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☆ Global regulators propose tougher scrutiny of voluntary carbon markets
▼ + stars: | 2023-12-03 | by ( Huw Jones | ) www.reuters.com time to read: +2 min

LONDON, Dec 3 (Reuters) - A global securities watchdog proposed 21 safety measures on Sunday to improve integrity, transparency and enforcement in voluntary carbon markets (VCMs) in a sector of growing importance to efforts to combat climate change. VCMs cover pollution-reducing projects, such as reforestation, renewable energy, biogas and solar power, that generate carbon credits companies buy to offset their emissions and meet net-zero targets. National regulators could require companies to disclose their use of carbon credits, and platforms that trade credits to have better anti-fraud and market manipulation safeguards, IOSCO said. VCMs are separate from government-regulated carbon markets, such as the emissions trading scheme in the European Union, the world's largest. Good practice could include "comprehensive disclosures on the project development process, verification and auditing methodologies, and the entities responsible for measurement, reporting, and verification," IOSCO said.

Persons: Rodrigo Buenaventura, IOSCO, Morgan Stanley, Huw Jones, Barbara Lewis Organizations: Sunday, European Union, Reuters, Thomson Locations: Asia, Europe, Latin America, United States, Dubai

☆ Global regulators to assess if more crypto safeguards needed
▼ + stars: | 2023-11-28 | by ( ) www.reuters.com time to read: +1 min

REUTERS/Dado Ruvic/Illustration/File Photo Acquire Licensing RightsLONDON, Nov 28 (Reuters) - More measures may be needed to stop blow-ups at complex crypto firms like FTX from destabilising the wider financial system, the global Financial Stability Board (FSB) said on Tuesday. The vulnerabilities are similar to those found in traditional finance, including leverage, liquidity mismatches, technology and operational vulnerabilities, the FSB said in a report. Evidence suggests that the threat to wider financial stability and the economy is limited at present, it added. The FSB and IOSCO, a global body of securities watchdogs, have already published this year high level recommendations for supervising crypto activities. Regulators, however, should assess whether these measures adequately stop risks from crypto being amplified across the financial system, the report said.

Persons: Dado Ruvic, FTX, Huw Jones, Kirsten Donovan Organizations: REUTERS, FSB, Thomson

[1/2] A woman shops for groceries at El Progreso Market in the Mount Pleasant neighborhood of Washington, D.C., U.S., August 19, 2022. The U.S. banking sector was in turmoil in the spring as Silicon Valley Bank abruptly collapsed after grappling with large amounts of unrealized losses spurred by rapidly rising interest rates. She said reinflation was a risk, especially if banks do not correctly anticipate interest rate moves and adjust their portfolios appropriately. That led to unrealized losses across the sector coming under closer scrutiny. Global banking and securities regulators are also still grappling with the fallout from the collapse of Credit Suisse Group (CSGC.UL).

Persons: Sarah Silbiger, Ana Arsov, Arsov, reinflation, ” Arsov, Tim Wennes, Paul Servais, Paritosh Bansal Tatiana Bautzer, Megan Davies, Lisa Shumaker, David Gregorio Our Organizations: El Progreso Market, Washington , D.C, REUTERS, Reuters, Banco Santander, Global, Credit Suisse Group, UBS, Jean, International Organization of Securities Commissions, Financial, Swiss, Thomson Locations: Mount Pleasant, Washington ,, U.S, SVB

"There's been very little marking down of (private) assets," said Con Keating, head of research at Brighton Rock Group, an insurance company for pension schemes. "No-one knows where the next big blow-up for pensions will come from," said Henry Tapper, founder of pension market analysis group AgeWage. He said heavy selling of commercial property and private equity stakes by pension schemes is raising questions over private capital valuations. "It's the right approach to obviously put some scrutiny on private market valuations." But in deals where private equity firms and investors buy and sell portfolios of investments, assets are being valued at less.

Persons: Yann Tessier, Con Keating, Henry Tapper, EY's, Paul Kitson, Burgiss, Ben Leach, Willis Towers Watson, IOSCO, Wilfred Small, Sinead Cruise, John O'Donnell, Kirsten Donovan Organizations: City of, REUTERS, Britain's, Authority, Brighton Rock Group, Reuters, Numis Securities, Thomson Locations: City, City of London, Canary, London, Britain, Germany, Sweden

☆ Global watchdog tackles 'vulnerabilities' in leveraged loans
▼ + stars: | 2023-09-14 | by ( Huw Jones | ) www.reuters.com time to read: +2 min

LONDON, Sept 14 (Reuters) - Global securities regulators have proposed tightening how the leveraged loan market operates to tackle "vulnerabilities" after a prolonged period of low interest rates led to deteriorating standards. Leveraged loans are loans extended to companies that already have high debt, and therefore are at a higher risk of default. Global securities watchdog IOSCO said it had identified "some vulnerabilities in the leveraged loan and collateralized loan obligation markets which may be exacerbated by the behavior of certain participants and market practices." Covenant-lite loans now make up 90% of the leveraged loan market, up from just 1% in 2000, IOSCO said in a public consultation paper on its proposed new guidance. U.S. companies have raised more money in private markets than in public markets in each year since 2009, it added.

Persons: IOSCO, Huw Jones, Mark Potter Organizations: Global, Investors, Thomson

☆ Global regulators seek to crack down on decentralised finance
▼ + stars: | 2023-09-07 | by ( Huw Jones | ) www.reuters.com time to read: +2 min

REUTERS/Dado Ruvic/Illustration Acquire Licensing RightsLONDON, Sept 7 (Reuters) - Global securities regulators set out on Thursday their first blueprint to make participants in "decentralised finance" (DeFi)accountable for their actions and safeguard market stability. Such events have seen DeFi shrink from about $180 billion in late 2021 to about $40 billion currently, and the sector is also being used for moneylaundering, IOSCO said. Stakeholders in DeFi and their roles, and the organizational, technological, and communication mechanisms they use, tend to mimic those in traditional finance. Regulators have little standardised data on DeFI, a situation made worse by market participants using multiple pseudonymous addresses to obfuscate their activities, IOSCO said. Regulators should use existing laws or introduce new ones where needed to get a full picture of DeFI, including the identities of people and companies involved, IOSCO said.

Persons: Dado Ruvic, IOSCO, Tuang Lee Lim, Lim, Huw Jones, Frances Kerry Organizations: REUTERS, Terra, Regulators, DeFi, Thomson Locations: DeFi, IOSCO, United States

☆ IMF and regulators set out roadmap to contain crypto risks
▼ + stars: | 2023-09-07 | by ( Huw Jones | ) www.reuters.com time to read: +2 min

LONDON, Sept 7 (Reuters) - Global financial regulators and the International Monetary Fund on Thursday set out a roadmap to coordinate measures that stop cryptoassets from undermining macroeconomic and financial stability. Such risks are exacerbated by noncompliance with existing laws in some instances, the G20's risk watchdog, the Financial Stability Board, and the IMF said in a paper. "Widespread adoption of crypto-assets could undermine the effectiveness of monetary policy, circumvent capital flow management measures, exacerbate fiscal risks, divert resources available for financing the real economy, and threaten global financial stability," the paper said. The paper sets out timelines for members of the IMF and G20 to implement recent recommendations to regulate crypto from the Financial Stability Board and IOSCO, a global group of securities regulators. The tax treatment of cryptoassets should also be spelled out, along with how existing laws apply to the sector.

Persons: Huw Jones, Sharon Singleton Organizations: Global, International Monetary Fund, IMF, European Union, Thomson Locations: cryptoassets, New Delhi

☆ Stock Exchange Regulators Back Global Climate-Reporting Rules
▼ + stars: | 2023-07-25 | by ( Rochelle Toplensky | ) www.wsj.com time to read: +5 min

Regulators of the world’s top stock exchanges gave their backing to the international climate-reporting standards framework Tuesday, adding momentum to efforts to establish the rules as the global baseline. The International Organization of Securities Commissions, known as Iosco, endorsed the International Sustainability Standards Board’s recently published climate reporting standard. While some businesses may be waiting to see the completed SEC climate reporting rules, it hopes the advantages of using a single standard worldwide outweigh any disadvantages of being more demanding than the SEC’s coming climate reporting rules. PREVIEWIt is now up to individual countries and jurisdictions to decide if and when they adopt the ISSB standards. “This is a hugely significant step towards a global baseline of sustainability reporting.

Persons: —, Jean, Paul Servais, Benoit Doppagne, “ Iosco, ”, Larry Bradley, Iosco, PwC, KPMG’s Bradley, “, Rochelle Toplensky Organizations: International Organization of Securities Commissions, International, U.S . Commodity Futures Trading Commission, Securities, Exchange, Zuma, SEC, U.S, EU, KPMG, Sustainable Business, Rochelle Locations: Japan, China, Britain, U.S, Australia, Canada, Hong Kong, Malaysia, New Zealand, Nigeria, Singapore, Glasgow

☆ Global rules leave crypto firms with no place to hide, says G20 watchdog
▼ + stars: | 2023-07-17 | by ( Huw Jones | ) www.reuters.com time to read: +2 min

LONDON, July 17 (Reuters) - Globally agreed rules leave crypto firms with no option but to introduce basic safeguards to prevent the blow-ups seen at FTX exchange and other crypto casualties, the G20's Financial Stability Board said on Monday. The FSB published on Monday final recommendations requested by the G20 on supervising firms that trade cryptoassets such as bitcoin. The watchdog also revised its existing recommendations for stablecoins in light of the demise of TerraUSD/Luna coins. The collapse of FTX in November 2022 highlighted vulnerabilities from crypto firms and the FSB said that all countries should apply the recommendations, even those that are not members of the watchdog. "Therefore, cryptoasset players need to stop operating outside the regulatory perimeter or in non-compliance with existing rules," FSB Secretary General John Schindler told reporters.

Persons: FTX, John Schindler, Schindler, Bitcoin, IOSCO, Huw Jones, Louise Heavens Organizations: Ripple Labs, European Union, FSB, Thomson Locations: FTX, Bahamas, Basel

☆ Regulators tighten screw on investment fund redemptions
▼ + stars: | 2023-07-05 | by ( Huw Jones | ) www.reuters.com time to read: +3 min

Central banks had to inject liquidity into markets in March 2020 during COVID-19 lockdowns as money market funds struggled in the face of a "dash for cash" to meet promises of daily redemptions. Property funds aimed at retail investors have also been offering daily redemptions and some have faced multiple suspensions in recent years due to market turbulence. For funds that invest over 50% in liquid assets, daily dealing would remain appropriate. Funds that invest mainly in less liquid assets could still offer daily redemptions if they can show regulators an ability to use specified "anti-dilution" liquidity management tools (LMTs), or else they must tighten redemption terms, the FSB said. LMTs include being able to deduct a fee from redemptions to end "first-mover advantage", or investors who rush for the exits leaving those remaining worse off.

Persons: IOSCO, Martin Moloney, Huw Jones, David Holmes, Christina Fincher Organizations: Industry, IMF, ICI, Thomson Locations: COVID, redemptions

☆ Curb use of dollar Libor alternatives to Fed rate, says watchdog
▼ + stars: | 2023-07-03 | by ( Huw Jones | ) www.reuters.com time to read: +2 min

LONDON, July 3 (Reuters) - The use of four dollar-denominated alternatives to the now scrapped Libor interest rate need restrictions to avoid threatening financial stability, a global securities watchdog said on Monday. The final dollar-denominated London Interbank Offered Rate or Libor was published last Friday. Several so-called credit sensitive rates (CSRs) and term SOFR rates are being offered as alternatives to SOFR, which has no forward 'terms' or credit component, though volume in them has been low. SOFR term rates also fell short of IOSCO standards given they rely on the continued existence of a deep and liquid derivatives market, IOSCO said. "Administrators should consider licensing restrictions for use of CSRs and Term SOFR rates within certain products or by certain user groups," IOSCO said.

Persons: Libor, IOSCO, Huw Jones, Conor Humphries Organizations: U.S . Securities, Exchange Commission, London, Federal Reserve, Regulators, Thomson

☆ Pro Take: Forget the SEC, International Climate Reporting Standards Could Become the Global Baseline
▼ + stars: | 2023-06-26 | by ( Rochelle Toplensky | ) www.wsj.com time to read: +8 min

New international sustainability reporting standards could fulfill their ambition in becoming the global baseline as the advantages of using a single standard worldwide may, for many companies, outweigh the disadvantages of being more demanding than the SEC’s coming climate reporting rules. On Monday, the International Sustainability Standards Board released its initial two reporting standards. PREVIEWDespite the strong demand for one standard, U.S. and European Union officials are each developing their own climate reporting regimes. It is now up to individual countries and jurisdictions to decide if and when they will adopt the ISSB standards. Sue Lloyd, vice chair of the International Sustainability Standards Board, at the launch of the inaugural sustainability standards.

Persons: Sue Lloyd, ”, Brian Moynihan, Lloyd, Um, Lysanne Gray, Eelco van der Enden, Jean, Paul Servais, Benoit Doppagne, Iosco, Unilever’s Gray, Rochelle Toplensky, Amplifications Iosco Organizations: Sustainability, Task Force, Sustainable Business, European Union, International Organization of Securities Commissions, Securities, Exchange Commission, U.S, Wall Street, Bank of America, London Stock Exchange, Asian Development Bank, Unilever, Alignment, Global, Initiative, Belgian Financial Services, Markets, FSMA, Zuma Press, Accounting, Rochelle, wsj.com Corrections, Amplifications Locations: EU, Australia, Canada, Japan, Hong Kong, Malaysia, New Zealand, Nigeria, Singapore, Glasgow, Monday’s, Egypt, Africa, Asia, U.S

LONDON, June 26 (Reuters) - Companies will face more pressure to disclose how climate change affects their business under a new set of G20-backed global rules aimed at helping regulators crack down on greenwashing. The norms published on Monday have been written by the International Sustainability Standards Board (ISSB) as trillions of dollars flow into investments that tout their environmental, social and governance credentials. David Harris, head of sustainable finance strategic initiatives at London Stock Exchange Group, said the new norms bring more rigour to sustainability reporting, more aligned with financial reporting. Under the ISSB rules, companies would need to disclosure material emissions, with checks by external auditors. The European Union finalises its own disclosure rules next month and it and the ISSB have sought to make each other's norms "interoperable" to avoid duplication for global companies.

Persons: Emmanuel Faber, Faber, Joanna Penn, Jean, Paul Servais, David Harris, Harris, haven't, Huw Jones, Alexander Smith, Robert Birsel Organizations: International Sustainability, Reuters, Force, London Stock Exchange Group, Union, Thomson Locations: Canada, Britain, Japan, Singapore, Nigeria, Chile, Malaysia, Brazil, Egypt, Kenya, South Africa

☆ Global watchdog seeks action on 'too little, too late' corporate goodwill writedown
▼ + stars: | 2023-06-22 | by ( Huw Jones | ) www.reuters.com time to read: +2 min

LONDON, June 22 (Reuters) - Tougher accounting rules may be needed that force companies to write down goodwill faster and stop "overly optimistic" calculations, a global securities watchdog said on Thursday. Goodwill refers to the premium a company has paid for another company, above the net value of its assets. Too little, too late refers to companies suddenly slashing goodwill when major profitability issues emerge. IOSCO is an umbrella group for securities regulators from the United States, Canada, Latin America, Europe and Asia. Since the financial crisis, total goodwill of S&P 500 companies in the United States has more than doubled from $1.6 trillion in 2008 to $3.7 trillion in 2021, IOSCO said.

Persons: IOSCO, FASB, Huw Jones, Elaine Hardcastle Organizations: International Organization of Securities Commissions, European Union, Accounting, EU, ., Thomson, & $ Locations: United States, Canada, Latin America, Europe, Asia, Britain

☆ Global securities watchdog to propose rules for cryptoassets
▼ + stars: | 2023-05-16 | by ( ) www.reuters.com time to read: +2 min

LONDON, May 16 (Reuters) - Global regulators will shortly propose the first set of international rules for cryptoassets, including how existing norms could apply to the sector, a top regulator said on Tuesday. The European Union on Tuesday approved a first set of comprehensive rules, a step firms said would attract them to set up shop in the bloc. "Once finalised the recommendations will deliver a first globally coordinated set of rules for crypto-assets," Jean-Paul Servais, chair of global securities regulatory body IOSCO told an event held by the Managed Funds Association in Paris. IOSCO members, such as the U.S. Securities and Exchange Commission, Japan's Financial Services Authority and regulators in Britain, Germany and France commit to applying the body's recommendations. Servais, who also chairs Belgium's securities watchdog, also said that private finance will be a new priority for IOSCO's work this year.

☆ Crypto firms call for global consensus instead of "fire hose" of rules
▼ + stars: | 2023-05-10 | by ( Huw Jones | ) www.reuters.com time to read: +2 min

Apart from compliance with rules to stop money laundering and terrorist financing, crypto firms are largely unregulated in many parts of the world. "If we built a good regulatory regime, people would come. We are shooting ourselves in the foot by not having a regulatory regime in the U.S.," Peirce said. U.S. Congress needed to decide which regulatory body has authority over crypto, Peirce added. Global standards and harmonisation as much as possible are key, said Sarah Pritchard, executive director for supervision at Britain's Financial Conduct Authority.

☆ UK watchdog says applying lessons from FTX crypto collapse will be 'pacy'
▼ + stars: | 2022-12-07 | by ( Huw Jones | ) www.reuters.com time to read: +2 min

[1/2] Representations of cryptocurrencies are seen in front of displayed FTX logo and decreasing stock graph in this illustration taken November 10, 2022. REUTERS/Dado RuvicLONDON, Dec 7 (Reuters) - Lessons will be applied swiftly from the collapse of crypto exchange FTX that left 80,000 UK investors nursing losses even though the platform was not registered in Britain, the UK Financial Conduct Authority said on Wednesday. Long said regulators' response to the FTX debacle would be "pacy". Currently crypto dealings are unregulated in Britain, with firms only needing to show they can comply with anti-money laundering rules. "In terms of dark money, there is money laundering that is running through crypto," Long said.

☆ Mexican unicorn Bitso sets out transparency roadmap amid FTX crash
▼ + stars: | 2022-11-25 | by ( Valentine Hilaire | ) www.reuters.com time to read: +2 min

MEXICO CITY, Nov 24 (Reuters) - Mexican cryptocurrency exchange unicorn Bitso laid out a transparency roadmap, as pressure from users mounted following the high-profile collapse of crypto exchange FTX, a top Bitso executive told Reuters on Thursday. In a spectacular crypto blowup, FTX filed for protection in the United States earlier this month after traders pulled $6 billion from the platform in three days and rival exchange Binance abandoned a rescue deal. FTX's crash has created a sense of urgency to regulate crypto, the chair of global securities watchdog IOSCO Jean-Paul Servais said in an interview published Thursday. Brazilian lawmakers are speeding up crypto regulation, and in the United States, Congress is expected to make progress next year on regulating its sprawling crypto sector. While Bitso's growth could suffer in the near-term as it implements the new transparency methods, Vallejo said non-crypto services, such as remittances to Mexico, could help offset the blow.

☆ Global regulators to target crypto platforms after FTX crash
▼ + stars: | 2022-11-24 | by ( Huw Jones | ) www.reuters.com time to read: +3 min

LONDON, Nov 24 (Reuters) - The crash of FTX exchange has injected greater urgency into regulating the crypto sector and targeting such 'conglomerate' platforms will be the focus for 2023, the new chair of global securities watchdog IOSCO said in an interview. Jean-Paul Servais said regulating crypto platforms could draw on principles from other sectors which handle conflicts of interest, such as at credit rating agencies and compilers of market benchmarks, without having to start from scratch. Cryptoassets like bitcoin have been around for years but regulators have resisted jumping in to write new rules. "Is it the case for the crypto market? "For investor protection reasons, there is a need to provide additional clarity to these crypto markets markets through targeted guidance in applying IOSCO’s principles to crypto assets," Servais said.

Companies Financial Conduct Authority FollowLONDON, Nov 22 (Reuters) - Providers of environment, social and governance (ESG) ratings on companies will be asked to apply a voluntary best practice code as a first step to regulating the sector, Britain's Financial Conduct Authority said on Tuesday. Trillions of dollars have flowed into sustainable investments globally using unregulated ESG ratings on companies as a guide for their 'green' credentials, leaving regulators worried about greenwashing or over inflated ESG claims. Britain's government is considering giving the FCA powers to directly regulate ESG ratings providers. The code will reflect recommendations from the global securities regulatory body IOSCO, and developments in Japan and the European Union, the FCA said. "A Code could also continue to apply for ESG data and ratings providers that fall outside the scope of potential future regulation," the FCA said in a statement.

☆ COP27: Regulators plan closer scrutiny of carbon markets
▼ + stars: | 2022-11-09 | by ( Huw Jones | ) www.reuters.com time to read: +3 min

LONDON, Nov 9 (Reuters) - Global securities regulators proposed closer scrutiny of carbon trading on Wednesday to deepen liquidity and prevent greenwashing in markets used by companies to offset their emissions to drive the transition to a net-zero economy. The International Organization of Securities Commissions (IOSCO), which groups securities regulators from across the world, made recommendations to improve 'compliance' carbon markets, and asked whether regulators should be more involved in 'voluntary' carbon markets. Compliance refers to regulated markets for trading permits on exchanges like ICE and EEX with the EU emission trading scheme (ETS). The unregulated voluntary market refers to companies buying credits from emission reducing projects like renewable energy or planting trees to offset their own emissions. "Some vulnerabilities in voluntary carbon markets have thus far prevented these markets from scaling to their full potential, while others can be of concern for regulators in their efforts to counter the risk of greenwashing," IOSCO said.

☆ Michigan GOP gubernatorial nominee Tudor Dixon says 'single women working' lead 'a pretty lonely life'
▼ + stars: | 2022-10-16 | by ( John L. Dorman | ) www.businessinsider.com time to read: +3 min

Dixon said that the incumbent governor's "dream for women" is to have "single women working." Gretchen Whitmer of not providing support for families in the state, arguing that the governor favored "single working women" who have "a pretty lonely life." Single women working. Single women working. I think that's pretty twisted," Dixon told the newspaper.

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