Week InReview |  A n episode of 'Brex & the City' that will make you say "Hmmm...." in ICYMI (no, it's not Obama's 'sentence-construction' slip-up)   Fitch rolls out U.S. RMBS deal agent reviews | Clearinghouses should coordinate drills, CFTC panel says Changes to prospectus oversight on the table in Europe Nobu & Fatty & Fruit are back... in Binge Reading Disorder

Friday, July 1, 2016
Let's recap
In case you missed it . . .

Prospectus oversight on the table in Europe

EU's financial authority seeks to harmonize
(Jun 30)  New guidance and legal clarifications may be needed to  better harmonize oversight of issuer prospectuses with regard to advertisements, risk factors and readability, according to the  European Securities and Markets Authority, to  better synch the disparate regulatory treatment of disclosure documents filed by companies going public in the European Union.  Disclosure requirements for the documents vary, as do approval times, in  more than two dozen countries across the continent. ESMA's findings are part of a larger project for the EU regulator addressing regulatory convergence among member states.
Deal agent reviews
Fitch rolls out RMBS initiative in U.S.
(Jun 27) Fitch Ratings is now including reviews of RMBS deal agents (DAs) as part of its U.S. RMBS Master Criteria. Fitch expects the participation of DAs in new RMBS to improve representation and warranty enforcement as well as heighten servicer accountability and effectiveness in mitigating losses on distressed loans. DA responsibilities may include the following:
  • servicer and vendor oversight
  • investor reporting and reconciliation
  • enforcement of transaction governing agreements
  • resolution of representation and warranty breaches
  • credit risk management
Fitch's DA reviews result in a qualitative assessment of 'acceptable' or 'unacceptable'. While DA assessments are not ratings, they will contribute to the analysis of new issue RMBS transactions.
Clearinghouses should better communicate, coordinate
Says CFTC market risk advisory committee
(Jun 27) The Commodity Futures Trading Commission's Market Risk Advisory Committee says clearinghouses need to better communicate, and coordinate to prepare for a possible member default. The panel recommended that d erivatives clearinghouses should
  • establish communications paths with their peers,
  • conduct joint drills mimicking a default,
  • standardize the process for auctioning portfolios that have been defaulted on, and
  • coordinate strategies for transferring positions from an insolvent futures broker to a solvent one.
Binge reading disorder
Hand-curated, chosen with love
Patriotic Playlist: 15 songs to make this Fourth of July one to remember
- AOL.

Google has a new tool that shows you how much it really knows about you

Nobu & Fatty & Fruit: The story of the U.K.'s most audacious insider trading case

Booze & Noble: Barnes & Noble's new comeback plan: alcohol-serving restaurants

'Elephant Chart': get ready to see this globalization chart over and over again: the non-winners in globalization are the western world's middle classes