News Centre

Robust EU/EEA Banking Sector Shows Strong Capital And Liquidity Ratios

Date 04/04/2023

The European Banking Authority (EBA) today published its quarterly Risk Dashboard (RDB) together with the first edition of the RDB on minimum requirement for own funds and eligible liabilities (MREL). Volatility in EU/EEA banks’ equity and debt has been strongly affected by Silicon Valley Bank (SVB) and Credit Suisse related events, although direct exposures of EU/EEA banks towards these banks were limited according to indications from supervisory reporting as of Q4 2022. Banks’ capital and liquidity ratios remain strong and profitability continues to increase.

Joint Trade Associations Response To EC On EU Benchmarks Regulation

Date 04/04/2023

On March 29, 2023, ISDA, the European Association of Corporate Treasurers, the Trade Association for the Emerging Markets, the Futures Industry Association and the Global Financial Markets Association submitted a joint response to the European Commission’s (EC) call for evidence on the review of the scope and third-country regime of the European Union (EU) Benchmarks Regulation (BMR).

CFTC Commissioner Johnson To Participate A Fireside Chat At The City Week 2023 Meeting: Global Challenges Through Innovation

Date 04/04/2023

BIS: Crypto Carry

Date 04/04/2023

Summary

Focus 

The cryptoassets ecosystem has matured to a point where cash and derivative instruments are now actively traded both on native crypto exchanges as well as on traditional exchanges. We study one of the most salient features of these instruments in recent years: the large difference between spot and futures prices, the so-called futures basis or "crypto carry". The crypto carry encapsulates the return on a simple "cash and carry" strategy: going long in the spot market, while selling short in the futures contract. We analyse the crypto carry observed for the two major digital assets, Bitcoin and Ethereum, shed light on its economic drivers, and study how these are connected to the boom-and-bust dynamics often seen in crypto markets.

Moscow Exchange Trading Volumes In March 2023

Date 04/04/2023

In March 2023, total trading volume across Moscow Exchange’s markets made up 26.3% to reach RUB 105.6 trln (RUB 83.6 trln in February 2023). Unless stated otherwise, all figures below refer to performance for March 2023 and all comparisons are with February 2023.

SEC’s OMWI FY 2022 Annual Report Highlights The Agency’s Diversity, Equity, And Inclusion Initiatives And Progress

Date 04/04/2023

The Securities and Exchange Commission’s Office of Minority and Women Inclusion (OMWI) today released its Fiscal Year (FY) 2022 Annual Report to Congress. The report summarizes the SEC’s actions and achievements towards promoting diversity, equity, inclusion, and accessibility (DEIA) in the SEC’s workforce, increasing opportunities for minority-owned and women-owned businesses, and leveraging DEIA for mission effectiveness.

FIA: February 2023 SEF Tracker

Date 04/04/2023

Finansinspektionen Proposes Update To Its Approach For Assessing Pillar 2 Guidance For Swedish Banks

Date 04/04/2023

Finansinspektionen presents a proposal for an update to its approach for assessing the size of the Pillar 2 guidance for Swedish banks. The proposal entails in part new intervals and an upper limit on how much the outcome of the sensitivity-based stress test can contribute to the final guidance. Comments on the proposal should be submitted to FI no later than 2 May.

BIS: Macroprudential Policies For Addressing Climate-Related Financial Risks: Challenges And Trade-Offs

Date 04/04/2023

Highlights

• Macroprudential policies aim to maintain financial stability by increasing the resilience of the financial system (together with the microprudental framework) and containing the accumulation of systemic risks.
• Standard macroprudential instruments (such as capital add-ons on specific exposures) may not always contribute to these objectives when deployed to address the systemic implications of climate-related financial risks, as they could exacerbate transition risks.
• In order to mitigate these potential side effects, authorities need to carefully define the scope of application of such macroprudential policies.
• While overcoming these challenges is an operationally complex task, failure to do so may render such macroprudential policies ineffective and potentially counterproductive for financial stability.

SEC Charges Founder Of Frank With Fraud In Connection With $175 Million Sale Of Student Loan Assistance Company

Date 04/04/2023

The Securities and Exchange Commission today charged Charlie Javice, the founder of the now shuttered student loan assistance company previously known as Frank, with fraud in connection with the $175 million sale of the company to JPMorgan Chase Bank, N.A., (JPMC) in 2021. The SEC’s complaint alleges that Javice orchestrated a scheme to deceive JPMC into believing that Frank had access to valuable data on 4.25 million students who used Frank’s service when in reality the number was less than 300,000.