News

The Basel Committee on Banking Supervision should carry out a comprehensive review of its bank capital reforms, according to market participants, as divergence among major jurisdictions suggests flaws in the rules.

In our latest Regulatory Round-up, European regulators have been busy in a wide range of areas including securities financing, credit ratings, and distributed ledger technologies. Meanwhile, global body the International Organization of Securities Commissions (IOSCO) has sought feedback on market structure evolution, and the International Capital Market Association (ICMA) published legal opinion updates pertaining to repos.

The recommendations cover liquidity risk management and governance, stress testing and scenario design, and collateral management practices of non-bank market participants, focussing on liquidity risks arising from spikes in margin and collateral calls.

Following the 2022 BCBS-CPMI-IOSCO review of margining practices, and recent reports on stress in commodities markets, the FSB has published a consultation report listing eight proposed policy recommendations for the enhancement of liquidity risk management in the non-bank financial intermediation (NBFI) sector.

The maker of the popular stock-trading app Webull is facing a multistate inquiry over its ties to China. Fourteen states are seeking information on Webull’s measures to protect sensitive investor data from the Chinese Communist Party, according to a letter posted Tuesday by Indiana attorney general Todd Rokita, whose office is leading the inquiry.