News Centre

ISDA Submits Letter To FASB On Scope Of Fair Value Option

Date 10/06/2021

On June 8, ISDA submitted a letter requesting that the Financial Accounting Standards Board (FASB) expands the scope of the fair value option that is provided under Topic 825, Financial Instruments to include physical commodity inventories as well as executory contracts related to physical commodities (eg, storage, transportation, non-derivatives purchase or sale contracts) that are managed on a fair value basis. Given the challenges and significant operational cost that exist with applying fair value hedge accounting to the substantial majority of these positions, having an option to measure certain physical commodity inventories and related executory contracts at fair value would provide a practical and simplified solution.

BIS: Basel Committee Consults On Prudential Treatment Of Cryptoasset Exposures

Date 10/06/2021

• Basel Committee issues public consultation on preliminary proposals for the prudential treatment of banks' cryptoasset exposures.
• The proposals split cryptoassets into two broad groups: those eligible for treatment under the existing Basel Framework with some modifications; and others, such as bitcoin, are subject to a new conservative prudential treatment.
• The Committee invites submissions on the proposals by 10 September.

Against Backdrop Of Global Inflation Concerns, FTSE Mondo Visione Index Up 2.5% In May - Up 24.% Over 12 Months

Date 10/06/2021

Despite concerns about global inflation, the FTSE Mondo Visione Index put in a strong performance gaining 2.5% in May, with the index closing the month at 76,327.72 points, up from the April close of 74,469.49.

Moscow Exchange: Risk Parameters On Securities Market

Date 10/06/2021

CCP NCC sets the following risk parameters on Securities market starting from June 11, 2021:

Testimony Of US Deputy Assistant Secretary For Tax Policy Mark J. Mazur To The Subcommittee On Oversight And Subcommittee On Select Revenue Measures, U.S. House Of Representatives

Date 10/06/2021

Chairman Thompson, Chairman Pascrell, Ranking Member Smith, Ranking Member Kelly, and Members of the Subcommittees: Thank you for inviting me to discuss tax compliance and the Administration’s tax compliance agenda. Improving tax compliance can help meet our Nation’s most important tax policy goals: building a tax system that raises adequate revenue in an equitable and efficient manner.

ESAs Publish Amended Technical Standards On The Mapping Of ECAIs

Date 10/06/2021

The Joint Committee of the three European Supervisory Authorities (EBA, EIOPA and ESMA - ESAs) published today two amended Implementing Technical Standards (ITS) on the mapping of credit assessments of External Credit Assessment Institutions (ECAIs).

BIS: Fiscal Regimes And The Exchange Rate

Date 10/06/2021

Summary

Focus

We study how the exchange rate's response to monetary and fiscal policy depends on the fiscal regime. In a Ricardian regime, the government always backs its debt, ie commits to increasing taxes in the future to satisfy its intertemporal budget constraint. In a non-Ricardian regime, the government does not necessarily commit to finance its debt. In this case, the fiscal authority may eventually default or the central bank may accommodate fiscal deficits, creating money and inflating away the debt.

Remarks At Meeting Of Investor Advisory Committee, SEC Commissioner Hester M. Peirce, June 10, 2021

Date 10/06/2021

Thank you, Jennifer [Marietta-Westberg], and the rest of the committee members for holding this meeting today. Thank you also to today’s panelists. Allison [Bennington] and Mina [Nguyen], I appreciate your hard work on this Committee. Your voices will be missed.

Moscow Exchange: Risk Parameters Change For The Security TRNFP

Date 10/06/2021

As per the Securities market risk parameters methodology, on 10.06.2021, 18-20 (MSK) the upper bound of the price band (up to 177650) and initial margins (up to 25 %) for the security TRNFP were changed. New values are available here

BIS: The Accountability Regime Of Banking Supervisors: With Great Power Comes Great Responsibility

Date 10/06/2021

Highlights

• Following the Great Financial Crisis, many supervisors have been tasked with a multitude of new objectives layered atop the core safety and soundness (S&S) mandate, which is difficult to define. Some of these new remits are broad and driven by governmental priorities, clouding the demarcation between prudential and political spheres.
• As supervisory remits multiply and converge with political interests, the potential for conflicts between S&S and other mandates grow. Actions taken by supervisors to fulfil their expanded role affect broader segments of society. This calls for a robust accountability regime to assess supervisors' performance. In practice, such mechanisms are difficult to implement due to challenges in prioritising, defining, measuring, and overseeing multiple supervisory mandates.
• Legislative bodies can strengthen the accountability of supervisors by prioritising the S&S mandate and setting clear objectives that supervisors can report on. The establishment of independent oversight bodies to assess supervisors' performance can further enhance accountability.
• Banking authorities can also foster accountability by publishing statements on their interpretation of S&S and other remits and how they plan to fulfil them. Self-assessments – backed by a range of well designed metrics that consider outcomes – can help stakeholders better evaluate how they deliver the S&S and other remits.
• Robust accountability regimes need to be balanced with mechanisms to shield supervisors' from undue political or industry interference and to preserve their operational independence.