US GAO reports on “too big to fail.” The US Government Accountability Office published “Large Bank Holding Companies Expectations of Government Support.” The report reviews the benefits the largest bank holding companies (those with more than US$500 billion in assets) have received from perceived government support and how financial reforms have altered market expectations of government rescues and the existence or size of funding advantages the largest bank holding companies may have received due to perceived government support. GAO found that large bank holding companies had lower funding costs than smaller ones during the financial crisis but models generally suggest that such advantages may have since declined or reversed. (7/31/2014)
OSC seeks comment on trade repository applications. The Ontario Securities Commission published for comment the applications by the Chicago Mercantile Exchange Inc., DTCC Data Repository (US) LLC and Ice Trade Vault, LLC for designation as trade repositories in Ontario. OSC staff have coordinated with the staffs of the Autorités des marchés financiers and the Manitoba Securities Commission in reviewing the applications that are also filed in Québec and Manitoba, and will continue to work with them in finalizing the designation. Comments should be submitted by August 30, 2014. (7/31/2014) OSC press release.
Canadian qualifying central counterparties. The Bank of Canada, Alberta Securities Commission, Autorité des marchés financiers, British Columbia Securities Commission, Manitoba Securities Commission and Ontario Securities Commission jointly published a notice listing the Canadian-domiciled central counterparties which can be considered qualifying central counterparties under the standard on the capital treatment of certain bank exposures to central counterparties developed by the Basel Committee on Banking Supervision. (7/28/2014) Joint press release.