Go to top
The broad brush: Should FMIs be subject to bank-like RRPs?
Archive
12 Mar
2013

The broad brush: Should FMIs be subject to bank-like RRPs?

Since ‘too big to fail’ changed its name to ‘systemically important’, regulators have been eager to show that they are ready and willing to resolve unviable banks.  Part of this approach has been to champion the virtues of financial market infrastructures (FMIs) such as clearing houses (CCPs), central securities depositories (CSDs) and payment systems.  However, Read More

05 Mar
2013

EU RRPs: What will looser requirements mean for firms?

  • 5th March 2013
  • RegTechFS

Yesterday, 4th March, the Council published a compromise proposal detailing a possible final draft of the Recovery and Resolution Directive (RRD). Firms can breathe a mild sigh of relief as the document relents on some of the most stringent requirements. However, the proposal extends the rules in other areas creating a mixed picture overall. The Read More

18 Feb
2013

G20 update for 2013: from Russia, with love?

The G20 has released its latest progress report following a 15-16 February summit in Moscow – the first meeting under the Russian presidency of the G20. This meeting largely focused on the direction regulation would take in the near future, progress assessment and the effects of reform on the health of long-term investment finance. Overall, Read More

31 Jan
2013

Recovery & Resolution: The operational effects of bail-in

Systemic banks are at various stages in their submission of RRPs to regulators. In the US, tier 1 banks will have already submitted their first plans under Title I of Dodd-Frank, with the other tiers due to submit later in 2013. In the UK, aside from the largest institutions, submission has been delayed multiple times, Read More

28 Jan
2013

The Coming Fragmentation of Cross-Border RRP’s

However, the realisation of such an approach has been stifled by differences between national insolvency regimes and resolution tools. As a result, many assumed that, where such a conflict occurred, national regulators would naturally seek to cooperate on the issue, with one regulator giving sole jurisdiction to the other in order to allow for the Read More

07 Dec
2012

2013: A very new year

  • 7th December 2012
  • RegTechFS

Five years after the crisis started, real change is finally in store. Who is on the naughty and nice lists? In 2012, the industry saw a flurry of financial sector reforms. With over 140,000 pages of regulation produced over the past twenty four months, an ambitious but often discordant global regulatory framework has developed, leaving Read More

16 Nov
2012

RRPs: Operational deluge coming soon for FMIs

With the world’s most systemic banks having made it through the first round of invasive living wills in 2012, regulators now have their sights on the Financial Market Infrastructure (FMI). Central Counterparties (CCPs), payments systems and exchanges will have a lot to do in 2013 and could do well to heed some lessons from their Read More

10 Sep
2012

Systemically Important Financial Institutions

SIFI assessment criteria are becoming increasingly stratified and are coming to financial institutions near you. Higher capital surcharges, ring fencing, ‘unplugging’ and new living will reports are all parts of a solution to combat ‘too big to fail.’ Some economists contend that the banks that are too-big-to-fail enjoy a lower cost of capital because they Read More