The payment card industry is under attack from the European Commission, writes Michael Imeson.

The EU’s Prospectus Directive is flailing because every state has interpreted it differently. And other directives close to their implementation deadlines, such as the Capital Requirements Directive and the Markets in Financial Instruments Directive (MiFID), may suffer the same fate, writes Michael Imeson.

US exchanges, brokers and dealers are struggling to meet the October deadline for compliance with Reg NMS – a US version of Europe’s MiFID – which will change the way equities are quoted and traded, writes Michael Imeson.

ABN AMRO’s experience of managing its own capital can be helpful in addressing clients needs, from asset liability management to meeting Basel II compliance deadlines, says Huibert Bouwmeester.

ABN AMRO’s asset liability management team clinched two important deals last year: the SMILE transaction, which was executed at tight pricing levels, and the Shield securitisation, which was designed to release risk-weighted capital under Basel I but is also Basel II efficient. Udo van der Linden outlines the transactions.

The structural flexibility of hybrid capital means that it should be an essential instrument in the acquisitions toolbox, and ideal in helping to provide the optimal solution for banks in an environment of cross-border consolidation, writes Nigel Howells.

Illiquid credit risk
For illiquid names, it becomes difficult – if not impossible – to provide delta hedges so that true single tranches can be manufactured by a trading desk.

Portfolio managers are driving innovations in credit derivative markets, and developments in CDSs and CDOs offer new avenues for banks to shed credit risk. By Rasheed Saleuddin.

How will covered bonds be treated after Basel II implementation? This will depend on whether banks adjust their holdings to the new risk-weighting regulations, write Mauricio Noe and Christoph Anhamm.

Regulators are not the only ones who are concerned about banks’ capitalisation; management and shareholders also want to ensure the level of capital is sufficient to meet shareholder goals. But the relationship between the groups results in the need for a fine balancing act, write Hassan Filali and Joe Rizzi.