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Fresh Prospects for Asset Management but Distribution Reform Needed

Fresh prospects open for asset managers as Europe seeks to reduce its historic reliance on banking and promote capital markets. CEPS and ECMI launched their landmark report ‘...

Understanding Sovereign Bond Markets and the Eurozone Crisis

A recent ECMI-CEPS research seminar looked at sovereign bond markets after the PSI in the Greek rescue, the LTRO intervention by the ECB and the proposed ESM. This lunch-...

A NEW ECMI-CEPS TASK FORCE REPORT

Rethinking Asset Management: From Financial Stability to Investor Protection and Economic Growth

A new ECMI-CEPS Task Force Report examines the asset management industry and its links with financial stability, product integrity, investor protection and the real economy. A landmark study, the report evaluates the many legislative proposals on the table –including implementation of the AIFMD, MiFID II and PRIPs– as well as the discussions on product integrity in UCITS and ‘shadow banking’. Click here to download from the CEPS website.

 

Setting the Institutional and Regulatory Framework for Trading Platforms: Does the MiFID definition of OTF make sense?

As discussions around the revision of MiFID are heating up, this paper tries to set a new regulatory and institutional framework for multilateral and bilateral execution mechanisms of complex financial instruments, such as OTC derivatives and fixed income products. The author argues that the current MiFID framework is equipped to capture a great deal of multilateral derivatives and fixed income trading, but the Directive fails to provide a complete definition of bilateral execution mechanisms and has narrowed it to mainly own account trading (ex: SI). 

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The Euro Prisoner’s Dilemma

ECMI Commentary 32, February 2012: The last intergovernmental agreement among 25 countries and the ESM Treaty will set the ground for greater institutional coordination on fiscal policies among euro area member states. None of these decisions, however, will be able to pull the euro area out of this crisis. The eurozone is trapped in a classic prisoner’s dilemma. The break-up of the euro remains unlikely but the exit strategy will continue to be led by a sequence of rational (but sub-optimal) decisions, which will make the process long and painful.

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The Gloomy Scenario of Italy’s Default

ECMI Commentary 31, December 2011:  This Commentary explores what will happen if Italy is not able to implement structural reforms and if international institutions, such as the EFSF and the IMF, do not intervene with sufficient resources to prevent Europe’s second-largest economy from defaulting on its debt. It warns that the Italian economic system would certainly embark on a perverse path that would follow three phases: liquidity crisis and insolvency; deflationary pressures; and finally inflationary pressures and economic and political instability.

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