BRUSSELS – The Economic and Monetary Affairs Committee (ECON) of the European Parliament postponed its vote on the report proposing regulations for financial benchmarks from January 30 to February 17 or 20. This follows delays in the timetable for the European Council to examine the plans, and a significant number of amendments to the report by members of the European parliament (MEP), including some by the proposal’s rapporteur herself, Sharon Bowles.

FRANKFURT/LONDON/PARIS – The chairs of the three European financial Supervisory Authorities (ESAs, the European Banking Authority, European Securities and Markets Authority and European Insurance and Occupational Pensions Authority) expressed concern about a European Commission report advocating reforms to accounting standards. The three ESAs wrote to European Commissioner for the internal market and services Michel Barnier in response to an expert report by Philippe Maystadt published in November 2013 (see December 2013 edition of GRR).

TORONTO – Mark Zelmer, Deputy Superintendent of Canada’s Office of the Superintendent of Financial Institutions (OSFI), has said that Canada will adopt Basel III proposals for a 3% minimum leverage ratio, rather follow US proposals for a higher ratio.

LONDON – Data from both sides of the Atlantic has shown significant recent falls in the size of the market for borrowing and lending securities through repurchase (repo) agreements.

LONDON – Volumes of cleared Euro interest rate swaps between European and US dealers have fallen by 77% since October 2013. In what the International Swaps and Derivatives Association (ISDA) described as “a breakdown of cross-border trading relationships”, the industry body’s latest survey shows a significant reduction in trading with “US persons” since US rules on swaps trading came into force on 2 October 2013.

BRUSSELS – Think tank Bruegel, chaired by Jean-Claude Trichet, has called on European bank supervisors to make individual bank information publicly available in a timely and consistent manner.

BASEL – The Basel Committee on Banking Supervision (BCBS) has issued its own “fundamental elements” of sound capital planning. This work fits with the regulatory focus on capital planning and various national and international stress testing exercises that are ongoing, especially in Europe and the US.

LONDON/WASHINGTON – Three industry bodies have written to the Secretary-General of the Basel Committee on Banking Supervision (BCBS) expressing deep concerns about aspects of the Committee’s Fundamental Review of the Trading Book. The BCBS consultation paper, published in October 2013, would usher in significant changes to the way banks calculate and capitalise for market risk on their balance sheets (see December 2013 GRR).

ZURICH – The Swiss National Bank (SNB) has instructed banks in the country to double the countercyclical capital buffer (CCB) they hold against lending secured by domestic residential property, from 1% to 2%. Banks have until 30 June 2014 to comply with the new capital requirement, which is based on risk-weighted assets in this specific sector.

LONDON – Ratings agency Fitch has added its voice to growing calls for a closer examination of how banks calculate risk-weighted assets (RWAs) using internal models. Bridget Gandy, a managing director of financial institutions at Fitch, issued a report suggesting that all banks – including those that model RWAs internally – should disclose what their RWAs would be using the standardised formula.