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Regulation of the new European Supervisory Authorities. November 2010.
The European Commission (COM) submitted, on september 2009, a proposal for reform of the financial supervision in Europe, which has finally been approved by the Council and the European Parliament. The new supervisory model is composed by the European Systemic Risk Board (ESRB), which will be responsible for risk assessment and supervision to safeguard the stability…
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Proposal for an Omnibus Directive. November 2010.
As a response to the financial crisis, on 23 September 2009, the European Commission approved the creation of a new supervisory structure. The new model involves the creation of the European System of Financial Supervisors (ESFS), consisting of a network that will integrate national supervisors as well as the three new European Supervisory Authorities or…
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European Commission´s proposal on OTC derivaties, CCPs and trade repositories. November 2010.
This proposal, submitted by the European Commission (COM) on 15th September, responds to the EU’s commitments in the G20 and is in line with the approach taken by the USA. The proposed Regulation provides that OTC derivatives should be reported to trade repositories and be accessible to supervisors. There will also be more information available…
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European Commission´s proposal on short selling and CDSs. November 2010.
The European Commission (COM), on september 2009, submitted its legislative proposal on short selling and CDS. This proposal is aimed at ensuring the implementation of coordinated actions under a regulation harmonised at European level, increasing transparency and reducing risks. It will grant national and European authorities the power to restrict or ban transactions in exceptional situations.…
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The Dodd-Frank Wall Street Reform and consumer protection Act. November 2010.
The Dodd-Frank Wall Street Reform and Consumer Protection Act (owes its name to representative Barney Frank and senator Chris Dodd), which was signed into law by president Barack Obama on July 21, 2010, accomplishes the deepest financial reform ever covering almost every aspect of the financial services industry as a response to the worst financial…
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FSB: Principles to reduce reliance on Credit Rating Agencies ratings. November 2010.
The Financial Stability Board (FSB) has published a report that contains principles whose goal is, to reduce the excessive -almost mechanistic- reliance on credit rating agencies (CRA) ratings of Banks, other financial institutions and markets in general. It also pretends to incentivise improvements in independent risk assessment and due diligence capacity, aiming to avoid the…
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Towards an enhanced credit rating agencies supervision in the European Union. July 2010.
The European Commission has put forward, on 2 june 2010, a proposal for a Regulation of the European Parliament and of the Council on amending Regulation 1060/2009, on credit rating agencies. This proposal (also was presented at the G-20 Summit in Toronto on 26-27 2010) will now pass to the European Council of Ministers and…
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Common definition of european money market funds. July 2010.
Some money market funds experienced difficulties in 2008 due to their holdings of certain highly rated asset-backed securities which were downgraded by the relevant rating agencies and which showed a poor level of liquidity. In September 2008, significant levels of redemption activity were witnessed following the Lehman Brothers failure, the general unease in the money…
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SEC: Recent microstructure markets regulatory actions. July 2010.
Since September 2009 the US SEC has been involved in adjusting the microstructure of the US markets. Several hinges have needed refurbishment. The US markets, in any product: equities, bonds, derivatives, have been the first markets in the world that have been subjected to a fierce competition among trading venues. As a result of that…
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Revision and new core Principles. July 2010.
The International Organisation of Securities Commissions (IOSCO) has published 18 new Principles on cross-boarder supervisory cooperation. The release of these principles is due to the growing need to strengthen supervisory and monitoring cooperation of different parties in the markets that perform and carry out cross-boarder activities. IOSCO has released principles regarding some of these, both…
