scholarly journals Central Counterparties are Too Big for the European Securities and Markets Authority (Alone): Constructive Critique of the 2019 CCP Supervision Regulation

2021 ◽  
Author(s):  
Romualdo Canini
Keyword(s):  
Financial Stability ◽  
National Level ◽  
The European Union ◽  
Over The Counter ◽  
Prudential Supervision ◽  
Fiscal Responsibility ◽  
Monetary Constitution ◽  
Central Counterparties ◽  
Market Infrastructure ◽  
Single Approach

AbstractOnce seen as the solution to the systemic risk of over-the-counter derivatives, central counterparties (CCPs) have become a source of concern for the financial stability of the European Union (EU). Distress of a single CCP might be transferred to clearing members and others CCPs, thereby endangering EU monetary and fiscal stability. However, the European Market Infrastructure Regulation (EMIR) has left fiscal responsibility as well as day-to-day supervision of EU-based CCPs (EU-CCPs) at the national level, albeit cross-border colleges of authorities can overturn key decisions of national supervisors. The Commission concluded that these supervisory arrangements needed to be reformed because they hamper the development of a single coherent EU approach to CCP supervision. Although the Commission had proposed to centralise EU-CCP supervision in the European Securities and Markets Authority (ESMA), the final 2019 CCP Supervision Regulation seeks to improve EMIR’s ineffective collegial framework by establishing an internal CCP Supervisory Committee within ESMA. Nevertheless, the continuing lack of loss mutualisation would keep on hindering the development of a single approach to EU-CCP supervision. Moreover, the new regulation adds another layer of complexity to the EMIR framework and clashes with the European monetary constitution. If an agreement on loss mutualisation was reached, EU-CCP supervision should be centralised in two EU bodies along objective lines: while the European Central Bank should be tasked with EU-CCP prudential supervision, ESMA should be responsible for EU-CCP conduct of business supervision. This framework would improve EU-CCP supervision and fit in with the current EU governance at once.

scholarly journals Fintech: A Literature Review

2021 ◽  
Vol 15 (1) ◽  
pp. 80
Author(s):  
Ferdinando Giglio
Keyword(s):  
Financial Services ◽  
Financial Stability ◽  
Business Models ◽  
New Technologies ◽  
National Level ◽  
Industrial Sector ◽  
World Bank Group ◽  
The European Union ◽  
Acceleration Force ◽  
Bank Group

This article analyzes the Fintech evolution. After describing the process of this phenomenon, some of the main definitions are provided both nationally and internationally. Finally, six main models of Fintech are analyzed. Through a systematic literature, 14 articles have been selected that deal with the phenomenon of Fintech. Six Fintech business models implemented by the ever growing number of Fintech startups have been identified, payment, wealth management, crowdfunding, loan, capital market and insurance services. Internationally, Fintech has already been defined by the International Monetary Fund (IMF), the World Bank Group (WBG), the Financial Stability Board (FSB), the Organization for Economic Cooperation and Development (OECD), the International Organization of Securities Commissions (IOSCO), the Bank for International Settlements (BIS). On a national level, on the other hand, Fintech has been analyzed by various countries, USA, United Kingdom, Singapore, China, Switzerland, China, Australia and the European Union. Fintech refers to a broad set of innovations - observable in the financial field in a broad sense - which are made possible by the use of new technologies both in the offer of services to end users and in the internal production processes of financial operators as well as in the design of market enterprises, without thereby compromising new possible configurations of intersectoral activities. Fintech appears to be representative of innovative methods - based on technology - of carrying out activities directly or indirectly connected to financial services rather than being a pre-defined industrial sector. Following the logic of the digital economy, Fintech contributes to designing an open and continuous network of modular services for businesses, individuals and banking, financial and insurance intermediaries, becoming a powerful acceleration force for the integration policies of the financial services markets in the EU.

A Stronger Role for the European Supervisory Authorities in the EU27

2018 ◽  
Author(s):  
Danny Busch
Keyword(s):  
Decision Making ◽  
European Union ◽  
European Market ◽  
Public Consultation ◽  
The European Union ◽  
European Approach ◽  
European Governance ◽  
Central Counterparties ◽  
Market Infrastructure

The chapter addresses two topics that are crucial to achieving more supervisory convergence in the European Union 27 (EU-27): (1) a more pan-European governance or decision-making structure of the European Supervisory Authorities (ESAs); and (2) more direct supervisory powers to the ESAs, particularly (but not exclusively) to the European Securities and Markets Authority (ESMA). These topics are analysed and discussed within the framework of the Commission's public consultation on the functioning of the ESAs; the Commission proposal of 29 June 2017 for a Regulation on a pan-European Personal Pension Product; the Commission's FinTech consultation of 23 March 2017; and the Commission proposal of 13 June 2017 to amend the European Market Infrastructure Regulation and the ESMA, which aims to introduce a more pan-European approach to central counterparties supervision.

Controversies Over Clearing: Regulation of Derivatives

2020 ◽  
pp. 129-149
Author(s):  
Scott James ◽  
Lucia Quaglia
Keyword(s):  
Euro Area ◽  
Financial Stability ◽  
International Level ◽  
Over The Counter ◽  
Legal Challenges ◽  
Central Counterparties ◽  
Regulatory Capacity ◽  
The Uk ◽  
European Markets ◽  
Minimal Resistance

UK regulators supported more stringent rules regarding the clearing of over-the-counter derivatives through Central Counterparties (CCPs) on financial stability grounds. Minimal resistance to this came either from elected officials, who paid little attention to the issue, or from the derivatives industry, as many viewed reform as desirable. UK regulators were therefore able to pursue the trading-up of OTCD rules and greater harmonization to manage the cross-border externalities generated by derivatives clearing. At the international level, UK regulators acted as pace-setters to secure more prescriptive standards, leveraging their significant market power and regulatory capacity, based on London’s prominent position. But at the EU level, UK negotiators pursued a strategy of foot-dragging in opposition to European Markets Infrastructure Regulation (EMIR) provisions on the scope, access, and location of CCPs. The UK also used legal challenges to block attempts to relocate the clearing of euro-denominated derivatives to the euro area.

Prudential supervisory tasks (Article 127(6) TFEU, monetary policy vs prudential supervision): ‘Kissing awake the Sleeping Beauty provision’

2020 ◽  
Author(s):  
Rosa M Lastra ◽  
Georgios Psaroudakis
Keyword(s):  
European Union ◽  
Monetary Policy ◽  
Financial Stability ◽  
Sleeping Beauty ◽  
Historical Background ◽  
Banking Union ◽  
The European Union ◽  
Prudential Supervision ◽  
Central Function ◽  
Enabling Clause

This chapter attempts to describe the interplay between Economic Monetary Union (EMU) and Banking Union and the central function of the European Central Bank (ECB) in both areas. It offers a historical background to the development of European Union (EU) level prudential supervision on the basis of the Treaty on the Functioning of the European Union (TFEU) and examines issues at the intersection between monetary policy and banking supervision. Relatedly, financial stability is discussed as a public good that informs both areas of ECB activity. The chapter further examines difficult organizational choices, arising from the development of a Banking Union not foreseen in the Maastricht Treaty (which only included an ‘enabling clause’): Should the same institution (ie, the ECB) have both monetary and prudential competence? If so, what governance arrangements are necessary for this institution, also given that final authority over all matters rests with the Governing Council according to the Treaty itself?

Die neue Marktinfrastruktur im OTC Derivatehandel

2019 ◽  
Author(s):  
Max Weber
Keyword(s):  
Financial Stability ◽  
Global Financial Crisis ◽  
Current System ◽  
Over The Counter ◽  
Binding Effect ◽  
Otc Derivatives ◽  
Safety Mechanism ◽  
Clearing System ◽  
Contractual Agreements ◽  
Market Infrastructure

In response to the recent global financial crisis, in 2009 the G20 agreed on the introduction of a mandatory clearing requirement for over-the-counter (OTC) derivatives through a central counterparty (CCP) by the end of 2012. In this study, the author examines this new market infrastructure and its resilience in times of crisis. While doing so, he focuses on the relationship between law and financial (in)stability and adopts some key findings from academic analyses of the crisis. This reveals that the rigid enforcement of (financial) contracts in times of crisis may destabilise the financial system. As a result, the binding effect of contractual agreements such as margin calls—implemented as a safety mechanism—must be relaxed, if necessary. This situation is aggravated by the design of CCPs as they concentrate the risks of the OTC derivatives market and have thus become systemically important nodes. In addition, the author identifies reverse interests within the clearing system to the detriment of financial stability. Ultimately, he proposes the modification of the current system by integrating the CCP into a public–private partnership.

OTC Derivatives Clearing, Brexit, and the CMU

2018 ◽  
Author(s):  
Guido Ferrarini ◽  
Davide Trasciatti
Keyword(s):  
Case Scenario ◽  
Worst Case ◽  
Over The Counter ◽  
Otc Derivatives ◽  
Central Counterparties ◽  
Capital Markets Union ◽  
Article 50 ◽  
The Uk ◽  
Market Infrastructure ◽  
The Eu

This chapter contributes to the debate on the future of European over-the-counter (OTC) clearing and relevant infrastructures in light of the Capital Markets Union and its re-configuration after Brexit. It begins by introducing some basic notions about clearing dynamics. It then analyses the available divorce options between the EU and the UK once Article 50 has been triggered, and their impact on clearing particularly in light of the European Market Infrastructure Regulation's equivalence regime. Next, it examines the worst-case scenario that would materialize if UK central counterparties (CCPs) were excluded from the single market, and considers possible network strategies that CCPs could adopt to remedy the consequences of Brexit.

scholarly journals Addressing Multimorbidity to Improve Healthcare and Economic Sustainability

2016 ◽  
Vol 6 (1) ◽  
pp. 21-27 ◽  
Author(s):  
Francesca Colombo ◽  
Manuel García-Goñi ◽  
Christoph Schwierz
Keyword(s):  
Integrated Care ◽  
National Level ◽  
Evidence Base ◽  
Sustainable Growth ◽  
Political Agenda ◽  
The European Union ◽  
Fiscal Responsibility ◽  
Growth Pact ◽  
Early Results ◽  
And Performance

Patients with multimorbidity are responsible for more than half of all healthcare utilization, challenging the healthcare budgets of all European nations. Although the European Union is showing signs of a fragile economic recovery, achieving sustainable growth will depend on delivering a combination of fiscal responsibility, structural reforms, and improved efficiency. Addressing the challenges of multimorbidity and providing more effective, affordable, and sustainable care, has climbed the political agenda at a global, European, and national level. Current healthcare systems are poorly adapted to cope with the challenges of patients with multimorbidity. Little is known about the epidemiology and natural history of multimorbidity; the evidence base is weak; clinical guidelines are not always relevant to this population; and financing and delivery systems have not evolved to adequately measure and reward quality and performance. Pockets of innovation are, however, beginning to emerge. In Spain, for example, the ongoing economic crisis has forced regional governments to deliver substantial efficiency savings and, with this in mind, integrated care programmes have been introduced across the country for people with chronic disease and multimorbidity. Early results suggest that formalized integrated care for patients with multimorbidity improves their perceptions of care coordination, reduces hospital and emergency admissions and readmissions, and reduces average costs per capita. Such innovations require meaningful investments at a national level – something that is now supported within the framework of the European Union's Stability and Growth Pact.

European experience in transition to circular economy

2020 ◽  
Vol 19 (4) ◽  
pp. 598-617 ◽  
Author(s):  
S.V. Ratner
Keyword(s):  
European Union ◽  
Circular Economy ◽  
Raw Materials ◽  
Action Plan ◽  
National Level ◽  
The European Union ◽  
Scientific Methods ◽  
European Experience ◽  
General Scientific ◽  
The Eu

Subject. The article considers the concept of circular economy, which has originated relatively recently in the academic literature, and is now increasingly recognized in many countries at the national level. In the European Union, the transition to circular economy is viewed as an opportunity to improve competitiveness of the European Union, protect businesses from resource shortages and fluctuating prices for raw materials and supplies, and a way to increase employment and innovation. Objectives. The aim of the study is to analyze the incentives developed by the European Commission for moving to circular economy, and to assess their effectiveness on the basis of statistical analysis. Methods. I employ general scientific methods of research. Results. The analysis of the EU Action Plan for the Circular Economy enabled to conclude that the results of the recent research in circular economy barriers, eco-innovation, technology and infrastructure were successfully integrated into the framework of this document. Understanding the root causes holding back the circular economy development and the balanced combination of economic and administrative incentives strengthened the Action Plan, and it contributed to the circular economy development in the EU. Conclusions. The measures to stimulate the development of the circular economy proposed in the European Action Plan can be viewed as a prototype for designing similar strategies in other countries, including Russia. Meanwhile, a more detailed analysis of barriers to the circular economy at the level of individual countries and regions is needed.

scholarly journals Economic burden of work injuries and diseases: a framework and application in five European Union countries

2021 ◽  
Vol 21 (1) ◽  
Author(s):  
Emile Tompa ◽  
Amirabbas Mofidi ◽  
Swenneke van den Heuvel ◽  
Thijmen van Bree ◽  
Frithjof Michaelsen ◽  
...  
Keyword(s):  
European Union ◽  
The Netherlands ◽  
Economic Burden ◽  
National Level ◽  
Health And Safety ◽  
Indirect Costs ◽  
The European Union ◽  
Work Injuries ◽  
European Union Countries ◽  
Related Quality

Abstract Background Estimates of the economic burden of work injuries and diseases can help policymakers prioritize occupational health and safety policies and interventions in order to best allocate scarce resources. Several attempts have been made to estimate these economic burdens at the national level, but most have not included a comprehensive list of cost components, and none have attempted to implement a standard approach across several countries. The aim of our study is to develop a framework for estimating the economic burden of work injuries and diseases and implement it for selected European Union countries. Methods We develop an incidence cost framework using a bottom-up approach to estimate the societal burden of work injuries and diseases and implement it for five European Union countries. Three broad categories of costs are considered—direct healthcare, indirect productivity and intangible health-related quality of life costs. We begin with data on newly diagnosed work injuries and diseases from calendar year 2015. We consider lifetime costs for cases across all categories and incurred by all stakeholders. Sensitivity analysis is undertaken for key parameters. Results Indirect costs are the largest part of the economic burden, then direct costs and intangible costs. As a percentage of GDP, the highest overall costs are for Poland (10.4%), then Italy (6.7%), The Netherlands (3.6%), Germany (3.3%) and Finland (2.7%). The Netherlands has the highest per case costs (€75,342), then Italy (€58,411), Germany (€44,919), Finland (€43,069) and Poland (€38,918). Costs per working-age population are highest for Italy (€4956), then The Netherlands (€2930), Poland (€2793), Germany (€2527) and Finland (€2331). Conclusions Our framework serves as a template for estimating the economic burden of work injuries and diseases across countries in the European Union and elsewhere. Results can assist policymakers with identifying health and safety priority areas based on the magnitude of components, particularly when stratified by key characteristics such as industry, injury/disease, age and sex. Case costing can serve as an input into the economic evaluation of prevention initiatives. Comparisons across countries provide insights into the relevant performance of health and safety systems.

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