EU Draft Would Allow Banks’ Proprietary Trading: Handelsblatt
2015-03-31 19:23:26.186 GMT
By Rainer Buergin
(Bloomberg) -- EU presidency proposes requiring banks to
separate proprietary trading from remaining businesses,
Handelsblatt reports, citing draft document.
* Proposal replaced “ban” on proprietary trading in earlier
version with “obligation to separate”
* Market-making, management of liquidity risk and foreign
exchange positions as well as clearing of derivatives
transactions don’t fall under definition of proprietary
trading
* Changes reflect presidency’s acceptance of U.K., French and
German resistance to tougher rules
* In a concession to banks, the proposal also says supervisory
authorities can take “measures to reduce excessive risks”
and have the “right,” not the obligation, to “separate
certain trading activities” that are risky
* NOTE: Proprietary Trading Ban Gains Traction in EU Lawmaker
Talks
For Related News and Information:
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To contact the reporter on this story:
Rainer Buergin in Berlin at +49-30-70010-6228 or
rbuergin1@bloomberg.net
To contact the editor responsible for this story:
Alan Crawford at +49-30-70010-6237 or
acrawford6@bloomberg.net
2015-03-31 19:23:26.186 GMT
By Rainer Buergin
(Bloomberg) -- EU presidency proposes requiring banks to
separate proprietary trading from remaining businesses,
Handelsblatt reports, citing draft document.
* Proposal replaced “ban” on proprietary trading in earlier
version with “obligation to separate”
* Market-making, management of liquidity risk and foreign
exchange positions as well as clearing of derivatives
transactions don’t fall under definition of proprietary
trading
* Changes reflect presidency’s acceptance of U.K., French and
German resistance to tougher rules
* In a concession to banks, the proposal also says supervisory
authorities can take “measures to reduce excessive risks”
and have the “right,” not the obligation, to “separate
certain trading activities” that are risky
* NOTE: Proprietary Trading Ban Gains Traction in EU Lawmaker
Talks
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
To contact the reporter on this story:
Rainer Buergin in Berlin at +49-30-70010-6228 or
rbuergin1@bloomberg.net
To contact the editor responsible for this story:
Alan Crawford at +49-30-70010-6237 or
acrawford6@bloomberg.net