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Bailey McCann, Opalesque New York: "The biggest change we have seen is probably on the regulatory side of things," explained Andrew McGrath, Founder and CIO, Burren Capital Advisors, at the recent Opalesque Gibraltar Roundtable. Delegates each noted the impact the bevy of new financial regulations are having on Europe and European managers.
"The newly-created European regulator, ESMA, has
been charged with the implementation and the writing of all the technical details," adds Renaud Huck, Head of Buy-Side Relations, Deutsche Börse Group. "This is definitely a space to watch on both sides of the Atlantic, everybody is anxious about potential disagreements
(between the E.U. and U.S. regulators over the issue of recognition of each others’ derivatives and clearing house
regulations) because if this is the case, there will be a massive knock-on effect on the financial markets. I do believe
that once EMIR starts, the financial market – specifically its core function and the rules of engagement - will be
changed forever. "
One of the key issues at the center of this implementation is the OTC derivatives market. That market will see a significant change in structure and rules, and both the US and EU will have to agree on how to move forward. Investment banks will see the impact first, these banks are simultaneously impacted by Basel III and other regulations which could set up a compliance bottleneck.
"To help put it into context, in 2006 there were approximately 35 ...................... To view our full article Click here
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