The UK is the first country in the world to propose forcing companies to disclose any climate-related risks that affect their business. IFLR readers believe others should do the same
Should other governments follow the UK's lead and force companies to disclose threats to their business relating to climate change? Vote in our one-question poll now
Various market initiatives have prompted more meaningful discussions around environmental, social and governance considerations. Investors say disclosure is very important
Helen Hayes is northern and eastern Europe legal director of one of the most talked-about companies in the world. She tells IFLR about the responsibility that comes with that
The EU's coronavirus recovery package, which includes a concession on capital buffers under CRR, is helpful. But most banks are too concerned about keeping up appearances to make use of it
The Chancery Lane Project, a pro bono initiative, has released its latest round of environmentally friendly model laws, precedents and definitions for lawyers
We – along with some special guests – share our best means of maintaining both productivity and some semblance of work/life balance while working at home
Big technology companies – namely Amazon, Apple, Google and Facebook – have cropped up here and there in IFLR's coverage over the years. Up until a year or so ago that was largely in the context of competition law, looking at how antitrust regulators and regimes are approaching this new type of company. More recently we've also looked at their struggles with data protection legislation.
London-based legal vice-president James Sullivan explains the fintech company's regulatory challenges, relationships with the incumbents, and plans for the future
Buyside sources explain how well-intentioned but ultimately inconsistent rules are creating an uneven playing field and prompting clients to “switch off”. It may also present opportunities for arbitrage
IFLR's editorial team provides a rundown of the most influential individuals, organisations, geopolitical events and trends in financial regulation in 2019
BlackRock's government relations team was established in 2009, when the S&P 500 was at its lowest nadir and "it was clear that significant financial regulation was on the horizon".
A regular on lists like these, London-based Clifford Chance partner Owen Lysak advises clients on the full gamut of regulatory issues, from Mifid II to Brexit. But while many of his colleagues and contemporaries remain focused on the latter, Lysak tells IFLR that after three years of Brexit work, he's now beginning to look beyond.
Regulators’ answer to the Libor-rigging scandal is confusing market participants everywhere. IFLR explains what you need to know in the latest instalment of this free-to-read series
Practice Insight speaks to John Ball, Asia Pacific managing director of GFMA’s global FX division, on what the BMR means for non-EU benchmark providers and how the industry is preparing
Dual-class stock structures are on the rise as Silicon Valley’s brightest and best reach IPO stage. Critics argue the practice undermines public markets. IFLR readers respond
Investment firms that target companies reveal the best methods for preventing their arrival – but insist they are not pariahs and just want to help everyone to make money
A recent FCA speech admitting 2021 is a challenging timeline could see the market kicking the can down the road on the transition away from interbank rates
Bankers and treasurers say they’re gradually awakening to the work that needs to be done. Some are already looking at restructuring legacy deals, though most are still at the exploratory stage
As Mifid II’s first birthday fast approaches, Practice Insight reviews the most creative interpretations of the rules to emerge so far, from periodic auctions to all-you-can-eat research packages
Differences in approach between working groups in the US and UK are set to be a headache for multicurrency debt programmes. Banks are working with industry groups to prevent a patchwork of fallbacks from developing
Our new free-to-read series gives the inside story on how your competitors are implementing new rules. First up is how firms on both the buy and sellside are managing research budgets, pricing, consumption and coverage
The far-reaching directive continues to cause headaches globally, preventing compliance teams from moving on to other projects. They say best practice standards are needed
Regulators are becoming increasingly frustrated as banks and issuers argue that there's still too much uncertainty. Some even still believe the controversial benchmark isn't going anywhere fast
Lenders explain why commercial loans are lagging behind other products in the Libor transition, as well as the various approaches to calculating compounded Sonia
Regulators and the market are at least united on one thing: FIRDS needs work. It's time to stop shifting blame and work together on improving it. Free to read now
Rates trading heads reveal the contingency plans they are making – or failing to make – in light of the existing timeline. Ideas range from logical to just plain odd
Administrators from outside the EU are already withdrawing from the continent. Users should prepare for the worst: the loss of hundreds of critical reference points
The directive’s product governance framework is still causing headaches, with disagreements over when to conduct the reviews and how granular to be. Compliance teams are struggling with the concept of proportionality
Even the EU Commission has now acknowledged the practical issues making recognition and endorsement highly unattractive. The highly politicised equivalence process may now be their best bet
Trading desks speak frankly about the merits and drawbacks of dealing with the biggest liquidity providers and how they see market structure shifting in future
As banks kick off the colossal task of repapering thousands of contracts based on Libor, the need for a financial market-wide approach is becoming clear. Issues are emerging over Isda’s impact, the effect on loans and accounting processes
Despite predictions its rules-based approach would reach across the Atlantic, asset managers, banks and trading venues say very little has changed for them
Many are optimistically keeping faith that the rate will live on long beyond 2021, while others are unsure of exactly what's expected of them. Regulators are getting increasingly frustrated with slow movers
Hedge funds and asset managers waiting for banks to make the first move are making life harder for themselves in the long run, with litigation expected. Fallbacks may also not be the silver bullet many hoped
Endorsement and recognition may be big business for those willing to provide it, but it is risky and time-consuming. Some don't even know the regulation exists
The undisputed winner is settlement efficiency, though some argue the new rules solve a problem that doesn’t exist. Institutional investors and broker-dealers must start work now
The flexibility of venues is easing compliance pains and ramping up competition in the trading platform space. Variations on the hybrid trading model are becoming more popular
A roundup of this week's news in regulation, featuring SFTR, TLAC, Brexit and Libor reform, plus the industry finally making progress with regulators on Priips
A lack of investor education may be to blame, but here analysts on both buy and sellside argue that the unpredictability of bail-in regimes is a far bigger concern
The new directive is reshaping trading activities, giving low-frequency strategies an edge and driving a shift towards large-in-scale as the buyside gets more comfortable with the new environment
In the latest example of the new directive's extraterritorial reach, here portfolio managers and research providers explain that just six months in, the unbundled model has already become the norm
Tim Bowler, CEO of the Intercontinental Exchange's benchmarks arm tells Practice Insight why the entire banking industry's cooperation is needed to keep Libor alive
SIs are worried that the poor quality of data will impede future policy decisions, with a knock-on effect on market structure. Esma, meanwhile, is on the defensive
Transaction reporting is not new, but the personal data requirement may be a game-changer for US banks. Here in-house sources detail their latest solution. It was popular when Dodd-Frank became effective, but some say it flouts the EU's new directive
The third instalment of Practice Insight’s benchmark reform poll looks to a fragmented future, either with or without Libor. There’s consensus on an underlying transaction basis and division on counterparty credit risk
Part two of Practice Insight’s Libor reform poll finds more divisions in the market, with fragmentation expected for both regions and products. Disputes, particularly in swaps markets, are also highly likely. Part three will be published next week
Transparency obligations for packaged transactions are still causing confusion. Some firms are conducting the assessment at package level, while others are breaking the deal down into individual components. While both approaches are fine from a regulatory perspective, Isda continues to work with the industry towards consensus
Part one of Practice Insight’s Libor reform polls finds a market in disarray over benchmark reform. Almost all respondents are unprepared for its transition and are simply waiting for others to make the first move
Esma’s six-month grace period for certain issuers will soon be over. Trading venues are preparing to delist thousands of bonds without the 20-digit code, warning those trades will either shift to voice or non-EU markets
Product manufacturers wanting to continue selling in the EU are looking into a creative – but risky – new strategy to bypass the investor protection rules. While it might work for some, lawyers warn against it, arguing that the relief of not having to produce a KID is not worth the potential risk
According to in-house lawyers and structurers, the cumulative impact of post-crisis regulation has reduced the availability of certain types of structured products in the marketplace. While Emir makes anything complex significantly more expensive, Priips and Mifid II reduce the pool of potential investors, further pushing banks towards vanilla instruments
Investment firms released their first reports in late April, but their effectiveness is severely limited by the range of approaches taken across the market. Differing interpretations of the rules - which some sources believe may be intentional - make them difficult to compare. Brokers and regulatory analysts say collating all the data is a thankless task
Retail products are still being delisted from investment platforms across the EU as firms struggle with complex formulae and inconsistent, overzealous interpretations of the two new investor protection regimes. One company has removed around 10% of all its products since January. Here senior figures at EU wealth management firms explain how they are adjusting to the new normal
Some of the world's biggest banks are threatening to take their business elsewhere unless the brokers they interact with become trading venues under Mifid II. But brokers, many of them small, voice-based firms, argue they are being treated unfairly and don't have the infrastructure required to host a venue. At the most extreme end of the spectrum, it could force some out of business
As predicted, the new framework has forced a dramatic shift towards large-in-scale deals as traders look for workarounds to the contentious double volume caps. Here block trading specialists, bankers and operators of the EU's biggest dark pools explain what other factors are at play, including competition between active and passive strategies and the rise of technology
The firm's Europe president Mark Hemsley responds to accusations from the AMF last week that its practices are not entirely transparent. Periodic auctions, which reveal limited info to the market before an order takes place, have become drastically more popular since Mifid II's double volume caps took effect, But they're not exactly what regulators had in mind when drafting the rules
In-house counsel and stock exchange sources reveal the workarounds third-country firms have found to Mifid II's exhaustive and onerous transparency obligations. From dealing exclusively with Asian subsidiaries of EU firms to making the most of Esma's 2017 venue equivalence admission for shares, trading footprints are changing
The shortlist for the eighth annual Euromoney Legal Media Group Europe Women in Business Law Awards has been announced. For the 2018 nominees, please see below.
The method of trading – a hybrid between on-venue and over-the-counter – has been around for years now, but it's gained new prominence as a solution to many of Mifid II’s transparency obligations. Here Barclays’ head of market structure, regulators, trading venues and buysiders debunk the myths and explain exactly how it works
This week's news from Practice Insight: inside the letter sent to the EC on Priips scope, banks warn others against becoming too relaxed on CCP relocation, and Mifid firms' LEI drive runs out of steam
Banks explain that they've stopped chasing clients for LEIs despite it being a legal requirement under Mifid II, arguing that a lack of regulatory attention – including a six-month reprieve of sorts – signifies a relaxed attitude to the rule. Here LEI providers argue that without action from Esma the entire LEI project could be undermined
Just three months since implementation, Mifid II has already prompted both buy and sellside firms to change their approach to investment research. Many banks have already scaled back their offerings, while independent providers have experienced significant growth. Consolidation is inevitable, but in the meantime a price war among sellside firms may prompt regulatory intervention
Esma's central reference database is integral to Mifid II's drive towards transparency, but according to transaction reporting heads and trading venue regulatory specialists it's full of mistakes and gaps. With little progress made on correcting those mistakes so far, firms fear a backlog of old reports will need to be re-evaluated in future
According to traders and brokers, the new best execution regime is producing a worse end-result for clients than before. As front desk staff look to ease the recordkeeping burden, some are going to fewer market makers for an initial price, while others are neglecting to record quotes that don't result in trades - which is contrary to the rules
Four Mifid-focused in-house sources at EU investment banks reveal just how little progress has been made on the legal entity identifier front since Esma granted a six-month reprieve from the rule in late December
According to in-house sources at banks, buyside firms and trading venues, best execution reports are both too technical for retail and not granular enough for sophisticated buysiders, rendering them essentially useless for the end investor. They may over time improve accountability, but for now market participants are calling them a dumbed-down version of what many venues already provide
Brokers on some EU exchanges have been forced to restructure relationships around controversial Esma guidance on direct electronic access. If read literally, the Q&A prevents any intermediary that’s not regulated in the EU from providing any firm with DEA on an EU exchange
Banks, trading venues and APAs remain baffled by wildly inconsistent data reports produced under Mifid II. Different APAs ask for different information; LEI codes have expired and firms argue elements of trade reports simply aren't relevant to their business
According to heads of rates trading, hedge funds and senior lawyers, practically all new deals are still benchmarked against Libor because there’s just no viable alternative yet
According to market participants at European banks and commodity firms, Mifid II’s position limits for commodity trading are already hitting on-venue trading for certain asset classes. It’s especially an issue for precious metals which are overwhelmingly traded OTC
Firms explain how they're ensuring the masses of data created by Mifid II remains compliant with the EU's new data protection regulation when it becomes effective in May. Solutions are available but with just a few months to go, the industry is still far from consensus
Banks, trade associations and lawyers explain the range of bespoke temporary workarounds the market has found to Mifid II’s complex trading obligation rules and how they apply to packaged trades
Banks, regulators and research providers speak honestly on the directive's 'idiotic' rules on research. As usual, the market is divided: as some predict a global rollout of the unbundling approach as non-EU firms bow to client pressure, others hold out for a rollback. The AMF also reveals its stance on enforcement
Banks are advising issuers not to take advantage of a rule relaxation which allows the sale of up to 20% of existing shares without a prospectus. Although the documentation burden can at times put issuers off, here in-house ECM lawyers and analysts explain the real reason why no one has made the most of the amendment
The last instalment of the Mifid II & market structure survey sees 30 market participants look ahead to the future, with differences in opinion on the future of on-venue trading, systematic internalisers' impact on liquidity, and the usefulness of dark pools
Fund managers explain just how little interest retail investors have shown in the key information document that sits at the heart of the EU's new Priips regime. "Everyone has been so confused by KIDs that no one has even bothered to use them," said one. The majority of the market is viewing the document purely as a regulatory requirement, not the useful comparison tool intended by the regulators
Many small to medium-sized investment firms have been forced to start again from scratch following the FCA’s July guidance, with retail platforms removing US-manufactured products in the meantime
Banks have not been able to engage in proprietary trading since the financial crisis. But reform could be on the cards, says Tom Quaadman, executive vice president of the US Chamber of Commerce’s Center for Capital Markets Competitiveness
Thirty lawyers, regulatory strategists and market structure specialists share their views on trade and transaction reporting in part two of our special report. Respondents from banks, trading venues and APAs are divided over the true meaning of traded on a trading venue, what systematic internalisers can and can’t do and how trading venues should make their data available
Several banks tell us their biggest gripes with the two new investor protection regimes that are forcing an overhaul of business models, from concerns over liability to sheer scope. The rules are applied inconsistently, with some banks disagreeing over the suitability of the exact same product for nonprofessional investors - leaving a huge margin for error
According to banks, trading venues and lawyers, a small detail in the new directive that requires all listed securities to have a legal entity identifier is already prompting regulatory arbitrage and sending non-EU issuers to exchanges in Hong Kong, Singapore and New York
Almost two years after implementation, in-house lawyers, bankers and buyside firms reflect on the regime's impact on deals. Call recordings have caused a particular headache with some investors reluctant to provide full feedback, infuriating bankers, but general feeling is that the true impact won't be known until markets move and pre-soundings become even more important
As banks and product manufacturers weigh the extraterritorial impact of the EU's new retail investor protection regime, some are withholding products in lieu of further guidance while others consider rolling it out globally
In the absence of clarity from Esma on a key piece of the new reform, firms are being left to decide internally how to treat fee disclosure. That's led to wild inconsistencies in approach, according to four banks that spoke to Practice Insight
Part one of Practice Insight's landmark survey on Mifid II and its impact on market structure focuses on systematic internalisers. All respondents are market participants at banks that have opted in to the regime
Bankers are divided over an element of the sweeping new directive that some think has the potential to end order inflation in initial bond sales for good
Buy and sellside firms and industry associations tell Practice Insight what they are lobbying the European Commission on, from scope to performance scenarios. They now have the support of the ESAs too
Almost a year after implementation, sources are still having “shocking” conversations on the regulation, particularly in the US. Many are having to start from scratch after recognising they have not been compliant
A letter seen by Practice Insight has shown that banks and trade associations are imploring the European Commission to clarify the scope of the new retail investor protection framework. Uncertainty within the Priips regime is pushing issuers to err on the side of caution and designate new deals to professional investors only
Product manufacturers and distributors at some of the world’s largest buyside firms have explained to Practice Insight how the new Priips regime is causing chaos. This includes everything from negative transaction costs and absurdly optimistic projections to standing in the way of their Mifid II obligations
Banks, stock exchanges, industry associations and even some MEPs are uniting against the proposal, which has the potential to disrupt capital markets for years. While the broader harmonisation project is generally supported, here they explain how the practical challenges could hinder the capital market union and damage Europe’s reputation as a securities listing hub
Capital structuring heads explain that uncertainty on the eligibility requirements of instruments is restricting their medium-term debt sales planning. The risk is that it floods the market in 2019
In the latest of many unintended consequences, here DCM desks explain how they’re removing features designed to protect investors to ensure retail can still access deals
Some banks are advising clients to avoid settling on an EEA depository where possible to avoid the controversial mandatory buy-in regime. That approach may become more credible post-Brexit
It’s unclear how firms’ inclination to deal with a systematic internaliser squares with the obligation to provide the best possible service for the client
The nominations for the Euromoney Legal Media Group Asia Women in Business Law Awards 2017 have been announced (please scroll down for the full list). On November 9, Asia's leading female lawyers will gather at the JW Marriott in Hong Kong to celebrate the achievements of women in the legal profession.
C-suite pay is getting a rise out of shareholders Like much of 2017, Europe in May can be characterised by at times nail-biting general elections. This time it was France's turn in the polling booth and for international investors, a brief sigh of relief as the country opted for centre-left candidate Emmanuel Macron, seeing off a challenge from the far right. And with never a dull moment on the continent, next up will be the UK (yes, again) in early June.
Last week's leaked proposal from the European Commission came as little surprise to the market. According to the German MEP, Parliament will ensure it is enshrined in law