Market participants are worried about the EU’s attempt to relocate derivatives clearing from the UK, as basis swaps between central clearing counterparties have already been widening since the UK voted to leave the EU in 2016. Banks and asset managers argue that this could price them out of the market. Aside from the fundamental increased clearing costs, additional supervisory and operational fees
Isda, investors and sellside operations managers are concerned about Brexit’s impact on existing and legacy contracts, as current repapering cost estimates hover around the $10 million mark per firm. A lack of equivalence would also mean greater exposure to over-the-counter contracts, which may in future count towards various regulatory thresholds
Restructuring plans are well underway for both buy and sellside firms in anticipation of Brexit, but financials are facing challenges with their operating models as Esma cracks down on firms without ‘substance’ in the EU27. Here banks and asset managers describe internal tensions as individuals raise concerns about relocating their families...
Legal teams explain that the inclusion of Brexit-related clauses in prospectuses and contracts is now market practice, but the challenge is keeping documentation up to date with such fast-moving political news. Firms are also facing difficulties adjusting to their new financial regulators in the EU, despite incentives like expedited authorisation
In part two of this landmark survey, Practice Insight speaks to heads of execution, senior in-house counsel, research firm heads and buyside brokers who reveal their anxieties regarding information leaks
Bankers and independent researchers are still in discussion about the procedures regarding when to involve unconnected analysts under the FCA's new IPO regime, which will be effective in just three months. The sellside is concerned that people who are not appropriately qualified and experienced could do harm, while analysts are still unsure on some of the major details
Legal and regulatory specialists are concerned, insisting CSA negotiations and calculations must start as soon as possible. Interest rate swaps will be hit hardest
Equities execution teams feel that the FCA’s premium listing reform will make no difference to market practice. Here investors share their concerns about diluting the quality of the LSE
Custodians are already seeing a shift away from standard fixed income collateral for phase four and five firms. They’re now concerned that international legal differences in what’s eligible will slow the process
Investment firms and trade associations are still holding out for an amendment to the rules which will soon catch non-systemically important firms who post either very little or no margin
Trade associations and central banks are lobbying regulators for an ETF-specific regulation as investors worry about being exposed to risk they did not sign up for
