Friday January 16 2015

News Source: Global Exchanges

Focus: Other

Type: General




Participants in the U.S. – EU Financial Markets Regulatory Dialogue (FMRD) met on January 12, 2015 to exchange information on regulatory developments as part of their ongoing dialogue, and discuss their strong cooperation and shared interests in continuing to implement and enforce robust standards, including those on the G-20 financial regulatory agenda.

Discussions on the agenda including topics related to those commitments made by the G-20 Leaders: implementation of Basel III capital, leverage, and liquidity rules; implementation of over-the-counter (OTC) derivatives reforms (including a discussion of cross-border issues); and recent policy developments on cross-border resolution.

Participants also exchanged views on bank structural measures, securitization, money market funds, alternative investment fund managers, benchmarks, information sharing for supervisory and enforcement purposes, the implementation of UCITS reforms, and audit cooperation and macro-prudential oversight.

Capital Markets Union (CMU)
EU participants presented the broad outlines of the EU’s new efforts to facilitate access to market-based finance through the creation of a CMU, which Treasury highlighted as a welcome step towards the development of a more resilient and integrated Single Market.

Derivatives
Participants reiterated the need for all G-20 jurisdictions to continue to address and implement OTC derivatives reforms in a timely manner. Participants also reaffirmed that jurisdictions and regulators should be able to defer to each other, consistent with the St. Petersburg Declaration.

Securitization
Participants discussed securitization, including the Basel Committee for Banking Supervision (BCBS) and International Organization of Securities Commission (IOSCO) consultation paper on criteria for identifying simple, transparent, and comparable securitizations, and EU plans to develop “high quality securitization” (HQS) as a means to increase sources of funding for the EU economy.

Banking
Participants committed to continue cooperation on regulatory standards for internationally active banks, and exchanged views about the implications of the recent report in the framework of the BCBS’s Regulatory Consistency Assessment Programme (RCAP).

Click here for Joint Statement.

Click link above for further details.