Basel Committee guidelines on weak banks. The Basel Committee on Banking Supervision (Basel Committee) published the final “Guidelines for identifying and dealing with weak banks.” (7/16/2015) BIS press release.
Basel Committee proposes updates to account opening guide. The Basel Committee issued for comment a revised version of the “General guide to account opening,” which was first published in February 2003. The guide is intended to support the Financial Action Task Force standards. Comments should be submitted by October 22, 2015. (7/16/2015) BIS press release.
ISDA makes FpML recommendations. The International Swaps and Derivatives Association (ISDA) issued its recommendation for financial products markup language (FpML) version 5.8. (7/15/2015) ISDA press release.
Basel Committee progress report for supervisory colleges. The Basel Committee issued “Progress report on the implementation of principles for effective supervisory colleges.” The report found considerable progress in the functioning of supervisory colleges in recent years but notes continued challenges faced by supervisors in running effective supervisory colleges. (7/15/2015) BIS press release.
ISDA EMIR classification letter. A new classification letter to help counterparties notify each other of their status for clearing and other regulatory requirements under EMIR has been issued by ISDA. (7/14/2015) ISDA press release.
Financial market infrastructure assessment. The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) announced that they have started the first Level 3 assessment of the implementation of the Principles for financial market infrastructures (PFMI), the international standards for financial market infrastructures (FMIs). This review will examine consistency in the outcomes of PFMI Principles implementation and is part of the CPMI-IOSCO’s monitoring of full, timely and consistent implementation of the PFMI. The review will focus on a subset of requirements under the PFMI that relate to financial risk management by central counterparties including certain practices related to governance, stress-testing, margin, liquidity, collateral, and recovery. (7/9/2015) Joint press release.
IOSCO reports on SME financing. The IOSCO published “SME Financing through Capital Markets,” which provides recommendations for regulators to facilitate capital raising by small and medium sized enterprises (SME) in emerging markets. The report identifies the challenges facing SMEs in accessing market-based financing, and examines some of the successful measures implemented by regulators and other policymakers to assist SMEs in tapping capital markets. (7/9/2015) IOSCO press release.
FSB interim progress report on interest rate benchmark reforms. The Financial Stability Board (FSB) published an interim progress report on reforms to existing major interest rate benchmarks (such as LIBOR, EURIBOR and TIBOR) and in the development and introduction of alternative near risk-free interest rate benchmarks. (7/9/2015) FSB press release.
Basel Committee revises corporate governance principles. The Basel Committee issued “Corporate governance principles for banks,” revised guidance which emphasizes the importance of effective corporate governance for the safe and sound functioning of banks. It stresses the importance of risk governance as part of a bank’s overall corporate governance framework and promotes the value of strong boards and board committees together with effective control functions. (7/8/2015) BIS press release.
Single-name CDS roll recommendation. ISDA recommended an amendment to the single-name credit default swap (CDS) roll frequency. Under the recommendation, single-name CDS transactions would roll to a new “on-the-run” contract on a semiannual, rather than quarterly, basis. (7/8/2015) ISDA press release.