Graham Bishop

I have decided to cease posting on X from now on. 9 Jan 2025

As 2024 draws to a close, I have recorded a video with the #FederalTrust's Donnelly on my views about the prospects of a #Brexit reset for the #CityofLondon.. Sadly hopes of a major improvement are doomed as the plans will inevitably founder on the rock of derivative clearing.

but focusses instead on the potential accession of many other small states…Perhaps the fevered UK debate about “reset” has not made it onto the EU’s radar screen.

Sadly, in my latest video, I felt the need to explain why the reset is doomed – see below. In any case, the leaked draft of the Conclusions of tomorrow’s Heads of Government Summit (#EUCO) does not even mention the UK

According to the #CityofLondon, the #UK remains the world’s top exporter of financial services, but questions remain about how much the #City might benefit from the #UKGovernment’s much-touted reset of relations with the #EU.

profitability is holding at high levels and liquidity (on the traditional metrics!) is high. The #EU’s insurers were also given good marks in #EIOPA’s stress test but the #ECB and #EIOPA jointly suggested that insurance coverage of natural catastrophe’s needs to be improved.

The resilience of the financial sector attracts much attention but the risk to the #sub-sea cables that carry its data is only just surfacing. Both #EBA and #SSM pronounced on the #EU’s banking sector:

There are clear risks to financial stability from its leverage – echoed in the #ESRB’s recommendations following a review of its first decade. #Debtsustainability is also emerging as a major issue as #ECON’s study is sharply critical of the new rules.

Highlights of my week: The Non-Bank Financial Institution (#NBFI) sector seems to be emerging from the shadows as the #FSB reported that, globally, it is now the same size as the traditional banking sector and growing much more rapidly.

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They conclude that these possibilities are limited, given the commitment of the EU to retaining the greatest possible financial control within the euro area.

A Brexit Reset for the City of London? youtu.be/H0475ECoPN8?si=1EWk… via @YouTube Graham Bishop and Brendan Donnelly discuss the possibilities for a reset of relations in the financial sector between the UK and EU.

and the #CityofLondon pointed out that the #UK raised as much new equity as #Paris and #Frankfurt together – but still ranked fifth in the world!

The #ESAs examined the risks of the transition to #Fitfor55 climate standards and concluded that the transition alone would not pose risks to financial stability. Chancellor #Reeves delivered her #MansionHouse speech

#ICMA concluded that one-size-fits-all regulation is not appropriate for the #NBFI sector. #COP29 ends tomorrow and the institutional investors’ group – #IIGCC- summarised the first week for investors. #IFRS provided a guide for companies to identify risks (and opportunities).

capital requirement than #US banks. #Council finally agreed #EMIR3 and #ESMA promptly began asking about the Active Account Requirement (#AAR). #AFME published the next edition of its #CMU Performance Indicators – with bleak comparisons for the EU.

fully the agreed reforms, especially on links to #NBFIs. #CEPS suggested that the #EU should not compare itself precisely to #US financial markets, given its very different characteristics and the #ECB seems split about publishing its report showing big #EU banks would have lower

But that start will have as its backdrop the #ECB’s chilling assessment about the potential revival of the euro area debt crisis contained in its new Financial Stability Review. The #G20 meeting triggered calls from both #FSB and the Basel Committee (#BCBS) to implement fully

Want to read the stories underlying these brief comments? Subscribe at grahambishop.com Highlights of my week: At the very last moment, #EuropeanParliament has agreed the new #Commissioners so “#UvL2” should be able to take office on 1 December.