Rpt-split On Finance Overshadows Europe-u.s. Trade Talks

Banks hope for less duplicated regulation. “In derivatives, without an agreement … banks will have to comply with both U.S. and EU rules, which is costly,” said Konstantinos Karountzos at the European Banking Federation. CACOPHONY U.S. Trade Representative Michael Froman, a former economic adviser to President Barack Obama, has expressed Washington’s reluctance. “There has been an explosion of regulatory activity,” Froman said in Brussels on Sept. 30, making clear Europe and the United States could not merge their financial regulation. “That work should continue in parallel,” he said. If financial regulation is left out, the deal will still have huge scope, setting standards in areas from chemicals to car safety, while opening up agricultural markets. But given finance’s central role in business, the pact would arguably be weaker and its longer-term scope limited. Both sides have struggled to regulate finance at home and this is discouraging Washington from seeking any transatlantic imitative. U.S. officials fear a deal with Europe could reopen their main reform since the financial crisis, the 848-page Dodd-Frank Act, introduced in 2010 to discourage risk-taking, and lead to the act being watered down. In Europe a cacophony of voices advocates differing approaches to regulation, despite Brussels’ efforts to impose a federal-style system.

Bats Expands Listings Business to Include Europe

plans to expand its European stock market, one of the regions biggest, by opening a listings business for exchange-traded funds from BlackRock Inc. Weve been looking at the ETF business in Europe for some time, Hemsley said in the interview. Given we are a pan-European business we are trying to create a pan-European product and attract flow and liquidity into the security from across Europe. We will be competing aggressively on listing fees, he said, adding that Bats will publish prices soon. Its attempt to grow that division by offering company listings failed in March 2012, when Lenexa, Kansas-based Bats couldnt get its own shares trading following the companys initial public offering. The exchange owners attempt to build out the European unit comes as it seeks to expand its U.S. market share by merging with Direct Edge Holdings LLC. Bats handled about 21 percent of all stock trading in Europe during the past five days, more than any other exchange operator except London Stock Exchange Group Plc, according to data compiled by Bats. Guy Simpkin, head of business development in Europe, will lead the exchanges efforts to win listings in the region. Bats plans to encourage ETF trading by rewarding traders who facilitate transactions by providing quotes, he said. European trading of ETFs lags behind the U.S., providing room for growth, Simpkin said. ETF transactions in Europe are valued at $2.6 billion a day on average, or 0.75 percent of assets within the securities, he said, citing data from ETFGI LLP. In the U.S., $54 billion of daily trading represents 3.9 percent of assets, the data show. To contact the reporter on this story: Nandini Sukumar in London at nsukumar@bloomberg.net To contact the editor responsible for this story: Nick Baker at nbaker7@bloomberg.net More News: