Wednesday, May 14, 2014

Asia Regulatory Review | 08 - 13 May 2014

ASIFMA Asia Regulatory Review



08 - 13 May 2014 | Issue 203
Spotlight
ASIFMA Launches RMB Roadmap
ASIFMA, together with Standard Chartered and Thomson Reuters, today launched the "RMB Roadmap", a new white paper which advocates and anticipates more open capital markets and increased global usage of renminbi as part of the currency's rise to greater prominence.
China's cabinet, the State Council, on Friday unveiled the guiding principles of regulations for the capital market in coming years. The first guideline envisions a multi-tier capital market by 2020 with a proper structure, functions and regulations, high efficiency and inclusiveness. (Xinhua)
Hong Kong and the United States have substantially concluded discussions on an inter-governmental agreement that will facilitate Hong Kong financial institutions' compliance with the US Foreign Account Tax Compliance Act. The two places are expected to formally sign the agreement later this year.
Update

CHINA
All offshore markets need to be highly connected and integrated into one global offshore renminbi market without legal or operational restrictions on the flow of renminbi between different offshore jurisdictions. As such, offshore renminbi bond issuers will not have to consider in which market they will issue the bonds said Patrick Pang. (FinanceAsia)
A Chinese central banker today urged tougher rules to rein in shadow banking as its unchecked growth has helped drive up borrowing costs and threatens to undermine the financial system in the world's second-biggest economy. Financial innovation in the interbank market and wealth management products has often been aimed at evading regulations on issues such as risk provisioning and capital adequacy, Liu Shiyu, deputy governor of the People's Bank of China, said at a forum in Beijing today. (Bloomberg)
People's Bank of China (PBC) released China Monetary Policy Report Q1 2014. The Report is divided into five sections, providing analyses over Monetary and Credit Policy, Monetary Policy Operations, Financial Markets, Macro-economy and Monetary Policy trends respectively. According to the Report, the central bank will combine monetary policy with deepening reform more closely in the future, enabling the market to play a more decisive role in resource allocation, further improve regulation mode, dredge transmission mechanism, improve financial services through increasing supply and competition, improving operational efficiency and the ability to serve the real economy. PBC will stick to the bottom line of preventing systematic and regional financial risks from happening. (NAFMII Newsletter)
China should resolve to reorganize redundant financial innovations that do no good for the sector's development and the real economy, senior officials from the country's financial regulators have said. Some financial inter-bank business and investment services should be rectified for the healthy growth of the country's finance, Liu Shiyu, deputy governor of the People's Bank of China, said at a forum held in Beijing that ended on Sunday. (Xinhua)
China has set up a state finance institute, expected to become the country's leading financial think tank, to address increasing complexity and the country's progress in opening-up and reform. The institute, to be operated by the PBC School of Finance under Tsinghua University, was co-founded by the university and China's major financial regulators, including the People's Bank of China and three top watchdogs for the banking, stock and insurance sectors. (Xinhua)
This is the first MOU signed by the PBC and another central bank on bilateral AML regulatory cooperation. The signing of this MOU is important for furthering China's AML exchanges with other countries, strengthening communication and cooperation with fellow AML regulators around the world, and for ensuring that the AML work of Chinese financial institutions are conducted in accordance with laws and regulations in places beyond Chinese borders.
On 8th May 2014, Bank of China successfully launched its first offshore Renminbi (RMB) "Schengen bond". This bond, which will be listed on the Euro MTF market of the Luxembourg Stock Exchange, has enabled Bank of China to be the first Chinese mainland company to issue RMB bonds in the Eurozone.
China's government is drafting rules to help manage the fallout of any bank failure, two people with knowledge of the matter said, as lenders in the country face rising loan defaults and increased competition. The People's Bank of China and the China Banking Regulatory Commission are working on a plan to ensure the safety of deposits and an orderly repayment of financial firms' liabilities during a crisis. (Bloomberg)
HONG KONG
Secretary for Commerce & Economic Development Gregory So gave these remarks at an ASEAN Leadership Forum session in Nay Pyi Taw, Myanmar.
The Competition (Amendment) Bill 2014 has been gazetted and will be tabled at the Legislative Council for first and second readings on 14 May 2014. The Bill seeks to amend the Competition Ordinance to ensure the proper function of the Competition Tribunal upon the ordinance's full commencement.
OTC Clear is Now Able to Offer its Services to US Clearing Members
OTC Clearing Hong Kong Limited (OTC Clear), a subsidiary of Hong Kong Exchanges and Clearing Limited (HKEx) established to clear over-the-counter derivatives transactions, has received no-action relief from the US Commodity Futures Trading Commission (CFTC), allowing it to offer its clearing services to eligible US persons or affiliates of US persons (US Clearing Members) without being registered as a derivatives clearing organisation (DCO).

Charles Li blog post.
SINGAPORE
Singapore and the United States have substantially concluded discussions on an intergovernmental agreement (IGA) that will facilitate compliance with the US Foreign Account Tax Compliance Act (FATCA) by Singapore-based financial institutions.
INDIA
A number of exit polls are suggesting that Narendra Modi, the leader of India's main opposition BJP, is on course to win the general election. The BJP dominated the campaign but analysts warn that exit polls have often been wrong in the past. (BBC)
Chidambaram pitches for more investments to attain higher growth
Finance Minister P. Chidambaram on Thursday made a strong case for encouraging foreign and domestic investment to boost growth and said PSUs alone are expected to pump in Rs 1.33 lakh crore in the current financial year. "Investment must revive in this country...the economy has stabilised. The investment cycle has to start again. Both domestic investment and foreign investment must be encouraged. That will lead us to high growth," he said while addressing the media at the AICC headquarters. (The Hindu)
Competitive Monetary Easing: Is it yesterday once more?
Speech by the Governor, Dr. Raghuram G. Rajan
Indian Banking at Crossroads - Challenge of Risk Management from Globalisation to Financial Inclusion
Valedictory address delivered by Shri R. Gandhi, Deputy Governor, Reserve Bank of India
SEBI Discussion Paper on 'Review of Delisting Regulations'
The comment deadline is May 30 2014 and the issues highlighted include: Reverse Book Building Process; Lack of sufficient demand; and Time consuming process.
JAPAN
The Bank of Japan will set aside four times the amount of money it normally would as reserves to offset the risk posed by the assets it is rapidly adding to its balance sheet with its quantitative easing. The BOJ said on Friday that it has requested permission from the finance ministry to set aside 20 percent of the funds left over after the central bank closes its books for fiscal 2013, which ended in March. The finance ministry is likely to approve. (Reuters)
The Financial Services Agency and the Bank of Thailand signed the Exchange of Letters for Cooperation (EOL) on May 9, 2014.
AUSTRALIA
Analysis of Australia's economic outlook and current development.
The prime minister has assured his Liberal and National MPs and senators that the government has not "squibbed" the budget task. "This is a watershed moment, when a bold new government does what has to be done to set the nation on a better course," he said. Mr Abbott said the public will respect the government for the budget, even if there are parts of it people don't like. (The Australian)
NEW ZEALAND
The Reserve Bank is seeking stakeholders' input for a strategic review of its payment and settlement systems. The Reserve Bank announced last year that it would review the Exchange Settlement Account System (ESAS) and NZClear Securities Settlement System (NZClear) that it owns and operates. The review is in anticipation of substantial upgrades that are necessary over the next 2-5 years. The deadline for submissions is 20 June 2014.
THAILAND
The 24th ASEAN Summit provided an opportunity for ASEAN Leaders to review progress in ASEAN Community building efforts and identify priority issues that need to be expedited, as well as set future directions of ASEAN in the context of setting the ASEAN Community's Post-2015 Vision. The Leaders also exchanged views on important regional and international issues.
VIETNAM
Countries involved in negotiations for an ambitious Pacific free trade agreement began talks in Vietnam's Ho Chi Minh City on Monday, aiming to strike a deal in time for a ministerial meeting set to be held in Singapore on May 19-20. Over the next four days, the chief negotiators from the 12 Trans-Pacific Partnership member nations will focus on resolving tough remaining issues such as tariffs, especially in areas such as politically sensitive agricultural goods, intellectual property and reform of state-owned companies. (Global Post)
INTERNATIONAL
The FSB has published the second and final stage of its thematic peer review on implementation of the FSB principles for reducing reliance on credit rating agencies (CRAs) rating. The report focused on the action plans developed by national authorities to implement the FSB roadmap.
In a speech on Tuesday, Jon Cunliffe reviews the progress made by regulators in addressing the issue of Too Big To Fail and sets out some remaining issues. He describes the two-pronged approach taken by regulators: first, to reduce, but not eliminate, the probability of failure by increasing the resilience of financial institutions; second, managing the impact of failure via the resolution framework and by making investors bear losses.
UNITED STATES
Financial Stability Oversight Council Releases Fourth Annual Report
The Financial Stability Oversight Council (Council) today unanimously approved its 2014 annual report, which was developed collaboratively by the members of the Council and their agencies and staffs. Under the Dodd-Frank Act, the Council must report annually to Congress on a range of issues, including significant financial market and regulatory developments, potential emerging threats to the financial stability of the United States, and the activities of the Council.
Federal Reserve Bank of Atlanta President Dennis Lockhart said he expects the central bank will use a reverse-repurchase program when it eventually begins to tighten monetary policy. "I am confident reverse repos will be among our tool bag and will therefore may very well have a role in how we try to influence short-term interest rates," Lockhart said to reporters yesterday after a speech in Dubai. (Bloomberg)
U.S. Treasury Secretary Jacob J. Lew said he will call on Chinese leaders to let markets determine the value of the yuan and to avoid postponing measures to overhaul their economy even as growth falters. "They obviously have to worry about their short-term economic situation," Lew said in an interview on Bloomberg Television's "Political Capital with Al Hunt," airing this weekend. "What they can't do is treat the long-term reforms as something they can just put off. They need to be serious about it." (Bloomberg)
EUROPE
ESMA informs European Commission of its intention to ease certain frontloading requirements under EMIR
The European Securities and Markets Authority (ESMA) sent a letter to the European Commission advancing its intention to ease certain frontloading requirement under the European Markets Infrastructure Regulation (EMIR). Frontloading is a term that refers to the clearing obligation under EMIR, which will oblige counterparties to centrally clear certain derivative trades through clearing houses (CCP).
Steven Maijoor, ESMA Chair, Keynote Speech at the AFME Post Trade Conference, London.


Features




Data



Fitch


Standard & Poor's


Clifford Chance
FATCA IGA Status


Contacts


  
Publications


GFMA Weekly Update

ARR Archive



members of gfma alliance
members of gfma alliance

Subscriber Tools
Lead Editor: Eric Tang                                                                          subscribe     share     SEND FEEDBACK
In accordance with our Privacy Policy, we occasionally distribute information and announcements that are relevant to the development of capital markets in Asia to our ASIFMA Regulatory Review distribution list.

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.

Related Posts with Thumbnails