Banking system reforms will have to adapt to new risks to mitigate the effects of the next financial crisis, said BCBS secretary general William Coen, hinting at a future 'Basel IV'.
Basel III and OTC derivatives reforms were on track and broadly achieving their intended goals. High public debt and rising non-bank financial intermediation remain a focus area for the FSB.
The industry body has updated its 2015 framework for CCP risk management to include more robust and transparent margining and higher skin in the game.
ISDA will likely look to the 'compounded setting in arrears rate' and the 'historical mean/median approach' to spread adjustment for RFRs that will replace discontinued IBORs.
A digital-first approach to customer onboarding can protect companies from internal delays, customer dissatisfaction, hefty regulatory fines and reputational risk, says Claus Christensen.
The FSB has recommended a data framework for national regulators to assess bank compensation policies and practices in regard to misconduct risk.
While a number of legal barriers on reporting and accessing of trade data have been removed, some still remain. China’s position on trade data access remains uncertain.
ISDA, FIA, GFMA and EMTA have jointly published a briefing advocating an extension of the Benchmark Regulation transition period for critical and non-critical benchmarks.
The securities market is particularly vulnerable to cyber threats due to the large number of participants and infrastructures and the complex interactions involved.
The FSB found progress in OTC reform implementation on among 24 member jurisdictions, with great strides on trade reporting and higher capital on non-centrally cleared derivatives.