U.S. SEC Chairman Jay Clayton, U.S. CFTC Chairman J. Christopher Giancarlo, and UK FCA Chief Executive Andrew Bailey issued a joint statement announcing plans to address concerns regarding opportunistic strategies in the credit derivatives markets. The agencies announced that they will make collaborative efforts to prioritize the exploration of avenues, including industry input, that will address these concerns and foster transparency, accountability, integrity, good conduct, and investor protection in these markets.
The statement highlights that the adverse effects of opportunistic strategies in the credit derivatives markets raise various issues under securities, derivatives, conduct, and anti-fraud laws, in addition to the public policy concerns. These opportunistic strategies include but are not limited to those that have been referred to as "manufactured credit events" and they may adversely affect the integrity, confidence, and reputation of the credit derivatives markets. The collaborative efforts of the agencies to address these concerns would not preclude other appropriate actions by the respective agencies or authority.
Related Link: Press Release
Keywords: Americas, Europe, US, UK, Banking, Securities, Credit Derivatives, Credit Risk, Opportunistic Strategies, Supervisory Cooperation, FCA, CFTC, SEC
The European Commission (EC) published the Delegated Regulation 2022/786 with regard to the liquidity coverage requirements for credit institutions under the Capital Requirements Regulation (CRR).
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying the criteria to identify shadow banking entities for the purposes of reporting large exposures.
The European Insurance and Occupational Pensions Authority (EIOPA) published a report assessing insurers' exposure to physical climate change risks
The Network for Greening the Financial System (NGFS) published two reports to aid central banks and regulators in their oversight of the financial sector and in their central bank operations
The European Commission (EC) published the results of a public consultation, held in October 2021, on the review of the Web Accessibility Directive.
The Monetary Authority of Singapore (MAS) and the SC-STS are jointly consulting, until June 10, 2022, on setting adjustment spreads for the conversion of legacy SOR contracts to SORA reference rate.
The Office of the Superintendent of Financial Institutions (OSFI) published the strategic plan for 2022-2025 and the departmental plan for 2022-23.
The European Banking Authority (EBA) is consulting, until August 31, 2022, on the draft implementing technical standards specifying requirements for the information that sellers of non-performing loans (NPLs) shall provide to prospective buyers.
The European Council and the Parliament reached an agreement on the revised Directive on security of network and information systems (NIS2 Directive).
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying information that crowdfunding service providers shall provide to investors on the calculation of credit scores and prices of crowdfunding offers.