Vanessa Le Leslé

Head of Regulatory Affairs, Asia-Pacific , J.P. Morgan Autres cours :

Regulation and Financial Markets

Les objectifs du cours

Banks, and the financial sector more broadly, operate in a highly regulated environment. Financial regulations have evolved over time, in response to key events, such as the 2008 Global Financial Crisis, and to address emerging risks (e.g., data, cyber security, FinTech, etc). Regulations have broadened to encompass all parts of the financial system: banks and non-banks—insurers, market infrastructures, credit rating agencies, hedge funds, etc. Global policymakers (including BCBS, FSB, IOSCO) have developed international standards to support the G20 mandate—ensuring the stability and resiliency of the global financial system. At the local and regional level (in the EU for instance), prudential and market regulators are tasked with transposing these global standards in their own framework, which may cause some variations in the way regulations are implemented across jurisdictions.

This lecture aims at giving the students an overview of recent and future regulatory prudential and market reforms, at the global level and across regions. Lectures will compare and contrast global, US and EU rules, and try to balance academic content while relying on real-life examples.

Plan du cours

1) An introduction to financial regulations

  • Why should you care about regulations?
  • Overview of key regulatory developments over the last 10 years
  • What are the main regulations you should know about and how do they work?
  • How are regulations drafted globally, in Europe and in the US?
  • Regulation vs. Supervision vs. Resolution: understanding key concepts

2) Prudential regulations in Europe and the US

  • Overview of the Basel framework and its evolution
  • Capital requirements (Global / US / EU)
  • Liquidity requirements (Global / US / EU)

3) Regulations to address “too-big-to-fail” banks (G-SIBs) in Europe and the US

  • Preventing failure of systemic banks (College of Supervisors, Crisis Management Group, Recovery and Resolution Plans, Stress testing, etc)
  • Presentation of the regulatory toolkit: including G- SIB, TLAC/MREL, separation of activities (e.g. Volcker)

4) Overview of Market regulations

  • Equity and bond market structure & regulatory framework
  • Regulating derivatives markets (Trade Repository, Clearing, CCP, Margins, Trading Mandate, etc…) 
  • Understanding CCP: structure, use, regulatory framework and challenges, etc.

5) Market regulations in Europe and the US

  • Key US regulations (DFA, Volcker, etc.)
  • EU regulations (MiFID, EMIR, etc.)
  • Select APAC regulations
  • Cross-border issues

6) What’s next for regulatory reforms?

  • Work program of key global policymakers (BCBS, FSB, IOSCO, etc)
  • Regional & local considerations (US, EU, key Asian countries)
  • Emerging issues (cybersecurity, FinTech, data use and privacy, etc.)

7) Some considerations from a global bank on operating in a fragmented regulatory environment

  • Regulatory fragmentation (across jurisdictions / between prudential & market regulators, etc)
  • Extra-territoriality impact
  • Cross-border challenges