risks and challenges

Global markets watchdog proposes closer scrutiny of stock exchanges

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Global markets watchdog proposes closer scrutiny of stock exchanges

– Global securities watchdog IOSCO proposed detailed guidance on how regulators should supervise stock exchanges more closely to negate risks from changes in business practices.
– Exchanges have increasingly become publicly listed companies over the past two decades while remaining self-regulatory in some cases.
– Bourses have expanded geographically and diversified into technology and data services, forming partnerships with companies like Google Cloud and Microsoft.
– Brexit has contributed to increased cross-border operation of exchanges and other types of trading venues in Europe.
– The market evolutions have influenced the way exchanges and exchange groups are organized, potentially creating new conflicts of interest and operational challenges.
– The report proposes six “good practices” for regulators to assess how exchanges are structured to ensure independence in discharging regulatory obligations.

UBS, ’s rescue of Credit Suisse creates new risks for Switzerland, OECD says

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UBS, ’s rescue of Credit Suisse creates new risks for Switzerland, OECD says

The Organisation for Economic Cooperation and Development (OECD) has stated that UBS’s rescue takeover of Credit Suisse has introduced new risks and challenges for the Swiss economy, despite stabilizing financial stability. The merger, which was the largest bank merger since the global financial crisis, has significantly increased UBS’s size, making it a more dominant force in the Swiss banking sector. The OECD has raised concerns about UBS’s domestic dominance and the potential need for stronger financial regulation. The Financial Stability Board has also highlighted the risks posed by UBS’s failure to Switzerland and has called for stronger bank controls. The Swiss government is considering proposals to enhance regulations for big banks. The OECD report also mentions that the merger could lead to significant job losses but believes the Swiss labor market can absorb these losses. Additionally, the report notes that the Swiss housing market, while showing signs of cooling, still has vulnerabilities with properties being overvalued by up to 40%. The average price for an apartment in Switzerland has risen to over 1 million Swiss francs, with prices in Zurich reaching 1.8 million francs. The OECD forecasts that the Swiss economy will grow by 0.9% in 2024 and 1.4% in 2025, which is below the country’s long-term average growth rate.