Derivatives specialists in London were today digesting the news of a radically changed UK regulatory structure, due to be introduced by 2012.
The Financial Services Authority, not always loved or respected by market participants since its foundation in December 2001, will be abolished – but the reforms are likely to give derivatives firms at least two regulators to deal with, in its place.
Meanwhile, a commission of enquiry will examine whether banks need deeper structural reforms, such as break-ups or a split between commercial and investment banking.
“We’re now going to have to work within a new structure,” said Anthony Belchambers, chief executive of the Futures and Options Association. “The timing is not great – obviously the FSA along with the SEC is one of the more influential voices in the international arena. With all the regulatory upheaval in the EU and the US we do question whether now is the...