Press releases

Press releases, latest news and views from EVIA

Article discusses whether key post-crisis regulations have made CCPs the centre point of market risk instead of banks, a decade on from the collapse of Lehman. Article assesses whether the right action is being taken to mitigate systemic risk and the danger that custodial banks might pose in future. Article includes comments from Alex McDonald highlighting the need for political solutions to the remaining risks in financial markets.

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Article outlines the different experiences of trader, bankers, lawyers and brokers on the day of the Lehman collapse in 2008 and includes their reflections on how the collapse changed the path of their career; whether there was anything that could have been done differently; and whether the financial market has become safer since that crisis. Article includes comments from David Clark and Alexander McDonald about their experiences of the global financial crisis and the impact of post-crisis regulations.

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Article reports that ISINs will be matched to their corresponding LEIs to aggregate data and increase transparency, according to a new initiative from the Association of National Numbering Agencies (ANNA) and GLEIF, which has been seen as a key development for risk profiling and will help manage future systemic risks. Article refers to comments from Alex McDonald noting that the FSB’s consultation over the governance framework for UPIs is a reassuring step.

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Article reports that the FSB is moving away from policy-making towards focusing on the full, timely and consistent implementation of the existing reforms and the evaluation of their impact. Article includes comments from David Clark on the processes that global standard setters such as the FSB use, highlighting that they don’t impose capital requirements or regulations without asking banks to stress test the impact on their balance sheets. Mr Clark also notes that the issue of ‘too-big-to-fail’ clearinghouses has been exacerbated by Brexit.

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Article reports that the number of options for a post-Brexit financial services deal is being refined, outlines what these options are and discusses what financial services firms have been doing to prepare for a no-deal Brexit. Article includes comments from David Clark on the strength of the BoE and FCA’s approach to capital rules in comparison to the EU. Article also includes comments from Mr Clark on how it would be simple for the EU to recognise the UK as super-equivalent post-Brexit due to the UK’s regulatory rigour.

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Article reports that market participants are concerned that ‘risk-free’ benchmark rates will not be as effective as Libor as it could cause temporary conflict for derivatives users when transitioning between rates, as well as discussing ISDA’s consultation process in which firms are encouraged to provide their views on its four proposals for adjusted risk-free rates. Article includes comments from David Clark calling for a transitional process that has limited market disruption and highlighting the importance of developing a replacement interest rate curve.

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Article discusses the potential alternatives to Libor, including SOFR, SONIA TONAR and SAR, and how these rates are calculated. Article also includes a 5-step guide from Deloitte’s Treasury Advisory team designed to help firms to prepare for a smooth transition post LIBOR. Article mentions that WMBA introduced SONIA in 1997 and that SONIA is commonly used as an interest rate benchmark for sterling Overnight Indexed Swaps (OIS).

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