Friday 22nd August 2014
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South Africa’s central bank has disagreed with a ratings decision by Moody’s to downgrade Capitec Bank Limited (Capitec) by two notches, and place it on review for a further downgrade. The central bank says it respects the independent opinion of rating agencies but that it does not “agree with the rationale given in taking this step”. Two reasons are given for the rating action: a lower likelihood of sovereign systemic support based on decisions recently taken in relation to African Bank Limited (African Bank), and heightened concerns regarding the risk inherent in Capitec’s consumer lending focus. “With regard to the first point, it is important to reiterate that the approach taken by the SARB to any resolution to address systemic risk will always be based on the circumstances and merits of the particular prevailing situation. Decisions will also be informed, as was the case with African Bank, by principles contained in the Key Attributes for Effective Resolution Regimes proposed by the Financial Stability Board (FSB), which have the objective that a bank should be able to fail without affecting the system,” notes the central bank in an official statement. “This is in keeping with evolving international best practice. In the case of African Bank bond holders and wholesale depositors are taking a 10% haircut, which is generally regarded as being very positive given that the trades following the announcement of African Bank's results were taking place at around 40% of par. Therefore in fact substantial support was provided, not reduced. Moreover, all retail depositors were kept whole and are able to access their accounts fully,” it adds - According to the Hong Kong Monetary Authority (HKMA) credit card receivables increased by 2.1% in the second quarter to HKD112, after a reduction of 6.7% in the previous quarter. The total number of credit card accounts edged up by 0.7% to around 16.8m.The rollover amount, which reflects the amount of borrowing by customers using their credit cards, increased by 2.9% during the quarter to HKD19.2bn. The rollover ratio also rose marginally from 17.0% to 17.1% in the same period. The charge-off amount increased to HKD569mduring the quarter from HKD528m in the previous quarter. Correspondingly, the quarterly charge-off ratio rose to 0.51% from 0.46% in the previous quarter. The amount of rescheduled receivables transferred outside the surveyed institutions’ credit card portfolios reduced to HKD94m from HK$109m in the previous quarter. The delinquent amount increased to HKD249m at end-June from HKD239m at end-March. However, the delinquency ratio remained the same at 0.22% because of an increase in total card receivables. The combined delinquent and rescheduled ratio (after taking into account the transfer of rescheduled receivables mentioned above) edged up to 0.29% from 0.28% during the same period - Harkand has been awarded a contract to support Apache with inspection, repair and maintenance work (IRM) as well as light construction (LC) across their assets in the North Sea, following completion of a competitive tender exercise. The award includes the provision of vessels, ROV and diving services for a three-year period, plus two one-year options. The firm will also support offshore marine construction contractor EMAS AMC who have been awarded a separate contract for pipe lay and heavy construction as part of the same tender process. Harkand Europe managing director, David Kerr, said: “This contract is an important step in strengthening our close working relationship and growing our North Sea business with Apache.

FPL Latin America Electronic Trading Conference

FPL Latin America Electronic Trading Conference August 2nd | Tivoli Hotel, São Paulo www.fixprotocol.org/latam2012 http://www.ftseglobalmarkets.com/

Secure Your Place at the FPL Latin America Electronic Trading Conference, Created by the Latin American Trading Community

August 2nd | Tivoli Hotel, São Paulo
www.fixprotocol.org/latam2012

Building on the success of previous FPL events in Latin America, this year’s conference is set to bring together more than 350 senior representatives from across the region’s buy and sell-side, regulator, trading venue and vendor communities. Join FPL in Sao Paulo and benefit from an event that will offer:

• Separate business, strategic and technical streams, exploring the critical issues, challenges and opportunities impacting firms trading in the region in 2012 and beyond
• An agenda created by senior representatives from the Latin American trading community to address the real needs of the Latin American trading community
• The opportunity to hear the thoughts and impartial perspectives of more than 30 leading experts on the issues that matter to your firm
• Invaluable learning opportunities for representatives from across the region’s trading community
• The opportunity to meet with key decision makers through the many networking opportunities available throughout the day and at the evening cocktail reception

Topics for discussion will include:
• The future of electronic trading internationally and the opportunities and challenges that emerging trends will present to firms in Latin America
• As Dodd Frank reforms and the Volcker rule take shape in the US, what is the likely impact for OTC derivatives trading in Latin America?
• The Brazilian post-trade environment and the potential benefits that increased use of FIX for post-trade processing could present
• Trading across multiple venues in Latin America
• How firms could more effectively measure and control the true costs of trading
• Accessing Liquidity and gaining increased transparency: How can firms understand if they really did achieve best execution?
• Trade information: What data is available to firms trading in Latin America and how are firms using it?
• Trading locally verses internationally: Risk management and regulatory issues to consider
• Meeting the challenges of latency measurement
• How the latest developments from FPL could help support your firm’s emerging business needs
For further agenda details please visit: www.fixprotocol.org/latam2012/program

Register Today
All FPL member firms receive a FREE allocation of passes to attend this event and FREE attendance is available for all representatives from the buy-side and regulatory communities.

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