FCA and US Agencies on Addressing Issues in Credit Derivatives Market
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
Previous Article
EC Approves Prolongation of Irish Credit Union Resolution SchemeRelated Articles
APRA Consults on Standard for Reporting of COVID-19 Loans
APRA issued a letter to authorized deposit-taking institutions announcing its intent to formalize the capital measures and reporting requirements for COVID-19 loans through temporary legislative instruments.
EBA Consults Industry on Use and Uptake of Regtech Solutions Across EU
EBA is inviting relevant stakeholders, such as financial institutions and information and communication technology (ICT) third-party providers, to share their views and experience on the use of regtech solutions through its regtech industry survey.
FCA Finalizes Guidance to Extend Measures for Insurers Amid COVID
FCA finalized the guidance extending measures to help customers that hold insurance and premium finance products and are in temporary financial difficulty because of COVID-19 crisis.
BoE Clarifies Approach to Treatment of Payment Holidays on Form PL
BoE published a statistical notice (Notice 2020/9) explaining the approach for treatment of payment holidays on the profit and loss return or Form PL.
FASB to Conduct Post-Implementation Review of CECL Standard
FASB announced the launch of its new Post-Implementation Review (PIR) web portal.
EBA Guidance on Impact of CRR Quick-Fix on Reporting and Disclosures
EBA revised the draft implementing technical standards on supervisory reporting as part of the reporting framework 3.0.
ECB Examines ICAAP Practices of Banks in EU
ECB published report that presents a summary of the analysis conducted on the internal capital adequacy assessment process (ICAAP) practices of a sample of 37 "significant" banks.
EC Proposes to Amend Rules for Financial Benchmarks
EC published a proposal for a regulation that amends the Benchmarks Regulation (2016/1011) regarding the exemption of certain third-country foreign-exchange benchmarks and the designation of replacement benchmarks for certain benchmarks in cessation.
PRA Suspends Relevant Guidance Levels on Fixed Rate Lending Limits
PRA published a letter from Mel Beaman, the Director for UK Deposit Takers, to suspend the relevant guidance levels on fixed rate lending limits in the “Specialist Sourcebook” for an initial period of six months, running from August 01, 2020 to January 31, 2021.
BoE Provides Reporting Update on Form AS and Form FV
BoE updated the known issues document for the statistical reporting Forms AS and FV.
