Panel Calls for More Viable Proposals Panel Calls for More Viable Proposals

From left: Deborah Toennies, Roger Pellegrini and David Blackwelder.

Capital Proposals Called Complex, Conservative Capital Proposals Called Complex, Conservative

"There are layers and layers of complexity and conservatism" in global capital proposals, David Blackwelder, managing director, Citgroup Global Markets, told attendees at the meeting.

Attorney: Time Is on Our Side Attorney: Time Is on Our Side

Jason Kravitt, a founding partner at Mayer Brown LLP, told attendees at at the SIMFA meeting that he believes, or at least hopes, that, "Time is on our side" when it comes to efforts to make complex proposed rulemaking in this area more viable for market participants.

Data Use in Proposal Found Impractical for Many Data Use in Proposal Found Impractical for Many

Among concerns is that some data proposed for use in setting capital requirements is impractical for any party but the originator to provide, said Roger Pellegrini, managing director, Royal Bank of Canada.

International Ratings Reliance Persists International Ratings Reliance Persists

Although other countries still use rating-based approaches, U.S. regulators have moved away from them. "You cannot have a hierarchy that a large part of the market cannot use," Deborah Toennies, managing director, JPMorgan Chase, said, commenting on this.

SIFMA Works to Bridge Global Differences SIFMA Works to Bridge Global Differences

Despite differences in countries' regulatory regimes, SIFMA has been presenting a united front with international securities group representatives in rulemaking discussions, SIFMA managing director Chris Killian said.

SIFMA: Higher Capital Requirements Could Result from Proposals
The Securities Industry and Financial Markets Association recently held a meeting on “The Future of Global Capital Requirements,” noting that one of the “main themes of industry response” to rulemaking in this area so far has been that generally “the proposals would result in much higher capital requirements” for most positions.

 

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