ECB opines on bank structural reform: ECB has delivered its opinion on the Commission's proposal for a Regulation on structural measures improving the resilience of EU credit institutions. It supports the ban on proprietary trading and suggests a clarification that the ban will apply to transactions undertaken in reaction to and in order to exploit market valuations and with the aim of making a profit. ECB also calls for future review of the carve-out from the ban for government bonds and of the risk that could be posed by credit institutions that fall outside the scope of the Regulation but still undertake sizeable high-risk trading. As regards the possibility of mandating separation of trading activities, ECB says that metrics should be complemented by supervisory discretion and other criteria. These other criteria could include considering an institution's "cartography" of trading activities (including information on how they assess the amount of securities inventories they need to meet client demand), its compliance and compensation frameworks, and data such as inventory turnover or trading desk limits. It also suggests a clarification that a core credit institution's permitted market-making should not imperil financial stability. Finally, ECB warns of the risk that a spun-off trading entity may still have systemic impacts, particularly as a result of the concentration that could be brought about by some credit institutions closing economically unviable trading arms. (Source: ECB Opinion on Bank Structural Reform