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In the last decade, financial regulations have focused on issues posed by systemic risk. The derivatives market has been the subject of structural reforms which have involved both the post-trade—Regulation (EU) No. 648/2012 ('EMIR')—and the trading phase—Directive 2014/65/EU ('MiFID II') and Regulation (EU) No. 600/2014 ('MiFIR'). In particular, the post-crisis regulation is characterized by the increasing role of the EU authorities both as a supervisor and as a regulator. The paper focuses on the role of ESMA in light of its new intervention powers. This paper analyses the regulations on over-the-counter derivatives introduced in Europe, with the goal of underlining the costs and benefits of this approach. To fully achieve its objective, the paper proposes, in the first section, a logical path that starts from an overview of the regulatory response to the crisis; then, in the second section, it focuses on ESMA's growing role in light of the recent reforms. The third section points out the strengths and weaknesses of the law-making process with a particular reference to a highly technical topic. Finally, the analysis concludes by speculating on the potential 'Brexit' impact on the ESMA's reform proposal, due to the role played by financial institutions and the activism of interested Member States. [ABSTRACT FROM AUTHOR]

This paper aims to describe the design of an effective recovery and resolution regime for central counterparties (CCPs), which has become increasingly imperative as a result of the positive performance of CCPs to contain contagion during the financial crisis that erupted in 2008, which led authorities to foster the use of CCPs to contain risk in financial markets. It is more than crucial to ensure that CCPs provide an adequate protection to their customers, for their benefit and the benefit of the market as a whole. In line with this, regimes for recovery and resolution of CCPs are currently in the process of being implemented across the world. While the events that would lead to the implementation of a CCP’s recovery and resolution regime are extremely unlikely, far worse than the ones that led to the eruption of the financial crisis in 2008, the right tools should, however, be ready for CCPs and authorities to ensure that these events can be dealt with smoothly and that financial markets are resilient to the most extreme events. [ABSTRACT FROM AUTHOR]

This paper investigates the (a)symmetry between stock market returns in Central and Eastern European (CEE) countries (Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, and Poland) on the one hand, and in the eurozone, Russia, and the United States on the other. Correlation asymmetry is investigated by applying a dynamic version of the test developed by Hong et al. (2007). The results show that the correlation when returns fall simultaneously in two stock markets (lower-tail correlation) normally exceeds the correlation when returns increase simultaneously (upper-tail correlation). The CEE stock markets that are the most correlated (as measured by Pearson's correlation) with the stock markets of the eurozone, Russia, and the United States exhibit a higher degree of symmetry between upper- and lower-tail correlation than do CEE markets that are less strongly correlated with these other markets. The dynamic version of Hong et al.'s test revealed that there were more periods of asymmetric correlation for the stock markets of the Baltic region than for other stock markets in CEE countries. [ABSTRACT FROM AUTHOR]

In this article, the concept of a tax on financial transactions in Europe is discussed. In the wake of the financial crisis of 2007, the European Union (EU) as well as single Member States are considering imposing a tax on financial transactions to mitigate short-term speculative trading and to generate substantial tax revenue to refinance the costs incurred during the crisis. The implementation of a tax on financial transactions would, from an economic perspective, have a range of consequences for the participants in the global financial markets, which must be considered. The authors analyse the potential economic consequences of a financial transaction tax (FTT) and derive solutions to mitigate negative effects. This article also intends to derive suggestions concerning the structure of an FTT. Therefore, the fundamental structures of different FTT regimes in selected states are presented. In this regard, the authors chose to illustrate the risks as well as the rewards by discussing the experiences of the FTT regimes in Sweden and in the United Kingdom in depth. [ABSTRACT FROM AUTHOR]

The article offers a research on the legal systems that deal with the lack of stability and integrity of financial institutions that are the same with the private law. It states that the concerns of the research are the experiences of European legal systems that faced incidents of unlawful attacks of organized or individual acts against the integrity of financial markets. It adds that the private law remedies are effective against the unlawful practices that affect financial markets.

Purpose - The purpose of this paper is to summarize the Group of Thirty's recommendations and explain how they relate to other concurrent financial market regulatory initiatives in the USA. UK, and Europe. Design/methodology/approach - The paper summarizes the report's four core recommendations, describes how they relate to recent reports by the US Treasury Department, the US Chamber of Commerce, and Committee on Capital Markets Regulation, and discusses how they may signal the direction of forthcoming domestic and coordinated international regulation. Findings - Momentum has been building for consolidation, increased oversight, and international coordination of the legal and regulatory framework that governs the financial industry. The report has an unabashedly pro-regulatory agenda. Originality/value - The paper provides helpful reference on the current direction of international financial institution regulation. [ABSTRACT FROM AUTHOR]

This paper ventures an institutional explanation for distinct patterns of political contestation over the rise of activist investors such as private equity and hedge funds in Europe and North America. Taking issue with the dichotomous nature of the literature on varieties of capitalism (VoC) and the homogenizing assumptions of the literature on financialization, we argue that the specific patterns of politicization in the US, Germany and the Netherlands over the rise of activist investors result from the different institutional structurings of these countries' political economies. Although our observations fit the current (re)discovery of agency in the VoC debate, we argue that they point in the direction of a less voluntaristic view of agency than seems fashionable today. [ABSTRACT FROM AUTHOR]

Paradoxically, though the Treaty on European Union underlines the power of EC central bankers, they have been neglected in the literature on European integration. Central bank independence provides the key connection between changes in global financial markets and the new Treaty provisions on economic and monetary union (EMU). In recent years EC central bankers have been subjected to ever more volatile and competitive markets and new political pressures related to EMU. Central bank independence has offered a means of reconciling these twin changes. This article seeks to explain why central bank independence has strengthened its grip in Europe and the nature of the role of central bankers in European integration. The adequacy of existing theories of central bank behaviour is examined - public interest, personality, public choice and bargaining theories. Emphasis is given to explanations that focus on external factors: the structural power of the 'anchor' currency in the exchange rate mechanism (ERM); deep-seated change in the nature of capitalism; the role of economic crisis; the policy style of the European Community (EC); and the unique relationship of central bankers to the state and consequent capacity to pursue their corporate interests. [ABSTRACT FROM AUTHOR]