The EU Agency for the Cooperation of Energy Regulators (ACER) and the European Securities and Markets Authority (ESMA) are strengthening their cooperation to further improve information exchange and avoid potential market abuse in Europe’s spot and derivative markets. The two EU agencies have a long-established cooperative relationship considering the interlinkages between spot and derivative energy markets. One of the fora where this cooperation takes place is the Energy Trading Enforcement Forum (ETEF) where the energy National Regulatory Authorities (NRAs), the financial National Competent Authorities (NCAs), ESMA and ACER discuss implementation issues concerning market abuse rules and share their experience in relation to their supervisory activity and enforcement actions to ensure consistency across the EU.  Continue reading…

by Mark Worth

Revealing the inadequacy of the world’s second-oldest whistleblower system, a new report finds UK officials release “scant or no information at all” about what happens to disclosures after citizens submit them. Many UK public agencies that are legally required to investigate whistleblower reports provide “generic or vague” information about their responses to the disclosures, according to the London-based NGO Protect. In a “significant” number of cases, the agencies took “limited or no action” or did not provide enough information about what – if any – action they took when a citizen reported crime or corruption. Continue reading…

The European Banking Authority (EBA) has on 4 November published the final methodology, draft templates and template guidance for the 2023 EU-wide stress test along with the milestone dates for the exercise. The methodology and templates cover all relevant risk areas and have considered the feedback received from industry. The stress test exercise will be launched in January 2023 with the publication of the macroeconomic scenarios. The results will be published by the end of July 2023. Continue reading…

The BIS Innovation Hub is launching a new project around central bank digital currencies (CBDCs) and Decentralised Finance (DeFi) protocols as part of its 2022 work programme. Project Mariana explores automated market makers (AMM) for the cross-border exchange of hypothetical Swiss franc, euro and Singapore dollar wholesale CBDCs. It will seek to examine the potential between financial institutions to settle foreign exchange trades in financial markets. Continue reading…

The FCA expects lenders to learn the lessons from good and poor practice during the coronavirus (Covid-19) pandemic to help borrowers during the cost-of-living squeeze. The FCA acted quickly during the pandemic to put in place guidance that led to more than five million payment deferrals for mortgage and credit customers. This was followed by guidance on tailored support. In a report published on 3 November, the FCA found examples of firms delivering good outcomes for customers – but others must do a lot better to support borrowers in financial difficulty. Just 30% of firms (15 out of 50) it reviewed sufficiently explored customer’s specific circumstances, which meant repayment agreements were often unaffordable and unsustainable. Continue reading…

by Michel Klompmaker

Sometimes I really can’t help myself. What then? I have a need to confine a few things to paper, when in a semi-philosophical mood. This way I can then rid the thought from my head. Why suddenly now, you ask? Well, it was quite the month in my opinion. An exceptionally special month is behind us, and I will try to explain what I have taken away from it, all from a risk perspective, as you can and should expect from this platform.
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Barclays have referred their Decision Notices to the Upper Tribunal. Any findings in the Notices are therefore provisional and reflect the FCA’s belief as to what occurred and how it considers the firms’ behaviour should be characterised. The Financial Conduct Authority (FCA) has decided to fine Barclays a total of £50 million in relation to its failure to disclose certain arrangements agreed with Qatari entities as part of its capital raisings announced on 25 June 2008 and 31 October 2008. Barclays’ conduct in the October capital raising was reckless and lacked integrity. Continue reading…

by Mark Worth

Ten years ago the European Commission tersely said the idea of EU-wide whistleblower rules was out of the question. Today, the Commission is helping to lead the charge for stronger rights for people who report corruption. For evidence of this sharp turnaround, one need look no further than the Commission’s decision to escalate its infringement action against four EU countries that are tardy in passing whistleblower protection laws. On 29 September the Commission warned Austria, Belgium, Romania and Slovenia that they are “failing to fulfil their obligations” to comply with new rules. Continue reading…

The Commission has on 26 October adopted a legislative proposal to make instant payments in euro, available to all citizens and businesses holding a bank account in the EU and in EEA countries. The proposal aims to ensure that instant payments in euro are affordable, secure, and processed without hindrance across the EU. Instant payments allow people to transfer money at any time of any day within ten seconds. This is much faster compared to traditional credit transfers, which are received by payment service providers only during business hours and arrive at the payee’s account only by the following business day, which could take up to three calendar days. Instant payments significantly increase speed and convenience for consumers, for example when paying bills or receiving urgent transfers (e.g. in case of medical emergency). Continue reading…

The Financial Stability Board (FSB) recently published a report on liquidity in core government bond markets. The report forms part of the FSB’s work programme to enhance the resilience of non-bank financial intermediation (NBFI). Changes in core government bond markets over the past decade may have made them more prone to liquidity imbalances in times of stress. The severe dislocations experienced in those markets during the March 2020 turmoil were the outcome of large spikes in the demand for liquidity by various market participants, especially non-banks. Continue reading…