CFTC published whitepaper on swaps regulation, which the CFTC Chairman J. Christopher Giancarlo co-authored with CFTC Chief Economist Bruce Tuckman. Mr. Giancarlo unveiled the white paper at the annual meeting of International Swaps and Derivatives Association (ISDA). The whitepaper analyzes the range of academic research, market activity, and regulatory experience with the current implementation of swaps reform by CFTC.
The whitepaper comprehensively examines the areas of swaps' central counterparties (CCPs), swap reporting rules, swap execution rules, swap dealer capital, and end-user exception. It explores and considers a range of improvements to the current reform implementation that is pro-reform, aligned to Congressional intent, and better balances systemic risk mitigation with healthy swaps market activity in support of broad-based economic growth.
The authors seek to optimize the implementation of Dodd-Frank Act by CFTC, with the aim to strike a balance between systemic safety and stability and market vibrancy and economic growth. They explain that financial regulators have a duty to apply the policy prescriptions in ways that enhance markets and their underlying vibrancy, diversity, and resiliency. That duty also includes the responsibility to review past policy applications continuously to confirm that they remain improved for the purposes intended. It further includes anticipating changing market dynamics and the impact of technological innovation.
Keywords: Americas, US, Banking, Securities, Swaps Reform, Systemic Risk, CCPs, Reporting, CFTC Roadmap, CFTC
ECB published Guideline 2021/975, which amends Guideline ECB/2014/31, on the additional temporary measures relating to Eurosystem refinancing operations and eligibility of collateral.
EIOPA published a report, from the Consultative Expert Group on Digital Ethics, that sets out artificial intelligence governance principles for an ethical and trustworthy artificial intelligence in the insurance sector in EU.
HKMA published the seventh and final issue of the Regtech Watch series, which outlines the three-year roadmap of HKMA to integrate supervisory technology, or suptech, into its processes.
EC launched a targeted consultation to improve transparency and efficiency in the secondary markets for nonperforming loans (NPLs).
BIS, Danmarks Nationalbank, Central Bank of Iceland, Norges Bank, and Sveriges Riksbank launched an Innovation Hub in Stockholm, making this the fifth BIS Innovation Hub Center to be opened in the past two years.
FDITECH, the technology lab of FDIC, announced a tech sprint that is designed to explore new technologies and techniques that would help expand the capabilities of community banks to meet the needs of unbanked individuals and households.
EC released the EU Taxonomy Compass, which visually represents the contents of the EU Taxonomy starting with the EU Taxonomy Climate Delegated Act.
FDIC is seeking comments on a rule to amend the interagency guidelines for real estate lending policies—also known as the Real Estate Lending Standards.
EIOPA published its annual report, which sets out the work done in 2020 and indicates the planned work areas for the coming months.
The ESRB paper that presents an analytical framework that assesses and quantifies the potential impact of a bank failure on the real economy through the lending function.