News Centre

Bank Of England Financial Stability Paper 32: Estimating The Extent Of The ‘Too Big To Fail’ Problem – A Review Of Existing Approaches – Caspar Siegert And Matthew Willison

Date 13/02/2015

​How big is the ‘too big to fail’ (TBTF) problem? Different approaches have been developed to estimate the impact being perceived as TBTF might have on banks’ costs of funding. One approach is to look at how the values of banks’ equity and debt change in response to events that may have altered expectations that banks are TBTF. Another is to estimate whether debt costs vary across banks according to features that make them more or less likely to be considered TBTF. A third approach is to estimate a model of the expected value of government support to banks in distress. We review these different approaches, discussing their pros and cons. Policy measures are being implemented to end the TBTF problem. Approaches to estimating the extent of the problem could play a useful role in the future in evaluating the success of those policies. With that in mind, we conclude by outlining in what ways we think approaches need to develop and suggest ideas for future research.

TOM MTF Statistics Week 7, 2015

Date 13/02/2015

Click here to download the weekly statistics update of TOM MTF for week 7, 2015. 

Statement On Making The Municipal Securities Market More Transparent, Liquid, And Fair, Commissioner Luis A. Aguilar, U.S. Securities And Exchange Commission

Date 13/02/2015

Introduction

It is difficult to overstate the importance of the municipal securities market. There is perhaps no other market that so profoundly influences the quality of our daily lives. Municipal securities provide financing to build and maintain schools, hospitals, and utilities, as well as the roads and other basic infrastructure that enable our economy to flourish. Municipal bonds’ tax-free status also makes them an important investment vehicle for individual investors, particularly retirees. Ensuring the existence of a vibrant and efficient municipal bond market is essential, particularly at a time when state and local government budgets remain stretched.

Foreign Exchange Professionals Association (FXPA) Elects Board Of Directors, Officers

Date 13/02/2015

The Foreign Exchange Professionals Association (FXPA) held elections on February 10 for its first permanent Board of Directors and Officers. The new FXPA Executive Committee includes: Chair Eric Busay, Portfolio Manager, CalPERS; Vice Chair Adam Cooper, Senior Managing Director and Chief Legal Officer of Citadel LLC; Treasurer Sean Tully, Senior Managing Director, Financial and OTC Products, CME Group; and Secretary William K. Goodbody, Jr, Managing Director, COO & Head of Sales of KCG Hotspot.

CFTC’s Energy And Environmental Markets Advisory Committee To Meet On February 26, 2015

Date 13/02/2015

The U.S. Commodity Futures Trading Commission’s (Commission) Energy and Environmental Markets Advisory Committee (EEMAC) will hold a public meeting on February 26, 2015 from 10:00 am to 4:00 pm at the Commission’s Washington, D.C. headquarters at 1155 21st Street, NW, Washington, DC 20581.

Statement on Passing Of Former SEC Commissioner Harvey J. Goldschmid by SEC Chair Mary Jo White

Date 13/02/2015

Harvey J. Goldschmid had an outstanding career as a lawyer, educator and public servant.  He served the Securities and Exchange Commission with great distinction as a Commissioner, General Counsel and as a Special Senior Advisor to Chairman Arthur Levitt.

Deutsche Börse: Deutsche Börse IPO Indicator Signals Primary Market Upturn

Date 13/02/2015

The climate for IPOs in Germany has considerably improved, according to the IPO sentiment indicator jointly developed by Deutsche Börse and TU Munich. The indicator climbed from 30.1 points to 34.2 points, reflecting buoyant sentiment among investors, companies and underwriters in the primary market.

Tronics Lists On Alternext - Raises €12 Million With Market Capitalisation Of €45.8 Million

Date 13/02/2015

EnterNext, the Euronext subsidiary dedicated to promoting and growing the market for SMEs[1], today congratulated Tronics, a designer and manufacturer of innovative nano- and micro-systems, on its successful listing on Alternext in Paris.

EU Council Backs European Commission Proposal To Fight Against The Manipulation Of Financial Benchmarks

Date 13/02/2015

The EU has today taken a further step towards restoring public trust in financial benchmarks in the wake of recent scandals over the manipulation of the LIBOR and EURIBOR benchmarks. In a move welcomed by the European Commission, the Council has given its backing to new proposed rules to enhance the robustness and reliability of benchmarks, which are used in financial instruments (e.g. bonds, shares, futures or swaps) and financial contracts (e.g. mortgages or consumer contracts) in the EU. The Commission proposed new standards in September 2013 after it emerged that some benchmarks had been manipulated, resulting in multi-million euro fines on several banks in Europe and in the US.

Benchmarks For Financial Instruments: European Council - Council Of The European Union - Agrees Stance On Tighter Controls

Date 13/02/2015

The Permanent Representatives Committee on 13 February 2015 agreed, on behalf of the Council, a negotiating stance on new rules aimed at ensuring greater accuracy and integrity of benchmarks in financial instruments.