BRUSSELS – The European Commission has circulated a paper that supports calls from the European Council to impose limits on the proportion of equities that can be traded off-exchange. These proposals would cause a suspension of trading on so-called unlit venues or dark pools if their market share rose above two set caps. If approved, the proposals would enter force as part of the Markets in Financial Instruments Regulation (MiFIR), which is still being negotiated in trialogue between the Commission, Council and European Parliament. All three now appear willing to accept the caps proposal.

BEIJING – The China Banking Regulatory Commission (CBRC) and China Securities Regulatory Commission (CSRC) published a joint draft of “Guidelines on the Practice of Replenishing Capital through Corporate Bonds”, which took effect in November 2013. These guidelines are intended to provide “an institutional norm for commercial banks to broaden their capital replenishment channels,” as well as encouraging the development of the local bond market.

LONDON – The Bank of England is intensifying scrutiny on the UK housing market, amid rising concerns of a bubble that could have implications for financial stability. A report produced by the National Housing Federation and Oxford Analytics forecast a 35% rise in house prices in England by 2020, and warned that the market in growth areas such as London is overheating.

Standard setters admit they are still struggling to account for complex financial instruments By Charles Piggott

Industry welcomes measures to accommodate long-term guarantees, but concerns remain on international equivalence By Philip Alexander

A framework of regulation for shadow banking is taking shape. But there are worries that some aspects are not strict enough

By Melvyn Westlake

Swap execution facilities launch amid market participant concerns over clearing and cross-border implications By Philip Alexander

Can the G20 and Financial Stability Board remain at the top of the pecking order in the financial regulation debate? By Charles Piggott

ECB board member says committed liquidity facilities could prevent central banks becoming lender of first resort By Charles Piggott, additional reporting by Philip Alexander

A selection of news items generated by the American regulatory reform agenda Congress passes bill to end swaps quarantine