The introduction of the output floor under Basel III is diminishing the popularity of internal ratings-based models among banks in the EU. While some bankers lament the shift toward standardized metrics for capital requirements, others acknowledge the need for change.

The UK Financial Conduct Authority is seeking greater authority to manage the rapid growth of artificial intelligence in financial services, Executive Director Sheldon Mills says. Mills says regulators are in an "arms race" with AI, and that the FCA needs to embrace the technology to monitor risks.

Dealers are struggling to manage the risks associated with exotic yen options structures, particularly reverse knockout calls, that hedge funds are using to speculate on Bank of Japan intervention. These trades create significant volatility exposures for dealers, especially when intervention fears peak and hedging becomes most expensive.

The China securities units of major Wall Street banks reported record net profits in 2025, driven largely by trading and brokerage income. The profits come as global investors show renewed interest in China, leading to a surge in cross-border business. The performance of Western banks contrasts with that of their European counterparts, whose China securities units have underperformed.

The European Commission has revised sustainability reporting standards to exempt asset managers from reporting ESG data on all assets if they are subject to fiduciary duty and manage portfolios under client mandates. This change aims to ease the regulatory burden on asset managers.

The Bank of England is moving forward with plans to limit hedge fund leverage in UK government bond trading amid concerns about market volatility. The BoE is consulting on gilt repo resilience and expects to publish policy proposals early next year.

Join the IA and ISDA to discuss the evolving regulatory framework governing the management of liquidity and leverage by Non-Bank Financial Institutions (NBFIs) and how this is impacting strategic collateral management operations and optimization. The event will also consider how developments in technology can be used to drive efficiencies in collateral management. Click here to register.

This comprehensive 2-day Masterclass in Singapore and Hong Kong will equip participants with a deep practical knowledge of the key elements of ISDA's documentation, increase confidence in negotiating these documents, as well as provide insight into the latest developments in market documentation. Register for these courses in your region here.

ISDA has launched the ISDA-Actrix US Treasury Repo Market Clearing Indicators in collaboration with Actrix. The indicators illustrate central clearing adoption in the US Treasury repo market. Sponsored cleared repo volumes are used as a proxy to monitor client participation in central clearing, a key objective of the US Securities and Exchange Commission's (SEC) US Treasury clearing mandate. The report will be published on a monthly basis.