feb. 23

Another delay on asset managers, activities risk report

Feb. 20) Consultation from the International Organization of Securities Commissioners and the Financial Stability Board (FSB), initially expected late last year, and due to be issued today, is now due to be published the week beginning Feb. 23, according to an IOSCO spokeswoman.

Transparency. Inclusiveness. Consensus.