Bank troubles and Eurozone's future shape dominate Draghi discussion
July 9, 2012--July 9, 2012--A "reasonable concept by the end of the year" for EU bank supervision is the top priority, ECB President Mario Draghi told Economic and Monetary Affairs Committee MEPs on Monday.
The ECB could undertake this task, with the European Parliament having a central role to ensure democratic accountability and legitimacy, he insisted.
At the committee's quarterly hearing, Mr Draghi fielded questions on the details of an EU banking union and the wider vision of where the Eurozone should be going. He complimented the efforts of the hardest-hit countries, particularly Ireland and Portugal, whilst also recognising those of Spain and Italy.
EU bank supervision is top priority
Observing that quality must sometimes take precedence over speed, Mr Draghi nonetheless conceded that EU-level bank supervision would need concrete steps by the end of the year. Asked by Jean-Paul Gauzes (EPP, FR), how the ECB envisaged the role of bank supervisor, he replied that the ECB stood ready to fulfil it, but added that it was crucial that its monetary policy decisions should remain independent of its supervisor function. He also insisted that any increase in powers for the ECB would require more accountability, which would be best achieved by ensuring that the European Parliament plays a central role in it.
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Source: European Parliament
Malta Stock Exchange Uses Deutsche Boerse Xetra System
July 9, 2012--The Malta Stock Exchange (MSE) migrated its electronic securities trading to Deutsche Boerse's Xetra trading system on Monday.
Xetra trading participants can now use Deutsche Börse’s infrastructure to easily access the Maltese financial market. It also gives twelve new market participants from Malta access to an extensive pan-European network of traders.
Frank Gerstenschläger, member of the Executive Board of Deutsche Börse and responsible for the Xetra business area, said: “The Malta Stock Exchange now has one of the fastest and most reliable trading systems in the world. It connects participants in Malta to a network of around 4,500 traders in 19 countries and offers them the widest range of products in Europe and highly liquid trading.”
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Source: Xetra
ESMA publishes two Q&A on UCITS
July 9, 2012--ESMA has today published the following Q&A.
view the Notification of UCITS and exchange of information between competent authorities
view the Risk Measurement and Calculation of Global Exposure and Counterparty Risk for UCITS
Source: ESMA
Synthetics hit as ETFs get physical
July 6, 2012--Global inflows into exchange traded funds may have accelerated in the first six months of the year but detailed analysis shows synthetic providers suffered outflows nearing $3bn.
Data from ETFGI shows that Deutsche Bank's db x-trackers experienced the largest net outflows in the year to date with $1.43bn, followed by Commerzbank with outflows of $875m and Societe Generale's Lyxor with $857m.
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Source: Efinancial News
Cloudy Outlook for Sweden After Years of Success
Growth set to slow sharply from 4 percent in 2011 to 1 percent in 2012
Growth prospects in major trading partners in question; krona strengthening
Despite some strengths, the financial sector remains a concern
For years, Sweden has achieved strong growth coupled with low debt and inflation.
July 6, 2012-- Recovery from the 2008 crisis was V-shaped, thanks to a fast recovery in key export markets and a decisive domestic policy response-with output at end-2011 up some 10 percent from its trough.
But the outlook for growth is now clouded as two-thirds of the nation’s exports and much of the banking sector’s lending go to Europe, the IMF said in its regular assessment of the Swedish economy.
Sweden’s record was largely built on strong policy frameworks in the context of a buoyant global economy. But the country surprised markets when GDP contracted 1.1 percent in the fourth quarter of 2011 as exports decreased markedly. The IMF estimates that GDP growth will drop from 4 percent in 2011 to 1 percent in 2012, regain steam in midyear, and come in at 2.3 percent in 2013.
view the IMF Country report-Sweden 2012 Article IV Consultation
Source: IMF
Government publishes vision for building societies
July 6, 2012--Government publishes vision for building societies
The Government has published a discussion document setting out its vision for the building societies sector, Mark Hoban, Financial Secretary to the Treasury, announced today.
The consultation sets out how the recommendations of the Independent Commission on Banking (ICB) will apply to the building societies sector.
Today’s document, which has been welcomed by the sector, confirms the Government’s support for the distinctive alternative offered by building societies. It outlines the Government’s intention to remove unnecessary barriers to growth and help to create a more level playing field with banks. It also confirms that:
building societies legislation will be aligned with ring-fencing requirements to ensure clarity and a level playing field;
the loss-absorbency proposals will apply to building societies in the same way as to banks of a similar profile, and creditor hierarchies for building societies and banks will be equalised; and
view the Consultation document-The future of building societies
Source: HM Treasury
Lyxor closes range of ETFs in London
July 6, 2012--Lyxor Asset Management is delisting and liquidating five exchange traded funds (ETFs) on the London Stock Exchange, including its Luxembourg-domiciled FTSE 100 ETF.
The range of five funds, which also comprises the FTSE 250, FTSE All Share, MSCI AC Asia Apex 50 and Euro Stoxx 50, are being de-listed from the LSE, while the Lyxor Euro Stoxx 50 is also being removed from NYSE Euronext Paris.
The last trading day will be on 26 July, while creation and redemption orders can be made until the cut-off time on 26 for the MSCI AC Asia Apex 50 and 27 July for the four other funds.
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Source: CityWire
ESMA publishes MiFID guidelines to enhance investor protection
July 6, 2012--The European Securities and Markets Authority (ESMA) has today published two final sets of guidelines aimed at enhancing the protection of investors in the EU.
The guidelines relate to the provisions under the Markets in Financial Instruments Directive (MiFID) relating to the suitability of investment advice and the compliance function.
ESMA, by issuing these guidelines, expects to promote greater convergence in the interpretation of, and supervisory approaches to, the MiFID suitability and compliance requirements. The guidelines are aimed at both market participants and national competent authorities who should incorporate them into their supervisory practices.
view the ESMA Final report-Guidelines on certain aspects of the MiFID suitability requirements
Source: ESMA
Eurozone deal effective but costly: Moody's
July 6, 2012-- A deal reached last month by eurozone leaders will reduce short-term risks for the regional economy but at a higher cost for wealthier members, ratings agency Moody's estimated Thursday.
"The measures contained in last Friday's statement by euro area leaders will reduce near-term risks of deposit runs or credit market shutdowns," Moody's said.
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Source: EUbuisness
Strong Polish Economy Faces Risks, Needs to Remain Flexible
Strong policies, protection under IMF's arrangement have contributed to strong performance
But risks threaten outlook, some vulnerabilities remain, room for maneuver more limited
Monetary policy, fiscal automatic stabilizers should support growth if needed
July 5, 2012-- The Polish economy has, on average, performed better than peers throughout the crisis despite the challenging environment in Europe, the IMF said in its annual report on the state of the economy.
This reflected very strong fundamentals, sound policies, and confidence in the economy due in part to the Flexible Credit Line (FCL) arrangement with the IMF. The report added that―given the more limited room for maneuver on the fiscal front―monetary policy should be the first line of defense in providing support to the economy in the event the eurozone crisis intensifies.
The Polish economy grew by a solid 4¼ percent in 2011 despite a substantial decline in public spending. The banking system has remained profitable, well capitalized, and liquid. Credit expanded at a healthy pace, though banks are now tightening their conditions for lending. The IMF expects real GDP growth to moderate to 2½ percent in 2012, as both external and domestic demand are expected to weaken.
view the IMF Country report-Poland 2012 Article IV Consultation
Source: IMF
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