GFMA: News on the global financial markets

08/11/2011 | GFMA

European clients of MF Global are frustrated with transfers
A week after MF Global Holdings filed for bankruptcy protection, some European clients are still waiting for their funds to be transferred to another brokerage. "They are still stuck, and no transfers are taking place," an oil broker said. "Our clients are waiting. It's very confusing. We don't know if the positions will be at the original prices or not." Reuters(08 Nov.)

CoCo market is expected to become significantly larger
Some expected the Basel Committee on Banking Supervision's ruling on contingent-convertible bonds and other hybrid securities to kill the market, but such products are expected to take off. Financial Times(tiered subscription model)(06 Nov.)

Other News

European banks still hold many risky assets
The Wall Street Journal (tiered subscription model) (07 Nov.)

  Regulatory Roundup  

World likely won't agree to transaction tax, Cameron says
UK Prime Minister David Cameron said the EU's proposals for a tax on financial transactions are "deeply confused". Cameron is expected to reiterate Britain's opposition. He previously warned that such a tax could drive investment to other jurisdictions, arguing that it would work only if it were global. Reuters(07 Nov.), Google/The Press Association (U.K.)(08 Nov.)

Volcker rule includes compliance regime for non-US banks
The Volcker rule allows non-US banks with American divisions to engage in proprietary trading, as long as they comply with certain requirements. For example, foreign banks must document traders' activities. Bank executives voiced concerns about the rule. "We were stunned when the rule came out. We had no idea it would contain this kind of overreach," said a representative of a European bank. "The obligations that will be placed on entities based overseas will be overly burdensome, to say the least, and I'm not sure how we are going to comply with it." (subscription required)(04 Nov.)

IASB considers tweaking fair-value accounting rule
The International Accounting Standards Board is looking into changing its fair-value rule, otherwise known as International Financial Reporting Standard 9, as the body aims to converge its rules with those used by US companies. "If we are going to consider the [Financial Accounting Standards Board's] position and think what we should do and ask constituents' views, then implicitly we have to contemplate the possibility of reopening IFRS 9 and making changes," said IASB member Stephen Cooper. Reuters(07 Nov.)

Lawmakers call for updated governance of Bank of England
Lawmakers said the Bank of England's accountability and governance need updating. The central bank is poised to gain more authority amid a regulatory overhaul. "The Bank of England will play an even more vital role in preventing future crises, yet aspects of its governance appear antiquated," said Andrew Tyrie, chairman of the Treasury Select Committee. Reuters(08 Nov.), The Wall Street Journal (tiered subscription model)(07 Nov.)