Financial Markets Regulation
In response to the crisis governments and regulators have unleashed an avalanche of regulation that is sweeping over all areas of the financial markets, transforming them in the process. Derivatives in particular have been singled out for attention.
This course looks at these regulations, and the implications for market participants and their advisers.
A working knowledge of derivatives is ideally required for this course. This would be covered by the Derivatives Markets course.
Who should attend?
Delegates needing to know more about how regulation will affect their and their clients’ business, including bankers, credit and legal professionals, treasurers and their staff, accountants and auditors, financial controllers.
Overview of the crisis diagnosis, the main measures to avoid further crises, the rule-making process and harmonisation issues
Basel III and the Capital Requirements Directive (CRD) IV
- Brief history of Basel’s evolution
- A sample Risk-Weighted capital requirement calculation
- Basel II’s limitations
- Basel 2.5 and the impact of credit migration
- The capital ratios
- More better capital – what counts and what doesn’t
- The Leverage ratio
- Liquidity – the Liquidity Coverage Ratio (LCR), Net Stable Funding Ratio (NSFR) and other monitoring tools
- The EU’s report card
- UK implementation
OTC markets risks and transparency
Overview of the risks and drawbacks of OTC markets – counterparty risk and lack of transparency
Risks - European Market Infrastructure Regulation (EMIR) and Dodd Frank:
- Central Clearing, variation and initial margin
- Exemptions for e.g. corporates and Forward FX
- Margining and rehypothecation risks
- Porting issues
- Transparency - MiFID II and Dodd Frank:
- The evolution of MiFID
- High Frequency Trading (HFT)
- Organised Trading Facilities (OTF’s) and Swap Execution Facilities (SEFs), pre-and post-trade transparency
- Trade repositories
- What MiFID doesn’t do: clearing house inter-operability
- De-risking the banks
- Dodd-Frank and the Volker rule - “prop” trading, private equity
- EU: Liikanen ring-fencing
- UK: Vickers – ring-fencing
- Bank resolution and recovery – EU, US and UK
As every course we run is tailored to meet the specific needs of each client, we can only provide an estimate after fully understanding your specific requirements. Please complete the form below of call +44 (0) 208 894 4977 to discuss how Taylor Associates can help you.