Bank investors are purchasing short-dated securities in anticipation of the Securitisation Regulation. They believe the LCR in its current form will cost them heavily
Corporates are looking at other options for securities lending due to the delay in the new regulation’s RTS. Firms are frustrated as they can't make concrete budgeting and resource plans
The cash shell model is increasingly popular in the UK equity market. In-house counsel think this will lead to formal regulation of the structure, particularly surrounding disclosures on target companies
There’s still significant lingering legal uncertainty for both asset managers and custodian banks as they face the operational challenge of CSA negotiations and KYC checks, at the risk of a sellside backlog closer to deadline
Phase four and five firms are worried that the costs and efforts preparing for uncleared margin rules will be gone with the wind, especially following the CFTC’s threshold announcement
Securities lending desks and trade repositories feel that the new regulation’s 153 data fields are cumbersome, with significant potential for errors and duplication. The UTI requirement is a particular headache
The EC has confirmed market rumours that it will be approving SFTR’s draft RTS within the week. Many firms will be caught off-guard, leaving some in noncompliance
Esma’s dismissal of the Commission’s draft technical standards has both banks and asset managers now anticipating a formal delay. Others argue the project is significant and time is of the essence
More than half of the eight DCM bankers who spoke to Practice Insight did not know that the European Covered Bonds Directive, due in 2019, even exists. Others are concerned about its effects on third-country counterparties as a source at the European Commission confirms here that any form of equivalence regime will take years
Securitisation desks think the new framework could do more harm than good to the troubled market, with some concerned it will put buyside off from investing in the product
DCM bankers, investors and lawyers discuss new challenges in the Schuldschein market as industry associations attempt to standardise documentation with a pro forma template similar to the Euro PP. While some banks want to limit investors' acceleration rights, others are trying to tackle confusion surrounding the product since the market has opened to foreign investors
