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Showing 16921 - 16930 of 17109 matches filtered by 'Banking and finance'

  • Government Office for Science: Economic impact assessments on MiFID II policy measures related to computer trading in financial markets

    06/09/2012
    This working paper presents important interim findings of the international Foresight project entitled “The Future of Computer Trading in Financial Markets”.... In particular, it considers the costs, risks and benefits of six possible regulatory measures which are currently being considered within MiFID II. It precedes the final project report which will be published later in 2012, and which will consider a broader set of issues surrounding computer-based trading over the next ten years. The report found general support from the evidence for the use of circuit breakers, particularly for those designed to limit periodic illiquidity induced by temporary imbalances in limit order books. There is also support for tick size policy across similar markets. It found less support for policies imposing market maker obligations and suggested that minimum resting times can impinge upon hedging strategies which operate by placing orders across markets and expose liquidity providers to increased ‘pick-off risk’ if they are unable to cancel stale order. It found that the effectiveness of proposed measures to require notification of algorithms or minimum order-to-execution ratios were not supported by the evidence and suggested that although an order-to-execution ratio could potentially reduce undesirable manipulative trading strategies, beneficial strategies may also be curtailed..
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  • TSC: Access to cash machines for basic bank account holders

    05/09/2012
    TSC has published a report setting out its conclusions and recommendations on this topic. It recommends that RBS and Lloyds... reconsider its restrictions on access to cash machines for basic bank account holders and welcomes the public commitment given by Barclays, HSBC and Santander to continue to provide basic bank account holders with unrestricted access to cash machines. TSC intends to write to the other institutions that provide basic bank accounts asking them to confirm that that they will continue to offer this service, and that they do not intend to restrict cash machine access for any of their customers and will publish their responses. The report also includes minutes, written evidence and correspondence.
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  • BoE: Speech/paper by Andrew Haldane:The dog and the frisbee (31 August 2012)

    05/09/2012
    In a paper given at the Federal Reserve Bank of Kansas City’s 36th economic policy symposium, Andrew Haldane discussed why the... type of complex financial regulation developed over recent decades may be sub-optimal for crisis control. The paper is co-written with a BoE colleague, Vasileios Madouros. He argued that regulatory responses to financial crises, past and present, have been to increase complexity with: “...a combination of more risk management, more regulation and more regulators”. He suggested that the Basel framework could take: “...a more sceptical view of the role and robustness of internal risk models in the regulatory framework...simplified, standardised approaches to measuring credit and market risk, on a broad asset class basis, could be used.” And called for a new approach to financial supervision, suggesting that it will require more experienced regulators working to a smaller, less detailed rulebook and that greater simplicity and consistency in disclosure practices could also strengthen market discipline.
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  • EC: Consultation on a possible framework for the regulation of the production and use of indices serving as benchmarks in financial and other contracts

    05/09/2012
    Following the recent manipulation of LIBOR, the Commission has today launched a consultation inviting stakeholders to comment on possible new rules... for the production and use of indices serving as benchmarks in financial and other contracts. It covers all benchmarks, not just interest rate benchmarks such as LIBOR but also commodities and real estate price indices for example and it seeks to identify possible shortcomings at every stage in the production and use of benchmarks. The press release notes “all options are on the table but any solution should guarantee that benchmarks are not subject to conflicts of interest, reflect the economic reality that they are intended to measure and are used appropriately”. Responses are required by 15 November 2012.
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  • FSA: Risks to customers from financial incentives/Speech by Martin Wheatley: The incentivisation of sales staff – are consumers getting a fair deal?

    05/09/2012
    FSA has highlighted a speech made by Martin Wheatley at Thomson Reuters today in which he suggested “financial institutions have changed... their view of consumers from someone to serve to someone to sell to … we, as the regulator, intend to change this culture of viewing consumers simply as sales targets and I am going to be personally involved in getting this right. This will be part of the ongoing improvements we make to regulation as we seek to make markets work well and give people a fair deal.” He notes the results of a review of 22 firms which found that “most of the incentive schemes we looked at were likely to drive people to mis-sell in order to meet targets and receive a bonus, and these risks were not being properly managed.”. FSA and FCA will take forward a programme of work to reduce such risks involving further supervisory work, a wider review of incentive schemes, enforcement proceedings, and a “possible strengthening” of rules. The guidance consultation, which contains full details of the review also contains proposed guidance, that FSA wants all authorised firms to consider when setting up and managing incentive schemes in future. and gives a strong indication of how, in the future, FCA will expect firms to treat customers fairly. The proposed guidance applies to all firms that deal with consumers and have sales staff or advisers who are part of an incentive scheme. Responses are required by 31 October 2012.
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  • FSA updates consultation version of approach document to Payment Services Regulations

    04/09/2012
    The FSA has published an updated draft consultation version of its approach document to the Payment Services Regulations 2009
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  • Treasury Committee publishes letters on RBS IT failure

    04/09/2012
    The Treasury Committee today published an exchange of letters between its chairman, Andrew Tyrie MP and the Chief Executive of RBS... Group, Stephen Hester, and between Mr Tyrie and the Chairman of the FSA, Lord Turner, regarding the recent IT failures effecting RBS, Natwest and Ulster Bank customers.
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  • Council compromise proposal on MiFIR dated 31 August 2012

    04/09/2012
    The Presidency of the Council of the EU has published a compromise proposal (dated 31 August 2012) on the proposed Markets... in Financial Instruments Regulation (MiFIR).
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  • Eurozone Crisis tops first day back

    04/09/2012
    Bank supervision, wider economic governance and the European Central Bank's role in stemming the Eurozone crisis dominated discussions on Monday in... parliament
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  • FSA update on progress made on banks' interest rate hedging products review and redress exercise

    04/09/2012
    The FSA has udpated its interest rate hedging products webpage to report on progress made on the review and redress exercise... that a number of banks are currently arranging in relation to their sales of these products to small and medium-sized enterprises.
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