The directive’s product governance framework is still causing headaches, with disagreements over when to conduct the reviews and how granular to be. Compliance teams are struggling with the concept of proportionality
Even the EU Commission has now acknowledged the practical issues making recognition and endorsement highly unattractive. The highly politicised equivalence process may now be their best bet
Trading desks speak frankly about the merits and drawbacks of dealing with the biggest liquidity providers and how they see market structure shifting in future
As banks kick off the colossal task of repapering thousands of contracts based on Libor, the need for a financial market-wide approach is becoming clear. Issues are emerging over Isda’s impact, the effect on loans and accounting processes
Despite predictions its rules-based approach would reach across the Atlantic, asset managers, banks and trading venues say very little has changed for them
Many are optimistically keeping faith that the rate will live on long beyond 2021, while others are unsure of exactly what's expected of them. Regulators are getting increasingly frustrated with slow movers
Hedge funds and asset managers waiting for banks to make the first move are making life harder for themselves in the long run, with litigation expected. Fallbacks may also not be the silver bullet many hoped
Endorsement and recognition may be big business for those willing to provide it, but it is risky and time-consuming. Some don't even know the regulation exists
The undisputed winner is settlement efficiency, though some argue the new rules solve a problem that doesn’t exist. Institutional investors and broker-dealers must start work now
The flexibility of venues is easing compliance pains and ramping up competition in the trading platform space. Variations on the hybrid trading model are becoming more popular
