Financial Sector Conduct Authority (FSCA)
US banks seek to open vendors’ black box on green data
Inaugural Fed climate scenario analysis flags lack of transparency around third-party models
New risk indicator shifts EU’s G-Sib score heatmap
Revision in substitutability category inflates mid-sized banks’ score, lowers G-Sibs’
Biden approach could leave US behind on crypto regulation
Long timeline of executive order means international community may move faster than US lawmakers
Banks balk at SEC backloading rule
Reporting requirements for expired security-based swaps “not justified”, dealers say
US prime fund swing pricing proposal sparks industry alarm
Some fear SEC rule would repel investors; high liquidity requirements could make funds uneconomic
Litigation threats seen delaying SEC climate disclosure rules
Efforts to demonstrate materiality of exposures to investment decision-making is taking longer than expected, say lawyers
FSB debates how to fit climate risk into capital rules
Regulators ponder whether climate risk needs new RWAs or recalibration of existing ones
Risk managers urge consolidation of climate scenarios
Converging financial and corporate scenarios would provide better data for stress-testing
Could global regulators miss another Archegos whale?
Spotting systemic risk from OTC swaps requires cross-border access to derivatives data
Basel playing catch-up on climate risk, say experts
Individual regulators have already gone further in encouraging transition
At global banks, underwriting activity surged in 2019
JP Morgan led the world with €459.3 billion of transactions
LCH targets hardwired pre-cessation triggers
Proposal aims to align transfer pricing for cleared and bilateral markets in the event of split on ‘zombie Libor’ triggers
Leveraged loan risks concentrated in handful of banks – FSB
US lenders make up 55% of exposures among global banks
Compounded rate out of favour, finds Japan survey
Users prefer forward-looking term rate to replace yen Libor, but dealers bemoan “lack of understanding”
Barclays trims connections to other financial firms
Intra-financial system assets and liabilities drop 19.6% and 13.5%, respectively
Simple models won’t cut it for systemic risk
Understanding interconnectedness and capturing it within models is a key challenge, say quants
US blocking new list of global too-big-to-fail insurers
US wants designation suspended until new, activities-based approach is ready
Fear of something worse seen as key to CCP recovery
Forcing banks to pick up defaulted trades is “viable option”, says Fed researcher
Japan's markets may struggle under weight of TLAC issuance
Japanese banks start to ponder how they will cope with new TLAC rules
Unprepared insurers delay South Africa's risk-based solvency regime
Third quantitative impact study and economic impact study to be launched later this year