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LONDON, July 7 (Reuters) - As Thames Water's financial troubles raise questions about such investments, Britain will next week try to persuade pension schemes to plough billions of pounds into infrastructure and start-ups in its next leg of post-Brexit reforms. British Finance Minister Jeremy Hunt will on Monday set out the government's latest thinking on getting cash locked up in pension pots to work in the economy. The Conservative government's long-trailed policy focuses on persuading pension schemes to invest a portion of their money in infrastructure, start-ups and 'green' technology. But the problems at Thames Water, which is battling for survival under 14 billion pounds ($18 billion) of debt, would leave some pension schemes that had made large investments in it embarrassed, said independent pensions consultant John Ralfe. The finance ministry had no immediate comment on Hunt's speech, but the pensions industry has already said it opposes mandatory investment quotas.

Persons: Jeremy Hunt, Hunt, John Ralfe, Ralfe, Nobody, Huw Jones, Alexander Smith Organizations: Thames, British, Conservative, Amsterdam, London, EU, Thomson Locations: Britain, London's, New York, London

☆ UK regulator orders investment funds to manage liquidity better
▼ + stars: | 2023-07-05 | by ( Huw Jones | ) www.reuters.com time to read: +2 min

The suspension of property funds in Britain and difficulties faced by liability-driven investment funds last September have thrown a spotlight on the ability of asset managers to drum up enough cash to meet investor redemptions or collateral calls. The watchdog said its review of asset managers found that while some firms showed very high standards, most fell short in some aspects of liquidity management, with a minority having inadequate frameworks to manage liquidity risks. "As things stand, gaps observed in liquidity management could lead to a risk of investor harm," the FCA said in a statement. The watchdog had already asked firms to review their liquidity arrangements back in 2019, and boards of asset managers should study the findings of the review, the FCA said. Asset managers should also perform liquidity stress testing diligently, and use liquidity management tools appropriately, it said.

Persons: Huw Jones, Mark Potter Organizations: Authority, Thomson Locations: Britain

☆ 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

☆ Britain to set up real-time bond and stock trading record
▼ + stars: | 2023-07-04 | by ( Huw Jones | ) www.reuters.com time to read: +2 min

LONDON, July 5 (Reuters) - Britain's financial watchdog proposed a real-time record of stock and bond prices on Wednesday to help investors spot the best deals and improve the capital markets' attraction. The Financial Conduct Authority (FCA) said it was proposing to create a 'consolidated' tape, which combines trading data from the London Stock Exchange and other platforms, to increase transparency and access to trading. The FCA aims to have the regulatory framework in place by 2024 and would run a competitive tender for a bonds market tape first, followed by stocks. Later this year, the watchdog will consult on further reforms to the transparency of bond and derivatives markets to aid delivery of trading data alongside a tape. "The new consolidated tape will help reduce trading costs, increase transparency and improve data quality," said Sarah Pritchard, the FCA's executive director for markets.

Persons: Sarah Pritchard, Huw Jones, Christina Fincher Organizations: of, Union, Financial Conduct Authority, London Stock Exchange, EU, Thomson Locations: of London, Europe

LONDON, July 4 (Reuters) - British banks should have to serve a customer even if they disagree with his or her lawful political views, and should apply anti-money laundering checks proportionately, financial services minister Andrew Griffith said on Tuesday. Griffith was asked about his views on recent issues around banking services for politicians and other 'politically exposed persons' by the House of Lords' Economic Affairs Committee, which did not name Farage directly. Griffith said Britain's Financial Conduct Authority (FCA) now had powers under a new financial services law approved last week to revisit these rules. "The second thing that we've asked is that the FCA look at creating a domestic politically exposed persons (category) to reflect the lower category of risk associated with those whose affairs are wholly domestic," Griffith said. Reporting by David Milliken, Editing by Huw Jones and Mark PotterOur Standards: The Thomson Reuters Trust Principles.

Persons: Andrew Griffith, Nigel Farage, Coutts, Griffith, it's, David Milliken, Huw Jones, Mark Potter Organizations: Brexit Party, NatWest, Economic Affairs Committee, Authority, FCA, Thomson

☆ UK financial services minister urges caution over central bank digital currency
▼ + stars: | 2023-07-04 | by ( ) www.reuters.com time to read: +1 min

LONDON, July 4 (Reuters) - Britain should be cautious about whether to issue a digital version of the pound given privacy and other issues involved, financial services minister Andrew Griffith said on Tuesday. The finance ministry and Bank of England have launched a public consultation on whether to issue a so-called central bank digital currency or CBDC, mirroring moves by many central banks across the world. "My thinking about CBDC is that we should proceed cautiously, which is precisely what we are doing in the joint consultation with the Bank of England," Griffith told the House of Lords' Economic Affairs Committee. "It's right to engage and have the very widest - and, to a degree, the most thorough - public policy debate which we have started with the process of consultation," he added. Reporting by Huw Jones, editing by David MillikenOur Standards: The Thomson Reuters Trust Principles.

Persons: Andrew Griffith, Griffith, Huw Jones, David Milliken Organizations: Bank of England, Economic Affairs Committee, Thomson Locations: Britain

☆ 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

☆ Stocks firmer after dip in euro zone inflation, dollar firm
▼ + stars: | 2023-06-30 | by ( Huw Jones | ) www.reuters.com time to read: +4 min

[1/2] The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, June 29, 2023. REUTERS/StaffLONDON, June 30 (Reuters) - Global shares stocks were firmer on Friday after data showed that inflation in the euro zone continued to fall this month, and attention turned to U.S. prices figures before the opening bell on Wall Streeet. The dollar and U.S. stock index futures , were firm ahead of the U.S. Personal Consumption Expenditures (PCE) index reading due at 1230 GMT, the Fed's favoured inflation gauge. Euro zone inflation fell to 5.5% in June as the cost of fuel tumbled, with Germany the only country to report an increase, with the European Central Bank still on course for a ninth consecutive rate hike next month, sending euro zone government bond yields higher.

Persons: Jerome Powell, Patrick Spencer, Baird, Spencer, Shunichi Suzuki, Rob Carnell, Hong, Brent, Gold, Huw Jones, Ankur Banerjee, Stephen Coates, Kim Coghill, Chizu Organizations: REUTERS, Staff LONDON, Global, U.S, Federal, European Central Bank, ECB, ING, Big Tech, Finance, Nikkei, Strong U.S, Thomson Locations: Frankfurt, Germany, U.S, Europe, CHINA, Asia, China, Pacific, Japan, Shanghai, Strong

The yield curve's inversions deepened in June after Fed Chair Jerome Powell indicated that the central bank would likely raise rates two more times this year. Stronger-than-expected economic data on Thursday backed expectations that the Fed will keep interest rates higher for longer. Treasury yields- which move inversely to prices - moved up, with 10-year and two-year yields hitting their highest since March 10 and 9, respectively, while some curve inversions intensified. The spread between one- and 30-year Treasury yields was as wide as 153 basis points on Wednesday, its biggest gap since 1981. Key areas of the U.S. economy, including housing and labor, have proven resilient despite higher rates.

Persons: Jerome Powell, Powell, Janet Rilling, Huw Roberts, Davide Barbuscia, Chuck Mikolajczak, Ira Iosebashvili, Sam Holmes, Aurora Ellis, Nick Zieminski Organizations: YORK, U.S, Treasury, Federal, Allspring Global Investments, Quant, Thomson Locations: U.S

☆ EU agrees deal on securities rules that includes ban on broker commission
▼ + stars: | 2023-06-29 | by ( Huw Jones | ) www.reuters.com time to read: +1 min

LONDON, June 29 (Reuters) - The European Union said on Thursday that member states and the European Parliament have reached a deal on updating the bloc's "MiFID" securities trading rules. The EU has been reviewing its securities trading rules to reflect advances in trading technology and also the departure of Britain from the bloc, presenting new competition to EU markets. "The agreement reached today imposes a general ban on 'payment for order flow' (PFOF), a practice through which brokers receive payments for forwarding client orders to certain trading platforms," a statement from the EU member states' council said. Under the deal, member states that already allow PFOF will be exempt from the ban provided it is only offered to clients in that member state. The deal, which needs formal rubber-stamping from the full parliament and EU states, also sets up 'consolidated tapes' that would give investors a snapshot of stock and bond prices on markets to help find the best deals.

Persons: Huw Jones, David Evans, Andrew Heavens Organizations: European Union, EU, Thomson Locations: EU

☆ PwC and KPMG fined over Eddie Stobart Logistics audit
▼ + stars: | 2023-06-29 | by ( Huw Jones | ) www.reuters.com time to read: +2 min

LONDON, June 29 (Reuters) - Britain's accounting watchdog said on Thursday it had fined PwC and KPMG, two of the world's top four auditors, for "serious" failings in their auditing of Eddie Stobart Logistics (ESL) company in 2017 and 2018. PwC was fined 1.9 million pounds ($2.4 million), reduced from 3.5 million pounds due to exceptional cooperation and admissions, the Financial Reporting Council (FRC) said in a statement. PwC admitted failings related to property transactions entered into by ESL, audit procedures, and property lease accruals, the watchdog said. The FRC also fined PwC audit partner Philip Storer 51,187 pounds. The FRC said it had fined KPMG 877,500 pounds, reduced from 1.35 million pounds due to admissions.

Persons: PwC, Eddie Stobart, Philip Storer, Cath Burnet, Burnet, Nicola Quayle, Huw Jones, John Stonestreet, Mark Potter Organizations: KPMG, Eddie Stobart Logistics, Financial, Council, ESL, FRC, Thomson

☆ Dollar index hits two-week high after data; yen remains soft
▼ + stars: | 2023-06-29 | by ( ) www.cnbc.com time to read: +3 min

Hundred dollar bills are seen in this photo illustraiton in Warsaw, Poland on Sept. 21, 2022. The U.S. dollar index climbed to a two-week high on Thursday after economic data showed the labor market remained on a solid footing, giving the Federal Reserve a possible cushion to continue raising interest rates. He said he did not see inflation coming down to the Fed's 2% target until at least 2025. The dollar index was up 0.204% at 103.150 after earlier climbing to 103.44, its highest level since June 13. The dollar strengthened against the Japanese yen for a third straight day, hitting a fresh 7-1/2 month high of 144.90, as U.S. and Japanese central bank policy plans are expected to remain at opposite ends of the spectrum.

Persons: Jerome Powell, Raphael Bostic, Christine Lagarde, Andrew Bailey, Kazuo Ueda, Huw Roberts, Roberts, CME's Organizations: U.S, Federal Reserve, Reuters, Commerce Department, European Central Bank, Atlanta Federal Reserve, Bank of England, Bank of Japan, Fed Locations: Warsaw, Poland, Bank, Europe, Spain, Italy, Swedish

☆ EU proposes payments sector shake-up, legal backing for digital euro
▼ + stars: | 2023-06-28 | by ( Huw Jones | ) www.reuters.com time to read: +2 min

LONDON, June 28 (Reuters) - The European Union on Wednesday proposed injecting more competition into the payments sector, giving legal backing to a digital euro, and preserving the role of cash as fewer people use coins and notes. EU states and the European Parliament have the final say on the package, with some changes likely. "We are going to clearly identify the obstacles that the fintechs should never have been encountering," an EU official said. Electronic payments in the EU has grown from 184.2 trillion euros ($201.7 trillion) in 2017 to 240 trillion euros in 2021, accelerated by COVID-19. The European Central Bank is due in October to decide whether to push ahead with a digital euro.

Persons: Huw Jones Organizations: European Union, Commission, Visa, Mastercard, COVID, EU, European Central Bank, Thomson Locations: U.S

☆ EU agrees deal on final leg of Basel bank capital rules
▼ + stars: | 2023-06-27 | by ( Huw Jones | ) www.reuters.com time to read: +2 min

LONDON, June 27 (Reuters) - The European Union on Tuesday reached a deal to implement the final batch of tougher bank capital rules agreed internationally following the global financial crisis over a decade ago, with additions to contain risks from the crypto sector. The remaining leg of the 'Basel III' global accord, agreed among G20 and other nations, includes safeguards such as limits on big banks using their own internal models to calculate capital buffers. The collapse of Silicon Valley Bank and other lenders in the United States, whose fallout rippled through Europe, and the forced takeover of Credit Suisse by UBS has thrown a spotlight on bank capital and liquidity. The deal between EU states and the European Parliament phases in some elements in the Basel III accord from 2025, two years after the deadline agreed globally. The EU is the first major jurisdiction to reach a deal on the remaining Basel III rules, ahead of Britain and the United States.

Persons: Elisabeth Svantesson, Gilles Boyer, Huw Jones, Christina Fincher Organizations: European Union, Basel III, Silicon Valley Bank, Credit Suisse, UBS, EU, Thomson Locations: Basel, Silicon, United States, Europe, Sweden, Britain

☆ EU to set out legal underpinnings for a digital euro
▼ + stars: | 2023-06-26 | by ( Huw Jones | ) www.reuters.com time to read: +2 min

LONDON, June 26 (Reuters) - The European Union is due on Wednesday to publish draft rules that give legal underpinnings for a digital euro, if the European Central Bank decided to issue one in coming years. The European Central Bank is expected to decide in October on whether to proceed with a digital euro for retail uses like payments from around 2026 at the earliest, to sit alongside cash. Before it can do so, however, the digital currency must have legal backing in the EU to underpin its acceptance and use. The EU draft proposal, which could see changes before publication, says that the benefits of a digital euro would outweigh the costs and that the cost of not issuing one could potentially be very large. A digital version of the euro zone's single currency would be "legal tender", meaning it would have to be accepted as a form of payment, the draft says.

Persons: Moody's, Banks, Huw Jones, Hugh Lawson Organizations: European, European Central Bank, Reuters, EU, Mastercard, Visa, ECB, Thomson Locations: Central, China, Japan, Brazil, Britain, Canada, EU

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

☆ UK insurers may need higher reserves due to 'claims inflation', says BoE
▼ + stars: | 2023-06-23 | by ( Huw Jones | ) www.reuters.com time to read: +1 min

The BoE said that claims inflation due to factors such as rising wage, medical and raw materials costs is expected to affect all general insurers. "There is a risk that persistently elevated claims inflation might result in a material deterioration of solvency coverage for some firms unless they take appropriate mitigating actions," the BoE said in a letter to chief actuaries of general insurers. Therefore, claims inflation should be robustly considered." The BoE anticipates that 2023 year-end will be more challenging for reserving teams at insurers. "Underestimating future claims inflation assumptions can have a significant effect on the representation of a firm’s financial strength," it said.

Persons: The BoE, BoE, Huw Jones, Philippa Fletcher Organizations: Bank of England, Thomson

☆ Britain says insurer capital rule changes to start by end of 2023
▼ + stars: | 2023-06-22 | by ( Huw Jones | ) www.reuters.com time to read: +1 min

The government and Bank of England had clashed over how far to ease the rules, and industry has repeatedly called for the changes to be implemented speedily. "The Government expects that reform of the risk margin will be in force in legislation by year end 2023," the ministry said in a statement. The risk margin refers to the potential cost for a failing insurer to transfer its policies to a third party to avoid disruption to customers. Parliament is finalising a new financial services bill to amend rules inherited from the EU, giving the ministry and regulators powers to make changes. Reporting by Huw Jones; Editing by Toby Chopra and Christina FincherOur Standards: The Thomson Reuters Trust Principles.

Persons: Huw Jones, Toby Chopra, Christina Fincher Organizations: European Union, Bank of England, Thomson Locations: Britain, London

☆ 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

☆ Bank of England launches first sector-wide liquidity 'stress test'
▼ + stars: | 2023-06-19 | by ( Huw Jones | ) www.reuters.com time to read: +2 min

LONDON, June 19 (Reuters) - The Bank of England has launched its first system-wide liquidity 'stress test' to establish how big banks, insurers, clearing houses and investment funds respond collectively during extreme stresses in markets, it said on Monday. The BoE had said in December that investment funds and other non-bank financial institutions would face their first 'stress test' to apply lessons from the near-meltdown in Britain's pension fund sector in September. Liability-driven investment (LDI) funds, used by pension funds to ensure their long-term payouts, struggled to meet collateral calls after turmoil caused by the fiscal plans of Liz Truss's short-lived government in September. Money market funds also came under "dash-for-cash" pressure during market stresses following economy lockdowns to fight COVID-19 in 2020. "The exercise is not a test of the resilience of the individual firms participating.

Persons: The BoE, BoE, Jon Cunliffe, Liz Truss's, lockdowns, COVID, Huw Jones, Emma Rumney, Kirsten Donovan Organizations: Bank of England, Money, Thomson

☆ A Netflix camera crew says its boat was almost sunk in a 'horrific' tiger shark attack while filming in Hawaii
▼ + stars: | 2023-06-17 | by ( Isobel Van Hagen | ) www.businessinsider.com time to read: +3 min

The Netflix camera crew's boat was attacked by two 15-foot-long tiger sharks, reports say. "But the first day the tiger sharks were around, the crew got into these inflatable boats — and two sharks attacked them. "This 'v' of water came streaming towards us, and this tiger shark leapt at the boat and bit huge holes in it. Ron Sanford/Getty ImagesDespite the crew's terrifying experience, the chances of being attacked by a shark are extremely low, Insider recently reported. The new Netflix series examines animal migration patterns and the impact of climate change on the natural world.

Persons: —, David Attenborough, Huw Cordey, Laysan, Cordey, Brian Skerry, Toby Nowlan, Nowlan, Ron Sanford Organizations: Netflix, Service, Radio Times, Getty Locations: Hawaii, Spain, Portugal, British, Laysan, Northwestern, Tiger Beach, Bahamas

☆ Premarket stocks: The uber-wealthy are doing just fine and Wall Street is cashing in
▼ + stars: | 2023-06-02 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +7 min

But that’s not the case for everyone: The ultra-wealthy are doing just fine, and Wall Street firms are taking advantage of that. Germany, the largest economy in Europe, has slipped into recession as energy price shocks took their toll on consumer spending. In the past 10 weeks, JPMorgan Global Wealth Management opened 40,000 new accounts. Last year, it added around one new client with assets of $100 million or more per day, Mary Erdoes, head of asset and wealth management at the bank, told investors last week. Dollar General customers turn to food banksDollar General (DG) stock had one of its worst days ever on Thursday.

Persons: New York CNN —, that’s, JPMorgan Chase, Andy Cohen, Mary Erdoes, It’s, Goldman Sachs, Louis Vuitton, Dom Pérignon, Dior, Huw Roberts, Hermes —, Roberts, ”, Erwan, “, Gregory Daco, Allison Morrow, Jeff Owen, Owen, Cash, They’re, Elisabeth Buchwald, Treasury hasn’t, Biden Organizations: CNN Business, Bell, New York CNN, Wall, JPMorgan, Bloomberg, JPMorgan Global Wealth Management, Citigroup, International Monetary Fund, Lamborghini, HSBC, EY, Dollar, Treasury, US Treasury Locations: New York, China, United States, Germany, Europe, BlackRock

☆ G20 watchdog to study Silicon Valley Bank, Credit Suisse turmoil
▼ + stars: | 2023-06-01 | by ( Huw Jones | ) www.reuters.com time to read: +2 min

European banking stocks plunged after the collapse of Silicon Valley (SVB) bank in the U.S. in March, creating turmoil that lead to the forced takeover of ailing Credit Suisse by UBS in Switzerland. Knot, who also heads the Dutch central bank, said the FSB has begun evaluating lessons from how the U.S. and Swiss authorities had responded to these events. "Why did FINMA, the Swiss supervisor, use a market and not a resolution solution to enable this sale? After all, we have come a long way in improving crisis preparedness in the banking sector," Knot told an event held by the European Banking Federation. Social media is also having an impact on the financial sector with one tweet able to cause a bank run to create liquidity problems, Knot said.

Persons: Klaas Knot, SVB, Huw Jones, Jason Neely, Sharon Singleton Organizations: Suisse, UBS, Basel III, European Banking Federation, Regulators, Thomson Locations: Silicon, U.S, Switzerland, Basel, Swiss

☆ EU to propose greater transparency for default swaps on eight banks - EU document
▼ + stars: | 2023-05-31 | by ( Huw Jones | ) www.reuters.com time to read: +1 min

LONDON, May 31 (Reuters) - The European Commission will propose greater transparency in the trading of credit default swaps of eight top banks to mirror rules in U.S. markets, a European Union document seen by Reuters showed on Wednesday. So-called single name credit default swaps have come under regulatory scrutiny after the fall and state-backed rescue of Credit Suisse triggered high volatility on the CDS market for some systemic banks, Deutsche Bank in particular, on March 24. "One of the conclusions on the events of Friday, 24 March, was that single name CDS contracts are opaque and illiquid," the EU executive body said in a document for a meeting of EU states on Thursday. The Commission said it proposes to re-insert CDS on Santander, BNP Paribas, Credit Agricole, Deutsche Bank, ING Bank, Intesa Sanpaolo, Societe Generale and DZ Bank into the scope of derivatives transactions subject to post trade transparency. Incomplete and asymmetrical reporting of CDS contracts linked to systemically important banks causes insecurity in markets during shocks, the paper said.

Persons: Intesa, Huw Jones, Jon Boyle, Kirsten Donovan Organizations: European, Reuters, Suisse, Deutsche Bank, Santander, BNP, Credit Agricole, ING Bank, Societe Generale, DZ Bank, Thomson Locations: EU

☆ UK regulator makes 'final call' to switch off Libor
▼ + stars: | 2023-05-31 | by ( Huw Jones | ) www.reuters.com time to read: +2 min

The London Interbank Offered Rate (Libor) reflected the cost of lending between banks, using quotes from panels of banks in 35 variants across five currencies. "This is the last remaining Libor panel and its end marks another critical milestone in the transition away from LIBOR," the FCA said in its "final messages" on the rate. "Firms must continue to actively transition contracts that reference Libor to appropriate, robust reference rates, and we continue to expect firms to deliver demonstrable progress," the FCA said. Market participants were given permission to continue using dollar Libor in new contracts on a limited basis, but the FCA said on Wednesday this would end on July 1. The 1, 3 and 6-month dollar Libor rates only will be published in a "synthetic form" for legacy contracts from July 3 to end-September 2024.

Persons: DTCC, Huw Jones, Mark Potter Organizations: Authority, Federal Reserve, Thomson Locations: LIBOR

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