2009 Report on Public Finances
The report reviews how Member States are tackling the challenges from the financial and economic crisis. It assesses the prospects for public finances and policy needs ahead based on past experiences with financial crises. (23 june 2009)
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Rating agencies
EU Commission's proposal on the revision of the directives
The European Commission has put forward a proposal for a Regulation on credit rating agencies. This proposal is part of a package of proposals to deal with the financial crisis and adds to Commission's proposals on Solvency II, Capital Requirements Directive, Deposit Guarantee Schemes and accounting.
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Clearing and settlement
EU Commission's proposal on the revision of the directives (24 April 2008)
The directives on collateral and settlement finality are the two main EU tools in the area of clearing and settlement and financial collateral. The settlement finality directive provides protections to both payment and securities settlement system in case of default of a participant. The collateral directive regulates and facilitates the cross-border use of financial collateral.
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Hybrids
CEBS draft proposal for a common Eu definition of tier I hybrids
The Committee of European Banking Supervisors (CEBS) has published a proposal for a common definition of Tier 1 hybrids, the group of securities that combine the elements of debt and equity securities.
EC consultation on potential changes to the Capital Requirements Directive - Hybrids bonds
Last October, European Commission published a public consultation on potential changes to the Capital Requirements Directive, that includes a proposal about hybrid capital instruments of banks, with a principle-based approach.
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Capital markets
Private placement
The European Commission has published in May 2007 a "call for evidence" regarding the proposal to introduce an European private placement regime.
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Private equity
Private equity exposures
The risk-weighting provided for by the Directive on capital requirements for private equity exposures, in relation to IRB approach, seems to be unduly high. It would make such investments less convenient for banks and, consequently, would reduce the financial resources aimed at creating and developing firms. Thus, ABI suggests a general reduction of risk-weighting for private equity exposures
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Market abuse
EU Directive no. 2003/6/EC (Market Abuse Directive) aims at guaranteeing the integrity of the European financial markets and at enhancing investors’ trust in the markets, by preventing the “disclosure of inside information” as well as “market manipulation”. The directive applies to any instrument admitted to trading on a regulated market or for which a request for admission to trading has been made, regardless of whether it is actually traded on that market or not.
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Mifid
On 1 November 2007, the Markets in Financial Services Directive has entered into force. (Directive 2004/39/EC)
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Short selling
Following the recent financial crisis, which had a strong impact on international financial markets, many European and international Authorities have adopted banning measures regarding short selling activity. Short selling means any transaction of sale of securities that is not supported by the availability of stock, when the order is sent. This practice is considered by Authorities as a potential destabilizing factor, and therefore was subject to various restrictions.
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