Regulatory rules should be consistent with the relative riskiness and liquidity of different financial instruments. Deviating from this principle leads either to partial or complete elimination of financial activities or to regulatory arbitrage by the industry unacceptable to regulators.
See the summary of comments made by Georges Duponcheele of Risk Control who spoke on the impact of regulatory rules on issuance at SCI’s 8th Annual Capital Relief Trades Seminar held on 20th October 2022.
More information about the seminar including the agenda and the speakers can be found here.
