Cabinet News & Views

In This Issue ...

Welcome to this week's edition of Cabinet News and Views covering topics ranging from regulatory insights on bank failures and the benefits of having adequate capital to remain resilient to market shocks, to calls for reform in agricultural subsidies, and advancements in sustainable investments and ESG initiatives.

My colleague Peter Malyshev, joined by Maurine Bartlett and Nikita Cotton, explore the recent clarifications made on September 19, 2023, regarding the jurisdictional boundaries between the Commodity Futures Trading Commission and Securities and Exchange Commission in the regulation of swaps and security-based swaps. They dissect the impact of these regulatory delineations on the financial industry.

I summarize the recent remarks by Michael Barr, the Federal Reserve Board's Vice Chair for Supervision, regarding his view on the costs and benefits of the Basel III Endgame Proposal.

Alix Prentice offers insights into the recent publications by the Basel Committee on Banking Supervision and the Financial Stability Board concerning lessons learned from bank failures in 2023. Alix’s analysis sheds light on the potential implications of these reports on regulatory frameworks and the banking industry.

Sukhvir Basran, joined by Timbre Shriver, detail the proactive steps taken by the Farm Animal Investment Risk & Return Initiative in calling upon G20 Finance Ministers to reform agricultural subsidies regimes. In addition, Sukhvir and Ludovica Veltri provide an in-depth examination of the sustainable finance landscape with the launch of new ESG tools and initiatives by Euronext.

We’re always here for comments and questions. Just drop me a note here.

Daniel Meade
Partner and Editor, Cabinet News and Views

Jurisdictional Boundaries Between CFTC Swaps and SEC Security-Based Swaps Clarified

By Peter Y. Malyshev

Partner | Financial Regulation

By Maurine R. Bartlett

Senior Counsel | Capital Markets

By Nikita B. Cotton

Associate | Financial Regulation

On September 19, 2023, the jurisdictional boundaries between the regulation of swaps by the Commodity Futures Trading Commission and the regulation of security-based swaps by the Securities and Exchange Commission were clarified for the first time in a decision by the United States District Court for the Southern District of New York.

By Daniel Meade

Partner | Financial Regulation

Earlier this week, Michael Barr, the Federal Reserve Board’s Vice Chair for Supervision, delivered remarks to the American Bankers Association Annual Convention entitled Capital Supports Lending regarding the Basel III Endgame Proposal issued jointly by the FRB, Office of the Comptroller of the Currency, and his views on why the benefits of the proposal outweigh the costs.

By Alix Prentice

Partner | Financial Regulation

The Financial Stability Board has published its report on 2023 Bank Failures: Preliminary lessons learnt for resolution which follows on from the report from the Basel Committee on Banking Supervision on the 2023 banking turmoil. The reports differ in subject matter, with the FSB examining preliminary lessons learnt for the key attributes framework for resolving global systemically-important banks and other systemically important banks, and the BCBS looking at prudential regulation and supervision.

By Sukhvir Basran

Partner | Financial Services

By Timbre Shriver

Associate | Global Litigation

Ahead of September 2023’s G20 summit in Delhi, the Farm Animal Investment Risk & Return Initiative called on G20 Finance Ministers to reform agricultural subsidies to enable countries to meet their net zero greenhouse gas emissions commitments by 2050 along with their commitments to global biodiversity and nature goals.

By Sukhvir Basran

Partner | Financial Services

By Ludovica Veltri

Associate | Capital Markets

In September 2023, pan-European stock exchange and market infrastructure provider Euronext announced the imminent launch of a range of ESG tools and initiatives focused on sustainable finance, including its intention to publish the non-financial data of issuers on its website. It is intended that the tools and initiatives will support and implement Euronext’s “Fit for 1.5°” commitment, under which it will develop products and services to assist companies and organizations to mitigate temperature increases. The new initiatives will also support the “Growth for Impact 2024” strategy, i.e., the ambition to build the leading market infrastructure in Europe.