Regulation ESMA clarifies format for disclosure of risk factors in prospectuses
The European Securities and Markets Authority (ESMA) has published its final guidelines on how national competent authorities (NCAs) should review risk factors, as required by the new Prospectus Regulation (PR).
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Regulation Solvency II: Advantage convertible bonds
The results of QIS 5 confirmed that convertible bonds bear low capital cost. A balanced-profile convertible bond portfolio with optimized convexity therefore obtains a moderate intrinsic SCR whilst benefiting from «equity» (...)
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Regulation Solvency II: The conventions of the standard model and possible adverse effects
The Solvency II framework will change the way insurance companies address the investments performance in risky assets, by adding a new parameter to the traditional risk / reward tradeoff ....
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Regulation ESMA requires net short position holders to report positions of 0.1% and above
The European Securities and Markets Authority (ESMA) has issued a decision temporarily requiring the holders of net short positions in shares traded on a European Union (EU) regulated market to notify the relevant national competent authority (NCA) if the position reaches or (...)
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Regulation Basel III: regulators seem to ignore market failures
The changes in our regulatory framework (BASEL 3) and the widespread use of inappropriate IFRS rules will not solve the imbalances of the international financial and economic system
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Regulation The Tobin tax
The Tobin tax : a periodically fashionable idea, « miracle cure» that often unleashes passions mostly for ideological reasons than economic. It is necessary to review its relevance by assessing it objectively, and understanding what can make it, in some ways, desirable, but (...)
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Regulation ESMA tells firms to improve their selling practices for complex financial products
The European Securities and Markets Authority (ESMA) has published an Opinion on practices to be observed by investment firms when selling complex financial products to investors. ESMA is issuing this opinion to remind national supervisors and investment firms about the (...)
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Regulation Reconciling bank processing and prudential regulation
The introduction of new liquidity ratios could undermine banking core business
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Regulation EIOPA investigates how ESG and climate risks will be included in Solvency 2
In March 2018, the European Commission adopted an action plan to integrate sustainable finance within the financial system. For this purpose it asked EIOPA and ESMA to submit proposals on how to take ESG and climate risks into account under Solvency 2 and the Insurance (...)
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Regulation Survey of European Insurers Reveals Remaining Challenges to Solvency II Compliance
A significant reliance on third parties for data, sophisticated risk modelling requirements and obtaining sufficiently detailed fund data were among the challenges identified by European insurers in order for them to meet Solvency II requirements, according to new research (...)
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Regulation High Frequency Trading (HFT): Positive for forex market and negative for equities ?
While the AMF and European regulators plan to limit or prohibit HFT, the BSI considers it to be beneficial to the foreign exchange market in normal times and in times of stress...
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Regulation Regulatory outlook: 2011 and beyond
It is well documented that over the past two years the European and US Authorties have made numerous efforts to strengthen the regulatory and supervisory framework that apply to financial activities.
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Regulation Financial transactions taxation is applicable to France
According to the firm 99 Partners Advisory, it is possible, from now, to put in place a tax on financial transactions,
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Regulation OTC transactions on derivative products will require collateral deposits!
The European Union wishes to increase the cost on purely speculative transactions. A proper system would be set up in order to allow non-financial companies to use derivative products for « legitimate» hedging reasons…
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Regulation Towards protection of swaps user margin and more scrutiny on high frequency trading
The SEC is considering whether new requirements should be imposed on high frequency trading and what benefits market makers should get for meeting those obligations. In the meantime the CFTC moves forward to protect swaps user margin from peer (...)
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