News
NYSE Proposes Listing Rules for Derivatives and Structured Products
Nasdaq has proposed new rules for the the qualification, listing, trading, and delisting of a broad list of structured notes and other related products. Although the present NASDAQ Rule 5710 includes initial listing standards for equity index-linked securities and commodity-linked securities, NASDAQ’s proposal would amend Rule 5710 to add continuing listing standards for equity index-linked securities and commodity-linked securities. Nasdaq has also proposed Rule 5711 which would impose listing standards for a host of other equity-linked, commodity-linked, and other notes.
Strong and Lasting Recovery Depends on Successful Financial Reforms
Dismissing calls to weaken or reconsider global financial reforms in the face of short-term setbacks in global recovery, Jaime Caruana, General Manager, Bank for International Settlements, argues that it is more important than ever to continue reforms and see through what has already begun. Caruana lays out in a recent address before the 2012 ADB Financial Sector Forum four principles he feels should guide these ongoing reform efforts.
Italian Regulator Extends Financial Sector Short Selling Ban
In light of current conditions in the financial markets, CONSOB, the Italian banking and securities regulatory body, has extended its ban on short selling of financial sector stocks. Initially adopted on August 12, 2011 and subsequently extended until January 15, 2012, the ban has been further extended to February 24, 2012.
NYSE Further Restricts Broker Discretionary Voting
Citing “recent congressional and public policy trends disfavoring broker voting of uninstructed shares,” the NYSE has severely limited broker discretionary voting of uninstructed shares with regard to corporate governance proposals. Effective January 25, 2012, matters which would have previously been designated “Broker May Vote” will instead be designated “Broker May Not Vote.”
K&L Gates’ Global Government Solutions 2012 Outlook
K&L Gates’ 2012 Annual Outlook provides a valuable collection of articles that address important industry and regulatory trends and their correlation with government and political developments. This edition highlights regulatory issues in European Union countries, and also covers diverse topics such as: systemic financial risk regulation, anti-corruption and white-collar enforcement initiatives, tax policies, competition and antitrust law matters, intellectual property and international trade developments, energy and climate change, and health care and food safety laws.
U.S. to Regulate Foreign Swap Counterparties?
The Chairman of the CFTC, Gary Gensler, testified before the Senate Committee on Banking, Housing and Urban Affairs on May 22 on the progress of his agency’s regulatory reform of swaps. Gensler’s testimony included details on the CFTC’s plans for implementing these reforms cross-border.
Federal Reserve Proposes Enhanced Prudential Standards and Early Remediation Requirements
On December 20, 2011, the Federal Reserve Board of Directors published its long awaited proposal on enhanced prudential standards and early remediation requirements. This proposal, required by the Dodd-Frank Act, would impose greater levels of regulation and supervision on:
First FRB Financial Stability Analysis Serves as a Model for the Industry
In a December 23, 2011 approval order in connection with the proposed acquisition of RBC Bank (USA), a North Carolina based unit of Royal Bank of Canada, by The PNC Financial Services Group, Inc. includes the FRB’s first ever Dodd-Frank financial stability analysis. This analysis may serve as a model for how the FRB will determine going forward “the extent to which a proposed acquisition, merger, or consolidation would result in greater or more concentrated risks to the stability of the United States banking or financial system” now required under Dodd-Frank.
Section 3 of the Bank Holding Company Act, as amended by Dodd-Frank, prohibits the FRB from approving a merger, acquisition, or consolidation proposal that would result in a monopoly or would be in furtherance of any attempt to monopolize the business of banking in any relevant banking market.
CFTC Adopts Business Conduct Standards for Swap Dealers and Major Swap Participants
At its January 11 meeting, the CFTC adopted final business conduct standards for swap dealers and major swap participants. These rules were proposed in December of 2010, and have garnered much attention and significant comment from the industry.
Basel Committee Issues New Core Principles for Effective Banking Supervision
The Basel Committee on Banking Supervision has issued for consultation its revised Core Principles for Effective Banking Supervision. The consultative paper updates the Committee’s 2006 Core Principles document as well as the associated Core Principles Methodology, merging the two into a single comprehensive document. The revised set of twenty-nine Core Principles have also been reorganized to foster their implementation through a more logical structure, highlighting the difference between what supervisors do themselves and what they expect banks to do.