Operational risk

Fed releases NPR for US Basel II implementation

The Federal Reserve has released the notice of proposed rulemaking (NPR) for the delayed implementation of Basel II in the US. In this first draft, the Federal Reserve approved a proposal that bank regulators hope will ensure banks maintain prudent…

Fed governor urges comments for NPR

Susan Schmidt Bies, the governor of the US Federal Reserve, has stated the importance of companies’ comments on the NPR on US Basel II implementation, due to be released today. The final NPR is expected to be issued in the Federal Register after all the…

FSA provides overview of approach to CRD

The FSA presented an overview of the authority’s approach to the Capital Requirements Directive (CRD) at its CRD implementation conference. Hector Sants, managing director of wholesale and institutional markets, highlighted the biggest developments in…

The right tool for the job

The use of derivatives and structured products in mutual funds is on the increase, especially since the liberalisation of the UK's authorised collective investment scheme and the introduction of Ucits III. But is the asset management industry equipped to…

End of the line for mass distribution?

The Markets in Financial Instruments Directive, which comes into force in November 2007 across the European market, could spell trouble for distributors that sell structured investments without offering advice. Amanda Lee reports

Seeking risk transfer

In response to regulatory pressures, European insurers are boosting their efforts to transfer risk to the capital markets. Increasingly, insurance firms are using securitisation as part of their capital management strategies. Rachel Wolcott looks at the…

More clarity offered on Mifid

The European Union has published draft implementation rules on its Markets in Financial Instruments Directive (Mifid), giving Europe's financial institutions greater clarity on how to comply with the directive. But some bankers have criticised the…

Banks get stressed

The UK's Financial Services Authority has called on banks to improve stress testing of possible disruptive events, while the Basel Committee declared last year that firms must supplement their value-at-risk models with stress tests. But some bankers…

MiFID Level 2 text on the table

BRUSSELS – In early February, the European Commission tabled formal draft proposals for the Markets in Financial Instruments Directive (MiFID) Level 2 text, detailing new trade reporting and transparency requirements for securities industry participants.

The fat tail

Minh-Tri Nguyen and Martin Ottmann aim to quantify op risk with multi-stage curve fitting and extreme value theory applied with the loss distribution approach

FSA publishes second CRD paper

LONDON – The UK Financial Services Authority indicates its intention to implement both the qualitative and quantitative aspects of the Basel II framework robustly in its new consultation paper on the Capital Requirements Directive , published in late…

Further delays hit US Basel II implementation

WASHINGTON, D.C. – The US process for Basel II was thrown into chaos yet again by the passage of a new law on the Federal Deposit Insurance Corporation that includes provision for a one-year study. The net effect of the legislation is said to be the…

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