Emma Channing’s Post

The European Banking Authority (EBA) and European Securities and Markets Authority (ESMA) have published a discussion paper on the potential review of the investment firms’ prudential framework (#IFD). The discussion paper aims at gathering early stakeholder feedback to inform the response to the European Commission’s call for advice (CfA). The consultation runs until 3 September 2024. To assess the impact of the possible changes discussed in the paper, the EBA also launched a data collection exercise on a voluntary basis. The discussion paper touches upon a broad range of topics, including: > the adequacy of the current prudential requirements, > an analysis of the existing methodology, > risks not covered by the current framework. It also discusses the implications of the adoption of the new EU Banking package (#CRDVI and #CRR3) concerning the trading book, the fundamental review of the trading book (FRTB) and credit valuation adjustments (CVA). Furthermore, prudential consolidation and a possible extension to crowdfunding and crypto-assets service providers are also considered. In this respect, the discussion paper provides an overview of the interaction of IFD/IFR with requirements applicable to undertakings for collective investment in transferable securities (#UCITS) management companies and alternative investment funds managers (#AIFMs) providing #MiFID services on an ancillary basis, or investment firms providing services related to crypto-assets. The discussion paper also covers aspects related to #remuneration in relation to investment firms, AIFMs and UCITS management companies, including the scope of application, remuneration policies, the requirements on variable remuneration, their oversight, disclosure and transparency. Finally, the discussion paper includes a short section on the treatment of firms currently non-prudentially regulated and active in commodity markets. A public hearing will take place via conference call on 20 June 2024 starting at 14:00 CEST.

#UCITS management companies and #AIFMs with MiFID top-up permission should consider section 9 of the attached EBA Call for Advice document. Specifically, the EBA is considering whether the #ownfunds requirements established in UCITS and AIFM directives may not always take into due account the investment services performed by UCITS asset management companies and AIFMs (i.e. individual portfolio management, investment advice, safe-keeping and administration and – for AIFMs only – reception and transmission of orders), thus resulting, in certain cases, in an asymmetric treatment as compared to investment firms providing the same MiFID services and having to set aside corresponding regulatory capital under the K-factors. The EBA document says that there could be two options for the way forward: 1: Impose capital requirements on the UCITS asset management companies and AIFMs providing ancillary services as well, or 2: Introduce requirements limiting the amount of provided ancillary services by UCITS management companies and AIFMs. The Central Bank of Ireland has already addressed this issue and went with Option 1 above. It will be interesting to see where the EBA goes with this. #regulatorycapital Liam O'Mahony, Patrick Farrell, CAIA, Paul Martin, Oisin O'Mahony, Mark Pascenko, Evan Toner, Maria Galan

At TCX we can be quite critical on MDB’s when it comes to USD lending to local currency earners, often focusing on the The World Bank. But credit when credit’s due; we love the new ambition to simplify, improve access and execute faster their Guarantee business! When implemented, it should lead to an increased use of local lcurrency iquidity to finance local currency earners. Crucial to protect them against FX risk. Or, as Damilola Ogunbiyi, CEO of #SE4All, and member of the Private Sector Lab, put it:” The new one-stop-shop platform that has been announced today will not only ensure access to the World Bank Group's guarantee instruments is undertaken in a streamlined manner but will go a long way in enabling local currency lending and supporting decentralized renewable energy projects.” Development Finance can do better. #innovation #capitalmarkets #emergingmarkets

EU Banks and fund managers urge the EU for a reduced repayment timeline 🏦 European banks and fund managers are calling on the EU to make a formal commitment to shortening settlement times for stock and bond trades, urging Brussels to keep pace with the financial modernisation efforts of the US and UK. A task force, led by the AFME (Association for Financial Markets in Europe) and consisting of 18 market lobby groups, has recommended setting a clear timeline for reforms. The task force, which includes organisations such as the European Banking Federation and fund management groups like ICI, AIMA - The Alternative Investment Management Association, and EFAMA, emphasised the importance of aligning these reforms with the UK's approach to ensure a harmonised financial landscape across Europe. Do you agree that the EU should consider accelerating the settlement times for stock and bond trades to better align with global financial modernisation trends?  Read the full article here:  https://lnkd.in/egF8j99V #European #Banking #EFAMA #AFME #AIMA 

The European Investment Bank (EIB) has issued its sixth digital bond, a €100 million fixed-rate note maturing on 22 November 2029. This issuance, which is part of the Eurosystem’s exploration of new technologies for wholesale central bank money settlement, now includes integration with HSBC’s digital assets platform, HSBC Orion.

Reserve Bank of Australia RBA . "Project Acacia – Exploring the Role of Digital Money in Wholesale Tokenised Asset Markets Consultation Paper November 2024 . Preamble This consultation paper has been prepared by the Reserve Bank of Australia (RBA) and the Digital Finance Cooperative Research Centre (DFCRC). It describes a joint research project – ‘Project Acacia’ – to explore how different forms of digital money and associated infrastructure could support the development of wholesale tokenised asset markets in Australia. The paper seeks industry feedback on, and expressions of interest to participate in, the next phase of the project, which will involve exploration and experimentation on approaches to tokenised asset settlement. Project Acacia is overseen by a Steering Committee consisting of senior representatives of the RBA, DFCRC, the Australian Securities and Investments Commission (ASIC), the Australian Prudential Regulation Authority (APRA) and Treasury. An Industry Advisory Group will be established to provide broad-based industry input to the project. This paper seeks expressions of interest from individuals wishing to participate in this group, and describes relevant aspects of Project Acacia as currently proposed by the Steering Committee. However, please note that details of the project may be subject to further consideration and change over the course of the project. Industry stakeholders are invited to: • Respond to the consultation questions in this paper – by completing Part 1 of the Response Template in Appendix A. • Register their interest in participating in the experimental research phase of Project Acacia in 2025 – by completing Part 2 of the Response Template in Appendix A. • Register their interest in joining the Industry Advisory Group for Project Acacia – by completing Part 3 of the Response Template in Appendix A. Submissions are due by Wednesday, 11 December 2024. The RBA and DFCRC welcome engagement with industry stakeholders on this paper during the consultation period. All enquiries and submissions should be directed to [email protected]"... https://lnkd.in/eiRgaHMZ Consultation paper CBDC wCBDC

The Bank for International Settlements – BIS and seven of the world’s most technologically engaged central banks are teaming up with the private sector to explore how #tokenisation – an increasingly hot topic in global finance – can improve the functioning of the monetary system. Banque de France (representing the #Eurosystem), Bank of Japan, Bank of Korea, Banco de México, Swiss National Bank, Bank of England and the Federal Reserve Bank of New York will work together on ‘Project Agorá’, partnering a ‘large group’ of financial companies convened by the Institute of International Finance (IIF), the Washington DC-headquartered global finance industry association. ‘This major public-private partnership will seek to overcome several structural inefficiencies in how #payments happen today, especially across borders,’ Switzerland-headquartered BIS states in the 3 April annoucement. The primary area of exploration will be to increase the speed and integrity of international payments, while lowering costs. https://lnkd.in/eCatMSb2 Global Government Forum Cecilia Skingsley Hyun Song Shin #innovation #tokenization #CBDC #wCBDC #programmability #smartcontracts

Five Years On, Portfolio Trading of European Credit, what next? The development of portfolio trading for European corporates has no smooth start. In the early days, execution quality different, influenced by macro events which withdrew liquidity from the markets as a whole. Today the secenario is different. In this article, James Dale, Co-Head of International Developed Markets at Tradeweb, argues that portfolio trading - and the tools and analytics available for its valuation and execution - will evolve in step with the needs of the markets as European credit markets grow and become more electronic. My question is more, when DeFi overtake from TraFi on the Credit market. More Transparency, more automation... #FixedIncome #Credit #PortfolioTrading #TWEB #Tradeweb #Bonds #LSEG #DigitalBonds #DeFi #DigitalAssets https://lnkd.in/d-ZiZwbZ

iBanFirst Analysis: Eastern European Import-export Companies Move to Fintechs for FX Hedging Solutions Faster Than Their Western Counterparts “As the CEE fintech market enters a phase of growing adoption, we are seeing a major shift in how businesses approach international trade and risk management. This shift is apparent across sectors, as both large corporations and SMEs, even risk-averse businesses, embrace digital tools to streamline operations and gain a competitive edge. At iBanFirst, we are proud to support them in this transformative journey”, said Johan Gabriels, Regional Manager for Central and Eastern Europe at iBanFirst. https://lnkd.in/gTFPYiCb Léa Berdugo Caroline Petersson Johannah Gay Myriam Dakkouni Tanja Biesinger Sarah Perrin #fintech #finance #banking #paytech #payments #fintechnews #paymentsnews

The Asian Infrastructure Investment Bank (AIIB) has issued its first digital native note (DNN) with Euroclear on the Luxembourg Stock Exchange. Citi acted as a dealer as well as issuing and paying agent; BMO Capital Markets was also a dealer. The move is an important step in the evolution of the bond market and the digitalisation of capital markets. For those not yet subscribers, please register to read more after clicking on the link below: #digitalnativenote #bonds #digitalisation #DNN https://lnkd.in/gJ_KYgvM