News Items

ISDA believes accounting boards' proposal to report derivatives on a gross basis rather than a net basis on the balance sheet can obscure the real position of the entity

The International Swaps and Derivatives Association, Inc. (ISDA) welcomes the efforts of the International Accounting Standards Board and the Financial Accounting Standards Board to seek convergence on their current US GAAP and IFRS models regarding ...

Waiver of mandatory clearing requirements for certain OTC derivatives would reduce risk

The waiver of mandatory clearing requirements of the Dodd-Frank Wall Street Reform and Consumer Protection Act for certain OTC derivatives transactions would reduce risk in the financial system and help to achieve the risk-reduction goals of the Act,...

Five largest US-based dealers hold 37 percent of total notional amount outstanding of interest rate, credit, and equity derivatives

At its 2010 Regional Conference in Hong Kong , the International Swaps and Derivatives Association, Inc. (ISDA)  on October 25, 2010 provided new statistics regarding the concentration of OTC derivatives activity among major market participants....

SWIFT to reduce message prices by an average 20 percent

SWIFT, the provider of global financial messaging services, announced on September 16 th, 2010 that it is reducing the price of messages on its core FIN service by an average of 20 percent. This will represent an estimated saving of EUR 70 ...

New FSB-BCBS assessment: Stronger capital and liquidity standards are likely to have a modest impact on aggregate output.

The Financial Stability Board (FSB) and Basel Committee on Banking Supervision (BCBS)  published  on August 18, 2010 reports prepared as inputs to the calibration of the new bank capital and liquidity standards and to inform the transition ...

EU US Swift agreement enters into force on 1 August 2010

The Agreement between the European Union and the United States of America on the processing and transfer of Financial Messaging Data from the European Union to the United States for purposes of the Terrorist Finance Tracking Program enters into force...

European Parliament gives green light for new SWIFT agreement

The new version of the SWIFT anti-terrorist agreement on bank data transfers to the USA was approved by the European Parliament on July 8 th, 2010. MEPs rejected the agreement in its previous form four months ago but since then have negotiated certai...

US Companies may face US $1 trillion in additional capital and liquidity requirements as a result of Financial Regulatory Reform

 A change in the wording of the financial reform bill now being finalized in the US Congress could cost US companies as much as $1 trillion in capital and liquidity requirements, according to research by the International Swaps and Derivatives A...

British banks: G-20 agreement will contribute to stable recovery

The G-20 decision to link increases in bank capital to economic growth strikes the right balance between reform and recovery, the British Bankers' Association said today. The statement issued by world leaders after their Toronto meeting recognises th...

G-20: New capital standards will be phased in over a timeframe that is consistent with sustained recovery and limits market disruption

The G-20 summit in Toronto took stock of the progress of the Basel Committee on Banking Supervision (BCBS) towards a new global regime for bank capital and liquidity and welcomes and supports its work. Substantial progress has been made on reforms th...

G-20 reaffirms commitment to trade all standardized OTC derivatives on exchanges or electronic platforms by end-2012 at the latest

On June 26-27, 2010 the G 20 pledged to work in a coordinated manner to accelerate the implementation of over-thecounter(OTC) derivatives regulation and supervision and to increase transparency and standardization. The G-20 reaffirmed&...

G-20: There is a risk that the failure to implement consolidation where necessary would undermine confidence and hamper growth

In Toronto the G-20 held its first Summit in its new capacity as the premier forum for our international economic cooperation on June 26-27, 2010. The G-20 has agreed on the next steps we should take to ensure a full return to growth with quality job...

British banks warn G-20 against those reforms that may promote stability but will have a material adverse economic effect.

Stephen Green, the chairman of the British Bankers' Association, speaking for the heads of the UK's major banks in a letter to David Cameron said the industry shared the government's belief that the financial services sector delivered the best result...

People’s Bank of China decides to enhance the RMB exchange rate flexibility

In view of the recent economic situation and financial market developments at home and abroad, and the balance of payments (BOP) situation in China, the People’s Bank of China has decided to proceed further with reform of the RMB exchange rate...

ISDA Comments on European Commission Consultation

Following publication of the European Commission (EC)'s consultation papers on the regulation of the over-the-counter (OTC) derivatives markets, the International Swaps and Derivatives Association, Inc. (ISDA) on June 14, 2010 made the foll...

Public consultation on EU report reconfirms that VAT is the main legal barrier to the uptake of electronic invoicing.

The final report of The European Commision Expert Group on e-Invoicing was open to public consultation until 26 February 2010. A total of 51 % of the replies agreed with the report’s main messages, recommendations and conclusions; 23 % of the ...

Credit Default Swaps notional outstanding down 21 percent in 2009.

At its Annual General Meeting in San Francisco on April 22, 2010,  the International Swaps and Derivatives Association, Inc. (ISDA) announced the results of its Year-End 2009 Market Survey of privately negotiated derivatives. “ISDA c...

Deutsche Bank completes acquisition of parts of ABN AMRO

Deutsche Bank announced on April 1, 2010  the completion of the acquisition of parts of ABN AMRO's commercial banking activities in the Netherlands for EUR 700 million in cash. The transaction's closing follows the approval by the European ...

ISDA and IIFM launch Islamic hedging master agreement

The International Islamic Financial Market (IIFM) and the International Swaps and Derivatives Association, (ISDA) launched the ISDA/IIFM Tahawwut (Hedging) Master Agreement on March 1th, 2010. The development is a breakthrough in Islamic finance and ...

SWIFT reaction to EU Parliament's rejection of the EU - US Swift Agreement

SWIFT statement on the European Parliament’s rejection of the interim EU-US agreement on the Terrorist Finance Tracking Programme The European Parliament today voted to reject the interim EU-US agreement on the processing and transfer of ...

European Parliament rejects swift agreement

Parliament says no European Parliament voted on Thursday 11 February not to give its consent to the interim agreement between the EU and the USA on bank data transfers via the SWIFT network. The resolution rejecting the agreement was...

ISDA on credit default swaps: Empty Creditor Hypothesis not consistent with the way CDS work.

The International Swaps and Derivatives Association published a detailed analysis of the issues and implications raised by the “empty creditor” hypothesis on December 17 th, 2009. The empty creditor hypothesis relates to the effect...

European Council conclusions on financial stability arrangements and crisis management

The European Council (heads of states or governements) welcomes the preparatory analysis carried out by the European Commission in its communication on an EU framework for cross-border crisis management in the banking sector. The Council agrees with ...

European Council signed swift agreement

On November 30 th, 2010 The Council of the European Union signed the EU-US Agreement on the processing and transfer of financial messaging data for purposes of the US Terrorist Finance Tracking Programme (TFTP). The agreement has to be appr...

Tabasso votes against report of European Expert Group on e-Invoicing

One member of the The European Commision Expert Group on e-Invoicing, Gianfranco Tabasso, did not vote in favor of its final report published in November, 2009.  The report defines a list of business requirements which represent necess...

US senate starts debate on proposals for regulating OTC derivatives

On November 19 th, 2009 the US Senate Banking Committee began debate on senator Chris Dodd's Restoring American Financial Stability Act, a comprehensive bill to reform the financial system. Introducing the  act Dodd said; "Ou...

ISDA concerned about legislative proposals for regulating the derivatives markets

In response to US senator Chris Dodd's Discussion Draft “Restoring American Financial Stability” ISDA's chief executive Robert Pickel, made the following comment  “ISDA and the industry recognize the need to improv...

FED maintains low interest rates

Information received since the US Federal Reserve System's Open Market Committee met in September suggests that economic activity has continued to pick up. Conditions in financial markets were roughly unchanged, on balance, over the interme...

Greater public disclosure in new US Rating Agencies Act

On October 28 th, 2009  the US House of Representatives Financial Services Committee passed the Accountability and Transparency in Rating Agencies Act. “The Accountability and Transparency in Rating Agencies Act aims to curb the inappropr...

BBA's Angela Knight on banking oversight changes: do not act in a haste

Care needs to be taken when making changes to EU banking supervision the British Bankers' Association warned in a press release on October 21 th, 2009. BBA's chief executive Angela Knight said: "Changes to banking supervision arrangements will h...

DSB Bank declared bankrupt

On 19 October 2009, the Court in Amsterdam has declared DSB Bank, based in Wognum, The Netherlands, bankrupt. Dutch Finance Minister Wouter Bos said the  failure was not caused by the credit crisis. In his opinion the bank "brought its...

Emergency regulation in effect for DSB Bank

By decision of 12 October 2009, the Court in Amsterdam has declared the emergency regulation applicable to DSB Bank, based in Wognum, The Netherlands. The Court appointed R. Schimmelpenninck and J. Kuiper as administrators. The emergency regulation w...

BBA: Avoid choking off economic recovery by curtailing banks' ability to lend

Simon Hills, British Bankers Association's  executive director for prudential capital and risk commented on the new liquidity structure for UK banks issued by regulator FSA.            ...

FSA (UK) introduces tighter liquidity requirements for banks

The Financial Services Authority (FSA) has published on 5 October, 2009 its final rules on the liquidity requirements expected of firms (banks and building societies in the UK).  The far-reaching overhaul, designed to enhance firms’ liqui...

Main results ECB Euro Money Markets Survey 2009 published

On 24 september 2009  the European Central Bank (ECB) published a report entitled Euro Money Market Survey 2009, which illustrates the main developments in the euro money market in the second quarter of 2009, in comparison with the second quarte...

Establishment OTC Derivatives Regulators' Forum

International regulators announced on September 24, 2009  the establishment of the OTC Derivatives Regulators’ Forum. Since January 2009, international regulators have been meeting periodically to exchange views and share information...

ECB survey shows a deterioration in the availability of external financing in the first half of 2009.

The European Central Bank (ECB) published on September 21, 2009  a report on the results of a new survey on firms’ access to finance. The survey was conducted in cooperation with the European Commission between 17 June and 23 July 2009 an...

SWIFT feeling Impact Financial Crisis

Like most companies, SWIFT is feeling the impact of the financial crisis and the number of messages processed this year is lower than last year. Year-to-date message volumes are 2.5% below 2008 instead of anticipated growth of 9%, leaving a gap of 11...

Market Participants Commit to Expand Central Clearing for OTC Derivatives

The Board of Governors of the Federal Reserve System, the Federal Reserve Bank of New York, the Office of the Comptroller of the Currency (UK) and other central banks and authorities received on September 8, 2009 commitments from 15 major over-the-co...

ISDA, SIFMA, LIBA:OTC derivatives will remain important

ISDA, SIFMA, LIBA Respond to EC Consultation on Enhancing OTC Derivatives Infrastructure  The International Swaps and Derivatives Association, along with the Securities Industry and Financial Markets Association and the London Investment Ba...

British Bankers Association concerned about capital requirements for large banks

In a statement on TSC 14 th report on Financial Crisis the Britisch Bankers Association is concerned about the suggested capital requirements for larger banks: The Treasury Select Committee report investigates in some detail the regulatory aspec...

Any corporate can now join SWIFT

Any corporate can now join SWIFT, provided it is recommended by a bank located in a FATF (Financial Action Task Force) country that is willing to exchange messages with it. The new criteria voted upon unanimously by the SWIFT Annual General Assembly ...

Defining the L in BBA LIBOR

The independent Foreign Exchange and Money Markets Committee discuss the definition of BBA LIBOR each time they meet, to ensure the rates remain the best possible benchmark for these rapidly changing markets. Currently, the notes that accompany the d...

Amount of collateral in OTC derivative transactions now estimated at $4.0 trillion

Use of collateral in privately negotiated derivatives transactions grew significantly in 2008, with the amount of collateral in circulation now estimated at $4.0 trillion.  “Recent market events underscore the importance of collatera...

EU Review of United States Terrorist Finance Tracking Programme

In March 2008, the European Commission announced a review on behalf of the European Union in respect of the procedures governing the handling, use, and dissemination of financial transaction records from the EU which are carried over the SWIFT networ...

Clarification of the BBA LIBOR definition of BBA LIBOR

The Foreign Exchange and Money Market Committee - the independent body that oversees all aspects of the calculation of BBA LIBOR - announced the following clarification to the definition of BBA LIBOR on 18 december, 2008. This clarification does...

Decision Belgian Data Protection Commission regarding SWIFT

After two years of inquiries and at the end of inter partes proceedings, the Belgian Data Protection Authority publishes its decision in The SWIFT Case on December 10 th, 2008.  • SWIFT provided meaningful cooperation to the Belgian ...

New Peak Day SWIFT on 30 September 2008 driven by market volatility

On Tuesday 30 September 2008, less than two weeks after the previous peak day, SWIFT traffic over FIN recorded a new peak with 17,121,837 messages. The new record represents an increase of 350,388 messages (+2.1%) over the previous peak and is the re...

STATEMENT BY G-7 FINANCE MINISTERS AND CENTRAL BANK GOVERNORS ON GLOBAL FINANCIAL MARKET TURMOIL

The G-7 held a conference call on the September 22nd, to discuss global financial markets. We reaffirm our strong and shared commitment to protect the integrity of the international financial system and facilitate liquid, smooth functioning markets, ...

IASB SHOULD THINK AGAIN ON FAIR VALUE ACCOUNTING

Accounting standards-setters need to recognise that "fair value" is not always the appropriate accounting method for valuing financial instruments, the British Bankers' Association said on 22nd September 2008.    &#...

MEASURES DESIGNED TO ADDRESS ELEVATED PRESSURES IN THE SHORT-TERM US DOLLAR FUNDING MARKETS

On September 18, the Bank of Canada, the Bank of England, the European Central Bank (ECB), the Federal Reserve, the Bank of Japan and the Swiss National Bank are announcing co-ordinated measures designed to address the continued elevat...

CLS BANK SETTLES NEW RECORD VOLUME

On September 17th, CLS Bank International (CLS Bank) set a new record for the volume of payment instructions settled in one day. CLS Bank settled 1,554,166 payment instructions with a gross value of US$ 8.6 trillion. CLS Bank was able ...

SWIFT LAUNCHES EASY, LOW-COST CONNECTIVITY SOLUTION

SWIFT has launched Alliance Lite on September 15th, an Internet-based solution to enable new, low volume customers such as corporates and small financial institutions to connect to SWIFT easily, securely and at low cost. The ne...

CONTINUATION OF SUPPLEMENTARY LONGER-TERM REFINANCING OPERATIONS

The Governing Council on September 4th decided to renew the outstanding six-month supplementary longer-term refinancing operation (LTRO) of EUR 25 billion that was allotted on 2 April, and that will mature on 9 Oct...

PAYMENTS COMMISSION AND ECB SUPPORT LAUNCH OF PAN-EUROPEAN SEPA DIRECT DEBIT; PROVIDE GUIDANCE TO INDUSTRY

The European Commission and the European Central Bank (ECB) on September 4th, encouraged the European Payments Council ('EPC') to move ahead with the launch of the SEPA Direct Debit scheme. Under this scheme, bank customers would...

SOVEREIGN WEALTH FUNDS: THEIR ROLE AND SIGNIFICANCE

Speech by John Lipsky, First Deputy Managing Director of the International Monetary Fund At the Seminar, Sovereign Funds: Responsibility with Our Future, organized by the Ministry of Finance of Chile Santiago, September 3, 2008&...

BIS QUARTERLY REVIEW, SEPTEMBER 2008

Markets adjust to cyclical downturnDuring the period from end-May to late August 2008, global financial markets adjusted to growing signs of a broad-based cyclical deterioration. While markets continued to display signs of fragility, w...

RENEWAL OF THE SUPPLEMENTARY THREE-MONTH LONGER-TERM REFINANCING OPERATIONS

The Governing Council decided on the 31st of July to renew the two outstanding three‑month supplementary longer-term refinancing operations (LTROs) that were allotted on 21 May 2008 (EUR 50 billion) and on 11 June 2008 (EUR 50 b...

SWIFT "THE 21st CENTURY WILL BE THE ASIAN CENTURY"

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  • August 21, 2008
"The 21st century will be the Asian century,” declared SWIFT CEO Lázaro Campos when addressing 250 business leaders in Korea at a meeting on 1 July organised by the Korean International Trade Association, “and as the centre of grav...

US MONETARY AUTHORITIES DID NOT INTERVENE IN FX MARKETS DURING Q2

The U.S. monetary authorities did not intervene in the foreign exchange markets during the April—June quarter, the Federal Reserve Bank of New York said on August 14th in its quarterly report to the U.S. Congress. Dur...

EuroCCP AND SWIFT COLLABORATE ON CONNECTIVITY TO CLEARING AND SETTLEMENT SERVICES FOR TURQUOISE

Brussels, 14 August 2008 —SWIFT, the financial messaging provider for more than 8,300 institutions, has been chosen by European Central Counterparty Limited (EuroCCP) as a connectivity provider to its clearing member...

RESULTS OF THE JULY 2008 BANK LENDING SURVEY FOR THE EURO AREA

The European Central Bank (ECB) on August 8th published its report on the results of the July 2008 bank lending survey for the euro area. The bank lending survey has been developed by the Eurosystem in order to enhance the unders...

NY FED ANNOUNCES TERMS FOR SEPTEMBER TSLF OPTIONS PROGRAM

The Federal Reserve Bank of New York on the 8th of August completed consultations with the primary dealer community and gauged market reaction to the announcement of the Term Securities Lending Facility Options Program (“TSLF Op...

BANKS ACT TO SUPPORT CUSTOMERS IN HOME LOAN DIFFICULTY

Banks are acting to support mortgage customers who are finding it difficult to meet their monthly repayments the British Bankers' Association said on August 6th. High street banks provide two-thirds of all home loans and, in contrast t...

RELEASE OF "CREDIT RISK TRANSFER" PAPER (FINAL) BY BASEL COMMITTEE ON BANKING SUPERVISION

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  • July 31, 2008
The Joint Forum on July 31st released the final version of its paper entitled Credit Risk Transfer - Developments from 2005 to 2007. Market participants provided direct feedback on the consultative draft during meetings held with Joint Forum rep...

MEASURES TO ENHANCE THE US DOLLAR TERM AUCTION FACILITY

The European Central Bank (ECB), the Federal Reserve and the Swiss National Bank are announcing an enhancement of their US dollar liquidity providing operations. ECB decisions The G...

BBA STATS SHOW THAT "TEN MINUTES IS A LONG TIME IN BANKING"

The enormous volume of business transacted round the clock through the UK's banks is highlighted in the British Bankers' Association's latest Abstract of Banking Statistics, published on the 30th of July 2008.      ...

IMF: YEAR AFTER SUBPRIME CRASH, RISKS REMAIN ELEVATED

A year after the subprime market crisis erupted in the United States, triggering financial market turmoil around the world, global financial markets continue to be fragile and systemic risks remain elevated, the International Monetary Fund (IMF) said...

LAUNCH OF TARGET2-SECURITIES PROJECT

On the 17th of July, the Governing Council of the European Central Bank (ECB) decided to launch the TARGET2-Securities (T2S) project and to provide the resources required until its completion. It also decided to assign the development and opera...

LAUNCH OF CCBM2 PROJECT

The Governing Council of the European Central Bank (ECB) announced on the 17th of July that it decided to launch the CCBM2 (Collateral Central Bank Management) project. It also assigned the development and operation of CCBM2 to the Na...

CGFS ISSUES REPORTS PERTINENT TO THE FINANCIAL TURMOIL

The Committee on the Global Financial System (CGFS) on the 4th of July published three reports analysing important issues pertinent to the financial market turmoil that broke out in mid-2007. They are:* Private equity and leveraged finance markets;* ...

ECB MONETARY POLICY DECISIONS

On the 3rd of July’ meeting the Governing Council of the ECB took the following monetary policy decisions:1. The minimum bid rate on the main refinancing operations of the Eurosystem will be increased by 25 basis points to 4.25%, starting from...

GSMA TEAMS UP WITH EUROPEAN PAYMENTS COUNCIL

Published on the 30th June - The GSMA, the global trade body for the mobile industry, and the European Payments Council, which represents 8,000 banks in the European Union and EEA and Switzerland, are to work together to accelerate the deployment of ...

FINANCE ASIA SUMMERY Q2

CAMBODIAMalayan Banking Bhd (Maybank) has opened a second branch in Cambodia as part of its strategy to grow its international network as well as to make inroads into the domestic markets where Maybank is present. The branch, loca...

STEP2 TO BENEFIT FROM COMMUNITY PRICING SCHEME

In a significant step towards setting up a competitive infrastructure for the Single Euro Payments Area (SEPA), SWIFT has agreed with EBA CLEARING that the STEP2 community will benefit from the new SWIFTNet Bulk Payments pricing as of 19th of June. T...

SWIFT: Exceptionally strong message growth in 2007

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  • June 18, 2008
SWIFT announced today 18 june 2008 that message traffic growth exceeded expectations in 2007. Message traffic increased 22.2 % compared to 2006 while operating revenue before rebate rose by 6.3%. During the same period, the average price of a SWIFT m...

PRINCIPLES FOR SOUND LIQUIDITY RISK MANAGEMENT AND SUPERVISION

The Basel Committee on Banking Supervision on July 17th  issued for public comment enhanced global Principles for Sound Liquidity Risk Management and Supervision.“The Basel Committee’s goal in developing these global standards is t...

"EURIBOR IS AN ENTIRELY SATISFACTORY AND REALIABLE BENCHMARK"

A press statement released on the 13th of June 2008 revealed that at the last meeting of the Euribor Steering Committee in late May 2008, members announced their overall satisfaction with the performance of the benchmark, notwithstanding the current ...

Strengthening LIBOR for the future

  • News Item
  • June 10, 2008
The British Bankers' Association announced a package of changes to the governance of its London Interbank Offered Rate (BBA LIBOR) at its annual conference on 10 June, 2008. The global borrowing benchmark BBA LIBOR is to be strengthened by reinf...

EURO MONETARY POLICY DECISIONS

At the 5h of June meeting the Governing Council of the ECB decided that the minimum bid rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged at ...

BOE MAINTAINS BANK RATE AT 5%

The Bank of England’s Monetary Policy Committee on June 5th voted to maintain the official Bank Rate paid on commercial bank reserves at 5.0%. The previous change in Bank Rate was a reduction of 0.25 p...

CENTRAL BANKERS CALL FOR ACTION TO TAKCLE POTENTIAL CONTAGION IN THE GLOBAL FINANCIAL INFRASTRUCTURE

In a report published on the 4th of June by the Committee on Payment and Settlement Systems (CPSS), central bankers recommend a number of actions to address the risk-transmission channels brought by system inte...

CLS BANK LIVE WITH ISRAELI SHEKEL AND MEXICAN PESO

On May 26th 2008, CLS Bank International (CLS Bank) announced that it will settle payment instructions in two new currencies for the first time this week. This brings to seventeen the number of currencies eligible to settle through CLS Bank. Followin...

OTC DERIVATIVES MARKET ACTIVITY IN THE SECOND HALF OF 2007

The OTC derivatives market showed relatively steady growth in the second half of 2007, amid the turmoil in global financial markets as indicated by the BIS on May 22nd 2008. Notional amounts of all categories of OTC contracts rose by 15% to $596 tril...

CENTRAL BANKERS CALL FOR MORE ACTION TO REDUCE FOREIGN EXCHANGE SETTLEMENT RISK

In a report published on May 13, by the Committee on Payment and Settlement Systems (CPSS), central bankers have highlighted the need for further action to reduce foreign exchange settlement risk. The report, Progress in reducing foreign exchange set...

RESULTS OF THE ARPIL 2008 BANK LENDING SURVEY FOR THE EURO AREA

The European Central Bank (ECB) on May 9th published its report on the results of the April 2008 bank lending survey for the euro area. The bank lending survey has been developed by the Eurosystem in order to enhance the understanding of bank lending...

TARGET2; CONFIRMATION OF GO-LIVE DATE FOR MIGRATION GROUP 3

After the successful completion of its tests on May 9, the Eurosystem acknowledges the readiness of the banking communities of migration group 3 (composed of Denmark, Estonia, Greece, Italy, Poland and the ECB) and formally confirms that the migratio...

JOINT MINISTERIAL STATEMENT 11TH ASEAN PLUS 3 MINISTERS MEETING

At the ASEAN Ministers meeting in Madrid on 4 May 2008, the following statement was made on Asian Bond Markets Initiative (edited).Along with the effort and progress made under the ABMI since 2003, the Asian bond markets have recorded remarkable grow...

MEASURES TO ADDRESS LIQUIDITY PRESSURES IN SOME FUNDING MARKETS

Central banks have continued to work together and to consult regularly on liquidity conditions in financial markets. In view of the persistent liquidity pressures in some term funding markets, the European Central Bank (ECB), the Federal Reserve, and...

CSDs INVITED TO JOIN THE TARGET2-SECURITIES INITIATIVE

On May 2 2008, the Governing Council of the European Central Bank (ECB) is today issuing a proposal to all European central securities depositories (CSDs) to join the TARGET2-Securities (T2S) initiative. This proposal consists of:1.   ...

BOE SPECIAL LIQUIDITY SCHEME

The Bank of England on 21 April 2008 is launching a scheme to allow banks to swap temporarily their high quality mortgage-backed and other securities for UK Treasury Bills. With markets for many securities currently closed, banks have on their balanc...

FINANCE ASIA SUMMERY Q1

CAMBODIA: S&P Rating for Cambodian BankAcleda Bank Plc, the third largest bank in Cambodia, receive a B+/B credit rating from Standard & Poor. This is the first credit rating that a Cambodian bank received from the rating agency. Acleda is th...

EUROPEAN BANKS'LEADRS REAFFIRM INVOLVEMENT IN CRISIS SOLVING

In an internal debate about the financial crisis on April 18, members of the Board of the European Banking Federation (EBF) generally welcome the recent reports and statements issued by the G7, Ecofin or the Financial Stability Forum. They agree that...

BASEL COMMITTEE ON BANKING SURPERSVISION ANNOUNCES STEPS TO STRENGTHEN THE RESILIENCE OF THE BANKING SYSTEM.

The Basel Committee on 16 April 2008, is announcing a series of steps to help make the banking system more resilient to financial shocks. These include:• Enhancing various aspects of the Basel II Framework, including the capital treatment of c...

IBFed. PERSPECTIVE ON RECENT MARKET EVENTS

On 20th of March 2008, the IBFed’s responded to the IOSCO’s suggested steps for market participants to take to assist in the restoring of confidence to the market as announced in IOSCO’s media release of 6 February 2008 and build...

ASEAN FINANCE MINISTERS VOW TO BE VIGILANT AGAINST GLOBAL VOLATILITY

ASEAN Finance Ministers met in the Vietnamese city of Danang on 19 February 2008, and reaffirmed their commitment to further strengthen economic and financial cooperation in the region, amid soaring food prices and deteriorating global conditions tha...

FSF RECOMMENDS ACTIONS TO ENHANCE MARKET AND INSTIITUTIONAL RESILIENCE

The FSF, on 12 April 2008 presented to the G7 Finance Ministers and central bank Governors a report making recommendations for enhancing the resilience of markets and financial institutions. The recommended actions are in five areas:Strengthened prud...

MARKET FORCES SET TO DRIVE ASIA PECIFIC FINANCIAL MARKET HARMONISATION

The first in a series of ten SWIFT Business Forums throughout Asia Pacific was held in Singapore on 8 and 9 April. The forum was well-attended by over 300 participants from the financial services industry and corporates from five Southeast Asian coun...

RELEASE OF "CREDIT RISK TRANSFER" PAPER BY BASEL COMMITTEE ON BANKING SUPERVISION

  • News Item
  • April 1, 2008
On 1 April 2008, the Joint Forum (see below) released for consultation a paper entitled Credit Risk Transfer - Developments from 2005 to 2007. The paper was developed in response to a request from the Financial Stability Forum (FSF) in March 2007 to ...

FSF MEETS IN ROME

The Financial Stability Forum (FSF) met in Rome on 28-29 March. Members discussed the current challenges in financial markets, the steps that are being taken to address them and policy options going forward.===========================Financial system...

ECB'S SIX-MONTH AND THREE-MONTH LONGER-TERM REFI OPERATIONS

The Governing Council decided at its meeting on 27 March 2008 to conduct supplementary longer‑term refinancing operations (LTROs) with a maturity of six months. In addition, the Governing Council decided to conduct further suppl...

CLS BANK SETTLES NEW RECORD VALUE

On 19 March 2008, the CLS Bank International (CLS Bank) set a new record for the value of payment instructions settled in one day. CLS Bank settled 1,113,464 payment instructions with a gross value of US$ 10.3 trillion (previous record US$ 8.75 trill...

BBA's COMMENT ON LIBOR MOVEMENTS

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  • March 17, 2008
Commenting on the 17th of March, movements in interbank lending rates, Angela Knight, Chief Executive of the British Bankers' Association, said:          "The continued rise in BBA LIBOR rates r...

EU TO REVIEW UST's; HANDLING OF SWIFT DATA UNDER SUBPOENA

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  • March 11, 2008
On the 11 March 2008 the European Commission has designated French Judge Jean-Louis Bruguière to review the procedures governing the handling, use and dissemination of the SWIFT data subpoenaed by the United States Treasury (UST). The US governm...

SPECIFIC MEASURES TO ADDRESS LIQUIDITY PRESSURES IN FUNDING MARKETS

On the 11th of March, the Governing Council of the ECB, decided, in conjunction with the Federal Reserve and in the context of the Term Auction Facility (TAF), to offer US dollar funding to Eurosystem counterparties as it did in December 2007 and in ...

FEDERAL RESERVE ACTIONS

On the 11th of March the Federal Reserve announced an expansion of its securities lending program.  Under this new Term Securities Lending Facility (TSLF), the Federal Reserve will lend up to $200 billion of Treasury securities to primary dealer...

BANK OF ENGLAND ACTIONS

The Bank has announced a continuation of its expanded 3-month long term repo open market operations against a wider range of high quality collateral. It applies to scheduled operations on 18 March and 15 April which were described in a statement rele...

SWISS NATIONAL BANK ACTION

The Swiss National Bank (SNB) on the 11th of March decided, in conjunction with the Federal Reserve, to resume the US dollar repo auctions it conducted in December 2007 and January 2008. This measure facilitates the US dollar funding of SNB counterpa...

EONIA SWAP INDEX TO CHANGE FIXING TIME

At its last meeting on the 31 January 2008,  the Eonia Swap Index Steering Committee decided unanimously to change the fixing time of the EONIA SWAP INDEX from 16.30 CET to 11.00 CET as of 3 March 2008. This decision was made at the widespread r...

LIQUIDITY RISK: MANAGEMENT AND SUPERVISORY CHALLENGES

The Basel Committee on Banking Supervision released a paper on the 21st of February entitled Liquidity Risk: Management and Supervisory Challenges.The Basel Committee's Working Group on Liquidity began work on this topic in late 2006 to review liqui...

BANKS BACK CALLS TO BOOST UK FINANCIAL SERVICES

On the 11th of February 2009, the BBA announced that Banks back calls for a package of considered measures to boost the success and competitiveness of the UK's financial services in Europe.The inquiry from the House of Lords into the Europe...

FSF SETS OUT POLICY DIRECTIONS FOR STRENGTHENING THE RESILIENCE OF THE FINANCIAL SYSTEM

On the 9th of February, 2008 the FSF's Working Group on Market and Institutional Resilience has sent an interim report to G7 Finance Ministers and Central Bank Governors. It discusses the Working Group's views to date on adjustments and nea...

RENEWAL OF THE ECB's LTRO's

  • News Item
  • February 7, 2008
The Governing Council of the ECB decided on 7th of February to renew the two supplementary longer-term refinancing operations (LTROs) that were allotted on 23 November 2007 (EUR 60 billion) and on 12 December 2007 (EUR 60 billion) and which will matu...

ECB's KEY INTEREST RATES REMAINS UNCHANGED AT 4%

At the 7th of February meeting of the Governing Council of the ECB it was decided that the minimum bid rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged at 4...

BANK OF ENGLAND REDUCES BANK RATE TO 5.25%

The Bank of England’s Monetary Policy Committee on the 7th of February voted to reduce the official Bank Rate paid on commercial bank reserves by 0.25 percentage points to 5.25%.The prospects for output growth abroad have deteriorated and the ...

CLS THIRD PARY PARTICIPANTS NOW 2351 INSTITUTIONS

On the 1st of February 2008, CLS announced that in addition to the 57 CLS Bank Members, a total of 2351 participants are currently using the CLS Bank service. Included in this total are 369 banks, corporates and non-bank financial inst...

New Fixing Time EONIA Swap Index

  • News Item
  • January 31, 2008
  At its last meeting on 31 January 2008, the Eonia Swap Index Steering Committee decided unanimously to change the fixing time of the EONIA SWAP INDEX from 16.30 CET to 11.00 CET as of 3 March 2008. This decision was made at the widespread...

THE FOMC DECIDED TODAY TO LOWER TARGETED FEDERAL FUNDS RATE TO 3%

The Federal Open Market Committee of the Federal Reserve System of the United States decided on the 30th of January, to lower its target for the federal funds rate 50 basis points to 3 percent.Financial markets remain under considerable stress, and c...

JOINT STATEMENT BY THE EC AND THE ECB WELCOMING THE FORMAL LAUNCH OF SEPA PAYMENTS INSTRUMENTS BY EU BANKS

On the 28th of January 2008, SEPA (the Single Euro Payments Area) went live and European banks formally launched the first SEPA payment instrument, for credit transfers. This marks the first step in a migration process over the next few years d...

SOCIETE GENERALE EXPLANATORY NOTE ABOUT THE EXCEPTIONAL FRAUD

On the 27th of January 2008, Société Générale presented a doucment describing the method behind the fraud as revealed by Société Générale's investigations at January the 26th 2008. On January 29th, the Audit Co...

THE RUN ON THE ROCK

On the 24th of January 2008, The House of Commons ordered the publication of the Report which examines what caused the run on Northern Rock.IntroductionThe period from Friday 14 September 2007 to Monday 17 September saw the first run on the retail de...

Unusual swift peak day on 23 January 2008 driven by volatility

On Wednesday 23 January 2008, traffic over SWIFTNet FIN hit a new peak with 16,327,668 messages. This represents an increase of 229,328 messages (1.4%) over the last peak day on 28 September 2007. The peak day was driven by volatility in the treasury...

FINANCIAL STABILITY FORUM CHAIRMAN WELCOMES HEDGE FUND MANAGER INITIATIVE ON BEST PRACTICE STANDARDS

The Chairman of the Financial Stability Forum (FSF), Mario Draghi, made the following statement in response to the release on the 22nd January 2008 of the Hedge Fund Working Group's Hedge Fund Standards: Final Report."As FSF chair, I welcome the issu...

BOND MARKETS AND LONG-TERM INTEREST RATES IN NON-EURO AREA MEMBER STATES OF THE EU

The European Central Bank (ECB) on 22nd January is publishing an updated addendum to the November 2004 report entitled “Bond markets and long-term interest rates in non-euro area Member States of the European Union and in accession countries&#...

SEPA GOES LIVE

To mark the official launch of the SEPA (Single Euro Payments Area), Mr Charlie McCreevy (Internal Market and Services Commissioner, European Commission), Ms Gertrude Tumpel-Gugerell (Member of the Executive Board, European Central Bank) and Mr Gerar...

RESULTS OF THE JANUARY 2008 BANK LENDING SURVEY FOR THE EURO AREA

The European Central Bank (ECB) on 18th of January published its report on the results of the January 2008 bank lending survey for the euro area. The bank lending survey has been developed by the Eurosystem in order to enhance the understanding of ba...

DTCC AND CLS BANK INTERNATIONAL LAUNCH CENTRAL SETTLEMENT OF OTC CREDIT DERIVATIVES TRADES

The Depository Trust & Clearing Corporation (DTCC) and CLS Bank International (CLS) announced on the 14th of January 2008 the successful launch of their central settlement service for over-the-counter (OTC) credit derivatives transactions. The se...

ECB AGAIN OFFERING US DOLLAR LIQUIDITY

On 10 January 2008, the Governing Council of the European Central Bank (ECB) decided, in conjunction with the Federal Reserve and in the context of the Term Auction Facility (TAF), to further offer US dollar liquidity in January, in order to contribu...

MALTA AND CYPRUS JOIN THE EURO AREA

The euro has been introduced in Cyprus and Malta on the 1st of January 2008. The number of EU Member States that use the single European currency has now increased to 15. The European Central Bank (ECB) welcomes this further enlargement of the euro a...

TRIENNIAL CENTRAL BANK SURVEY OF FOREIGN EXCHANGE AND DERIVATIVES MARKET ACTIVITY IN 2007

The 2007 Triennial Central Bank Survey of Foreign Exchange and Derivatives Market Activity Report which the BIS published on 19 December 2007, shows a substantial increase in turnover in foreign exchange and OTC derivatives markets. Turnover in tradi...

EPC ISSUES FIRST VERSION OF A SEPA BUSINESS TO BUSINESS DIRECT DEBIT SCHEME RULEBOOK

On 18 December the EPC Plenary approved version 1.0 of the SEPA B2B Direct Debit Scheme Rulebook.The Scheme provides a set of inter-bank rules, practices and standards which will allow the banking industry in SEPA to offer - on an optional basis - a ...

SMALL BUSINESS IN UK NOT AFFECTED BY CREDIT CRUNCH

Latest figures (Q3 2007) for the main UK high street banks providing small business services show that: Term lending stands at £39.9 billion, having grown nine per cent over the 12 months to September.  Overdraft borr...

BBA LIBOR FALLS ON CENTRAL BANKS INTERVENTION

The first BBA LIBOR fixings since December 12 th’s central bank interventions shows banks are borrowing money from each other at lower rates. The real rates of interest being used by the UKs banks to borrow from each other have fallen, d...

CENTRAL BANK MEASURES ADDRESSED TO ELEVATE PRESSURES IN SHORT-TERM FUNDING MARKETS

On the 12th of December 2007, the Bank of Canada, the Bank of England, the European Central Bank (ECB), the Federal Reserve, and the Swiss National Bank announced measures designed to address elevated pressures in short-term funding markets. Th...

TARGET 2 SUCCESFULLY LAUNCHED

On November 19 th, 2007 the Eurosystem launched successfully the single shared technical platform of TARGET2, the payment system used for settlement in real time of predominantly high-value euro payments in central bank money. TARGET2 will succ...

BANK TAKES ADVANTAGE OF SWIFT'S NEW FIXED PRICING

Rabobank has become the first bank to sign up to SWIFT's new structured pricing initiative, as announced by SWIFT CEO Lázaro Campos in the opening plenary of Sibos on October 1th, 2007. Under the initiative, SWIFT users pay a fixed fee for all S...

SWIFT ANNOUNCES NEW FIXED FEE PRICING OPTION

SWIFT is changing its approach to pricing to reflect the diversity of its customer base. Effective 1 January 2008, high-volume customers can opt for a fixed fee pricing scheme for messaging. “We are making fundamental changes to the way we cha...

BBA LIBOR PANELS 2007 / 2008

In accordance with the BBA LIBOR definition, the BBA has reviewed the composition of the Contributor Panels for Australian Dollars, Canadian Dollars, Danish Krone, Euros, Japanese Yen, New Zealand Dollar, Swiss Francs, Sterling, Swedish Krona a...

SIX MAJOR ACHs JOIN SWIFT SEPA TESTING

SWIFT announced on June 6 th 2007 that six Automated Clearing Houses (ACHs) processing the majority of retail payments in Europe will test compliance with SEPA standards using the SWIFT Testing Programme. ACHs are also encouraging their clients...

THE SWIFT SAGA CONTINUES

AN UPDATE BY DECHERT LLPThe SWIFT saga continues. By way of background, the operations centres of SWIFT, the worldwide financial telecommunications network operator, in Belgium and the US each hold all messages processed by SWIFT, which includes info...

FED CHAIRMAN ON PRIVATE INVESTORS

FED Chairman Mr Ben S Bernanke argued on April 11, 2007 at the NY University Law School that, in many situations, regulation that relies on the invisible hand of market-based incentives can complement direct government regulation. For market-ba...

JOINT MINISTERIAL STATEMENT OF THE 11th ASEAN FINANCE MINISTERS

The ASEAN Finance Ministers convened at the 11th ASEAN Finance Ministers’ Meeting (AFMM) in Chiang Mai, Thailand on 4-5 April 2007 and exchanged views on global and regional economic developments. They also discussed progress in the implementa...

US TERRORIST FINANCING INVESTIGATIONS AND THE ROLE OF SWIFT

AN UPDATE BY SWIFT As we enter 2007, SWIFT summarizes below the events of 2006 following the disclosure by US newspapers of US terrorist financing investigations and the role of SWIFT. On 23 June 2006, the New York Times followed by other US ne...

FINALIZATION OF THE EURO CASH CHANGEOVER IN SLOVENIA

Two weeks after the introduction of the euro banknotes and coins on 1 January 2007 , the cash changeover in Slovenia has been successfully finalized in accordance with the plans. The euro has now fully replaced the tolar as the sole legal tender. The...

SWIFT LAUNCHES ENHANCED SWIFT FOR CORPORATES OFFERING

  • News Item
  • January 10, 2007
SWIFT announced today on January 10 th, 2007 enhanced corporate to bank access model is live and commercially available after a successful three-month pilot. Called SCORE (Standardised CORporate Environment), the new access model is for any corporate...

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