ESMA Sparks Concern With Share Trading Brexit Plans

By Hayley McDowell March 20, 2019, The Trade Market participants across Europe will be forced to trade several major U.K. stocks on European venues if the U.K. leaves the E.U. without a deal later this month, sparking huge concern...

DSB Tackles ”Tricky” Fee Situation

By Louisa Chender March 20, 2019, Global Investor Group The Derivatives Service Bureau (DSB) is considering changes to its fee structure to tackle a tricky situation as it strives to find a fair pricing scheme for all users. The...

ASIFMA Calls for Workable Sec. Lending Regime in China

By Andrew Neil March 20, 2019, Global Investor Group Asia’s top financial trade group has called for a workable securities lending and borrowing regime in China. On March 20, the Asia Securities Industry & Financial Markets Association (Asifma) published...

FICC Market Standards Still Under Review

By Shanny BasarMarch 18, 2019, Markets Media The FICC Markets Standards Board is continuing to review structural and conduct risks in electronic trading, government bond auctions, the sharing of allocation information in primary bond markets and the management...

FINRA Set to Unveil Proposal on Corporate Bond Data Collection

By Philip Scipio March 19, 2019, International Financing Review The U.S. Financial Industry Regulatory Authority is prepared to file a rule proposal with the Securities and Exchange Commission to require the collection and dissemination of reference data for new...

Conflicting Data Shows SA-CCR Negatively Impacts Derivs

By James ThursfieldMarch 19, 2019, Global Investor Group Trade bodies warn that proposed rules for calculating the supplementary leverage ratio could have a significant negative impact on liquidity in the derivatives market, based on new data that conflicts with...

Compensation “a Bullet in the Head” of CCP Risk Management – EACH

By James ThursfieldMarch 19, 2019, Global Investor Group The European Association of Clearing Houses (EACH) has reiterated its lack of support for clearing member compensation stating that it would be a “bullet into the head of CCP’s risk management”....

Freddie Mac May Be Forced to Sell Off Agency MBS Through 2019, Wells Says

By Alexander SaeedyMarch 19, 2019, GlobalCapital Wells Fargo analysts forecasted on Tuesday that Freddie Mac will release some $20bn of agency MBS this year as the Federal Housing Finance Agency may ask the GSE to shrink its balance sheet...

Fed Faces Crucial Decision on Mix of Treasuries in Its Portfolio

By Nick TimiraosMarch 19, 2019, The Wall Street Journal Markets have cheered the Federal Reserve’s imminent announcement that it will stop shrinking its asset portfolio later this year, but determining that date is just one challenge facing central-bank...

Rate Hike Patience May Leave Fed in a Bind If Inflation Softens

By Jeanna SmialekMarch 19, 2019, Bloomberg Federal Reserve officials say they’re willing to tolerate an overshoot of their inflation goal. If the opposite happens, the plan is less clear. Core inflation, excluding energy and food prices, is currently just...

Trade Bodies Call for “MiFID II REFIT”

By Louisa Chender March 18, 2019, Global Investor Group Trade bodies have called for a “MiFID II REFIT” after complaints of outstanding problems have brought the effectiveness of the rules into question. In response to a consultation by the...

MiFID II Won’t Fix Bond Mispricing

By Thomas Helm March 13, 2019, Practice Insight from IFLR The systematic mispricing of public sector bonds is mainly the result of an “opaque” over-the-counter (OTC) market structure, and not necessarily evidence of widespread collusion, researchers and sell-side consultants...

MiFID II: U.K. Firms Start Receiving FCA Letters

By Thomas Helm March 14, 2019, Practice Insight from IFLR A number of market participants have already received letters from the U.K. regulator’s Markets Reporting Team for transaction reporting failures. Both sell-side and buy-side firms expect regulators to truly...

Volume Caps Under Scrutiny in MiFID II Review

By Shanny Basar March 15, 2019, Markets Media The mandated review of the operation of MiFID II should focus on the double volume caps on equity trading in dark pools according to a poll at the FIX Community EMEA...

German Law Yet to Determine Post-Brexit Trading Fate

By Louisa Chender March 18, 2019, Global Investor Group U.K. firms that did not take steps to guarantee post-Brexit access to Eurex last summer are still left in the dark as to whether they will be able to continue...

Brexit to Deliver Further Blow to MiFID Transparency Data

By Samuel Wilkes March 18, 2019, Risk Dealers and investors trying to gauge the depth of trading from already patchy European Union data are due to face another setback from Brexit, as off-venue trades across the new E.U.-U.K. border...

Brexit, Data Costs Dominate FIX Conference

By Shanny Basar March 14, 2019, Markets Media The U.K.’s departure from the European Union and the high cost of market data were the hot discussion topics at the FIX Trading Community conference. FIX Trading, which provides an open...

ELP SIs Gain Ground With Record Volumes in February

By Hayley McDowell March 13, 2019, The Trade Systematic internalisers (SIs) operated by market makers in Europe under MiFID II seem to be winning over market participants after reaching record market share in February, according to an analysis by...

MiFID II Data Reporting Falls Behind as Clocks Spring Forward

By Samuel Agini March 14, 2019, Financial News European regulators’ efforts to collect more data on stock trading in the region have hit a curious snag — the changing of the clocks. Under the European Union’s revised Markets in...

Conditional Orders and Periodic Auctions Come Out on Top Post-MiFID II

By Hayley McDowell March 12, 2019, The Trade The use of periodic auctions and conditional order types are helping senior buy-side traders navigate liquidity post-MiFID II more than any other technique or strategy, according to WBR Insights. A survey...

Activist Funds Benefit From MiFID II Research Cuts

By Becky Pritchard March 14, 2019, Financial News Dramatic cuts in spending on investment research by asset managers in Europe has been a boon to activist hedge funds, according to a panel of leading activists and advisers speaking at...

China Shadow Banking Cools for First Time in a Decade

By Don Weinland March 19, 2019, Financial Times As China’s $9.1tn shadow lending industry cools for the first time in a decade, private corporate defaults are on the rise. Shadow banking, an industry of loosely regulated, high-yield lending outside...

France Tells Banks to Set Aside More Capital

By David Keohane March 18, 2019, Financial Times France has told its banks to put aside more capital as it fears credit in the country might be growing too quickly and the financial system needs to hold more ammunition...

Once Bitten, Twice Shy: U.K. Traders Wary of Inflation Reform

By Helen Bartholomew March 18, 2019, Risk U.K. inflation traders have heard this story before. With reforms to the leading measure of inflation on the agenda for the second time in a decade, traders are cautiously pricing in only...

Fed Officials Wrestle With a ‘Dot Plot’ Dilemma

By Nick Timiraos March 18, 2019, The Wall Street Journal Federal Reserve officials aren’t quite sure what to do about their dots. Every quarter, the central bank produces a chart of 19 officials’ individual projections for interest rates, with...

Securities Lending Could Spur Loss-Leading Strategy Among Funds – Study

By Andrew Neil March 18, 2019, Global Investor Group Securities lending could play a significant role in influencing asset managers to pay investors to put money into their funds, new research predicts. A study Flowspring, a U.S. firm providing...

Regulatory Crackdown Unlikely in U.S. Leveraged Loan Market

By Kristen Haunss March 15, 2019, Reuters The U.S. leveraged loan market is unlikely to see a renewed regulatory crackdown despite mounting criticism of the asset class, as political gridlock in a divided Congress would hold up reform attempts....

Swaps Market Still Has Impediments to Participation, Experts Say

By Charles Tomlinson March 14, 2019, SmartBrief The original goals of the Dodd-Frank Act have largely been met, although the industry is still working to overcome some barriers to participation, said panelists at FIA Boca 2019 on Wednesday. The...

ECB Attacks E.U. Plans for Boosting Supervision of Clearing Houses

By Jim Brunsden and Claire Jones March 17, 2019, Financial Times European Central Bank officials have strongly criticized E.U. plans for boosting supervision of clearing houses, saying they leave it without crucial powers to fend off crises in the...

CCP Risk Panels Aren’t Listening, Banks Say

By Robert Mackenzie Smith March 15, 2019, Risk Two big banks have insisted that risk committees at clearing houses take greater account of their voices when green-lighting newer, riskier products for clearing. At banks, there has been quiet consternation...