Structural Regulation

ESMA Seeks BMR Exemptions for Noncritical, Third-country Benchmarks

18/02/2020

ESMA says BMR’s wide scope has led to an unintended consequence whereby third-country benchmarks are not incentivised to keep providing their benchmarks in the EU.

Trading & Investment

Korea to Strengthen Regulatory Framework for Hedge Funds

15/02/2020

The FSC will cap illiquid investments at 50% for open-ended funds, require them to conduct regular stress tests, raise transparency of complex fund structures, and enhance supervisory monitoring.

Operational Risk

Better Supervision Associated with Lower Operational Risk: BIS Paper

14/02/2020

Banks take an average 251 days to discover the occurrence of operational loss events, and 184 days to move from discovery and recognition, according to a new BIS paper.

Credit Risk

CBIRC Asks Banks to Relax Loan Classification Standards

13/02/2020

Local banks are asked to be more tolerant of bad loans and to reduce their profit targets, as the novel coronavirus epidemic keeps borrowers from resuming normal business operations.

Cybersecurity

IMF, MAS Offer Guidance on Assessing Cyber Risk

12/02/2020

A new IMF-MAS paper presents data sources and methods that can be used to analyse and assess cyber risk, illustrated with applications to Singapore.

Clearing & Post-Trade

India to Introduce Netting Legislation, Margin Rules for Derivatives

11/02/2020

Prompted by a Budget proposal to introduce netting legislation “soon”, the RBI says it will likewise issue directions on the exchange of margin for non-centrally cleared derivatives.

Climate Risk

FSAP Stress Tests to Prioritise Climate Risk Assessments: IMF

08/02/2020

The IMF is adding climate-related factors to its existing stress-testing methodology to help government and private-sector leaders prepare for potential financial shocks.

PEPs & Sanctions

RUSI-ACAMS Survey Reveals Proliferation Finance Implementation Gaps

08/02/2020

A global survey of sanctions professionals reveals a lack of industry awareness of proliferation finance risks, and a lack of focus on this area in compliance programmes.

Credit Risk

HKMA Urges ‘Sympathetic Stance’ for Borrowers Affected by Coronavirus

07/02/2020

The HKMA is encouraging banks to adopt a sympathetic stance to customers facing coronavirus-related difficulties and to consider offering relief on debt repayment and fees.