Big Picture

Covid Bankruptcies Could Result in $1tr in Credit Losses: BIS

01/03/2021

Corporate bankruptcies are expected to rise as credit support measures are wound back, some sectors downsize, and firms run out of liquidity buffers.

Australia Passes Bill to Recover ‘Lost’ Superannuation for Members

01/03/2021

Accounts transferred from Eligible Rollover Funds to the ATO will be proactively reunited with members’ superannuation accounts within 28 days.

AML / KYC

OECD Calls for Global Crackdown on ‘Professional Enablers’

27/02/2021

The OECD says each jurisdiction should implement a national strategy to deal with lawyers, notaries, accountants, and FIs that facilitate tax evasion, bribery and corruption.

AML / KYC

FATF Concludes Second Plenary Under German Presidency

26/02/2021

The FATF has finalised guidance on risk-based supervision, terrorist financing, and arms trafficking, as well as draft guidance on proliferation financing, and virtual assets.

Market Infrastructure

New Initiatives Announced to Promote Hong Kong Capital Market

25/02/2021

Paul Chan spoke of measures to boost green bond issuance, launch southbound Bond Connect, expand Stock Connect, and subsidise REITs, fund managers and family offices coming to Hong Kong.

Securities / Derivatives

Hong Kong to Increase Stamp Duty on Stock Transactions

24/02/2021

The decision is estimated to raise trading costs by 6-15 percent, depressing trading volumes and squeezing HKEX’s earnings per share by 3-7 percent.

Big Picture

Australia On Track for Smooth IBOR Transition: S&P Global

24/02/2021

Like other jurisdictions, AONIA does not yet have an established term market, however banks and corporates can reference the three-month BBSW where a term rate is needed.

Capital / Liquidity

DTCC Suggests Move to T+1 Settlement in US Markets

24/02/2021

Reducing the settlement cycle to T+1 could reduce the NSCC’s value-at-risk clearing fund charge by 30-40 percent for sample portfolios, DTCC said.

Market Infrastructure

China State Council Issues Guideline to Support Green Initiatives

23/02/2021

The guideline indicates that green finance initiatives will be given a greater weighting in financial institutions’ performance evaluations.