PCBS has published corrected evidence in respect of hearings held on 17 December 2012 attended by Carol Sergeant (formerly of FSA and Lloyds Banking Group) and, separately, Christine Downton (Pareto Partners) and on 4 December 2012 attended by given by Andrea Leadsom MP and execs from VocaLink.

Among other matters, the Government will take steps to reduce the regulatory burden that might constrain infrastructure investment by: introducing legislation in the Enterprise and Regulatory Reform Bill and amending the CMA framework to increase the incentives for regulators to make better use of their concurrent competition powers, to seek pro-competition solutions to market failures.

Text of the above, given at BBA, follows. Topics include: factors driving excessive risk-taking in the financial system leading up the crisis and key aspects of the reform of banking. Specific topics discussed include resolution arrangements – he suggests the prospect of taking losses via resolution gives debt holders a strong incentive to monitor banks’ risk taking – he suggests that management should be mainly paid in subordinated debt; ringfencing; .changes in prudential regulation; microprudential supervision and macroprudential policy).

The European Commission has opened formal proceedings to investigate whether Gazprom, the Russian producer and supplier of natural gas, might be hindering competition in Central and Eastern European gas markets, in breach of EU antitrust rules.

The EC has published the above, together with an accompanying working paper and an introductory speech by Joaquín Almunia, who notes work on competition in the financial sector as well as antitrust cases in the sector.

Text of the above, given at the Global Competition Review conference, follows. He discusses competition in the banking sector, including consideration of how a well-functioning retail banking market would work; FCA’s likely approach; new technology in the banking sector and OFT’s future plans in this area. It is noted that a review of the personal current account market will be launched “shortly” and will include a roundtable to be held in October 2012 to gather views on the proposal from all relevant stakeholders. Clive Maxwell notes that OFT is likely to look at the banking market more broadly, focusing on areas such as SME banking. He concludes: “if we do not see real change from banks, then a more radical approach needs to be considered. We cannot just continue working with business on incremental change if this does not deliver sufficient results. … So if ‘plan A’ cannot succeed in making the OFT’s vision of the banking market a reality, the obvious question is whether the concentrated market structure of UK banking is the problem. And one way to consider this question would be ‘plan B’ - a reference to the Competition Commission”.

The National Stock Exchange has been fined Rs. 55.50 Crore by the Competition Commission of India for abusing its dominant market position. This is the result of a year-long investigation started when the MCX-SX filed a complaint back in 2009.

OFT has published the text of this speech, given at a MLex/Lloyds Banking Group seminar, together with accompanying slides. He discusses the current state of the banking sector and past interventions by OFT/CC; the effect of the new UK regulatory regime on the sector and the criteria under which market investigation references might be made. He concludes: “a step change is needed in the banking sector. Going forward we need to see evidence which demonstrates that the market dynamics of entry and switching are sufficient to drive stronger customer-focused competition. Without this the obvious question is whether the concentrated market structure of UK banking is the problem. And one way to consider this question is a reference to the CC”.