CFTC drops proposal to extend trade reporting timeline for some swaps

By Karen Brettell September 17, 2020, Reuters The U.S. derivatives regulator on Thursday said it was backing away from a controversial proposal to delay the trade reporting of some swaps, after a number of market participants said that it...

Federal Reserve weighs bank dividends as it prepares second stress test

By Pete Schroeder September 17, 2020, Reuters The U.S. Federal Reserve said on Thursday it would decide by the end of September if it would continue capping bank dividend payments and laid out two hypothetical severe recessions it...

ECB relaxes bank leverage regulation in attempt to boost economy

By Martin Arnold September 17, 2020, Financial Times The European Central Bank has relaxed regulations on eurozone banks, freeing up as much as €73bn of capital in an attempt to boost lending and prevent the economic crisis triggered by...

Stricter EU short selling reporting rules to stay in place until December

By Hayley McDowell September 17, 2020, The Trade Hedge funds will have to continue adhering to stricter short selling reporting rules as the EU markets watchdog has renewed requirements enforced at the height of the coronavirus pandemic until December.   The renewal means that funds with net short...

Market readiness questioned as no-deal Brexit looms­­­

By Alice Tchernookova September 17, 2020, Practice Insight from IFLR With just over three months to go until the end of the transition period and little progress made on a future trade agreement, the UK and EU are...

A New Pact Will Help Derivatives Markets

By Valdis Dombrovskis and Heath Tarbert September 16, 2020, The Wall Street Journal The world’s derivatives markets saw more than $640 trillion in trading activity in the first six months of 2019 alone. At the heart of these global...

The EU Needs Banks to Merge Across Borders

By Ferdinando Giugliano September 16, 2020, Bloomberg The euro region has taken several steps to centralize banking regulation and supervision, but there is little sign that lenders are interested in seeking to merge beyond national borders. Two recent deals...

Buy-side still overwhelmingly unprepared for uncleared margin rules from 2021

By Joe Parsons September 16, 2020, The Trade A recent survey of asset managers and asset allocators has found the vast majority are still hugely unprepared for the uncleared margin rules (UMR) when it comes into force for them...

No need for tighter EU rules on where asset managers are located, say funds

By Huw Jones and Carolyn Cohn September 15, 2020, Reuters Senior fund managers have pushed back against a call from the European Union securities watchdog for tighter rules on where industry officials are located, saying the coronavirus pandemic has...

Breaking “chicken-and-egg” cycle key to Libor transition – speaker

By Wendy Lisney September 16, 2020, Global Investor Group Breaking up “chicken-and-egg” problems is key to kick-starting the Libor transition, a panelist at the International Swaps and Derivatives Association’s (ISDA) forum on Asia Pacific benchmark strategies has said. “When...

Powell says Fed working on changes to Main Street program

By Catarina Saraiva September 16, 2020, Bloomberg Federal Reserve Chair Jerome Powell said the Fed will be making some changes to its Main Street Lending Program, which is aimed at helping small- to mid-sized companies and nonprofits that have struggled during...

Lawmakers show increased interest in the Municipal Liquidity Facility’s function

By Sarah Wynn September 11, 2020, The Bond Buyer Congressional lawmakers are showing an increased interest in what they think is the poor functioning of the Federal Reserve’s Municipal Liquidity Facility, and some lawmakers believe changes should be made...

Asset managers overhaul money market funds after March rout

By Joe Rennison and Colby SmithSeptember 15, 2020, Financial TimesSome of the world’s largest asset managers are shutting down US investment vehicles that have suffered rapid outflows in times of stress, threatening an important source of short-term funding for...

EU CCPs expand overseas footprint

By Louie WoodallSeptember 15, 2020, RiskCentral counterparties (CCPs) in the European Union have steadily increased the number of clearing members from outside their home jurisdictions and the EU itself, data published by the European Central Bank (ECB) shows.As of...

Banks’ cross-border exposures to shadow banks surged in Q1

By Louie WoodallSeptember 14, 2020, RiskLiabilities owed to overseas non-bank financial institutions (NBFIs) by lenders leapt $779 billion over the first three months of 2020 – three times the average first quarter amount since 2015 – as the coronavirus crisis...

CSDR settlement discipline: could this be the end?

By Alice TchernookovaSeptember 10, 2020, Practice Insight from IFLRA further one-year delay to February 2022 of the Central Securities Depositories Regulation’s (CSDR) settlement discipline regime in the EU has left market participants wondering what will become of it.The move,...

Investment Firms Prudential Regime could harm UK firms

By Alice TchernookovaSeptember 10, 2020, Practice Insight from IFLRParts of the future Investment Firms Prudential Regime (IFPR) are set to have a negative impact on UK firms if applied in their proposed form, industry members have told Practice Insight.Due...

How has the coronavirus shifted the balance of the European ETF market?

By Cherry ReynardSeptember 14, 2020, Portfolio AdviserAt the start of this year, Morningstar predicted that the European ETF market could hit €1trn by the end of 2020 and €2trn by 2024. It based this view on the four-fold expansion...

MEPs call for ESNs as part of new CMU drive

By Tyler DaviesSeptember 11, 2020, GlobalCapitalMEPs have asked the European Commission to come up with a legislative proposal for a new class of bank debt, known as ‘European Secured Notes’, as they push the executive to fast track its...

Europe’s left out 1% can get equal Argentina debt terms: official source

By Marc Jones and Eliana RaszewskiSeptember 11, 2020, ReutersArgentina will give the mainly European-based 1% of investors left out of its recent debt restructuring the chance to sign up on the same terms as the other 99%, an economy...

AFM seeks to ‘level playing field’ for venues and vendors

By Samuel WilkesSeptember 10, 2020, RiskThe Dutch Authority for Financial Markets is calling on the European Union to straighten out a perceived imbalance in its trading and transparency rules – a move that could lead to certain technology providers...

Energy exchanges call for Mifid II adjustments

By Wendy LisneySeptember 10, 2020, Global Investor GroupThe European Union must provide a regulatory framework that does not encourage market participants to shift their power and gas derivatives business to third country jurisdictions, or outside regulated trading venues, a...

EU set to extend access to London clearing houses to mid-2022

By Philip Stafford and Jim BrunsdenSeptember 15, 2020, Financial TimesThe EU is preparing to offer its banks an 18-month extension on access to London’s crucial markets infrastructure as it seeks to prevent a jolt to financial stability when the...

COVID-19 market turmoil raises questions about central bank liquidity strategy, says BIS

By Huw JonesSeptember 14, 2020, ReutersMarket turmoil due to coronavirus lockdowns in March raises questions about whether central banks should offer access to liquidity more widely in future shocks, the Bank for International Settlements (BIS) said on Monday.The BIS,...

WFE warns against “harmful” policies if Covid volatility returns

By Wendy LisneySeptember 14, 2020, Global Investor GroupMaintaining continuous visibility of asset prices and risk premia is crucial to protect markets if a second wave of Covid-19 triggers another phase of heightened volatility, the World Federation of Exchanges (WFE)...

Remote working set to become “standard practice” – CFTC

By Wendy LisneySeptember 14, 2020, Global Investor GroupWorking from home amid Covid-19 will become standard practice indefinitely for many firms, the Commodity Futures Trading Commission (CFTC) has said, as it granted more time for swap dealers to comply with regulations...

SOFR discounting: CCPs prepare for make or break auctions

By Helen BartholomewSeptember 14, 2020, RiskThe US dollar swap market is preparing for what could be a momentous weekend in mid-October. That is when CME and LCH will change the risk-free rate they use to value and pay interest...

EU ramps up no-deal preparations as it weighs UK’s Brexit ultimatum

By Guy Faulconbridge and Gabriela BaczynskaSeptember 11, 2020, ReutersThe European Union was on Friday ramping up preparations for a tumultuous end to the four-year Brexit saga as top officials prepared to brief its 27 members on British Prime Minister...

China issues new rules to tighten control over financial holding firms

By Leng ChengSeptember 13, 2020, ReutersChina issued new rules on Sunday to regulate financial holding companies, in its latest move to prevent systematic risks to the nation’s vast financial sector. The new rules were set to stem loopholes in...

NYSE Signals It Will Exit New Jersey if State Taxes Stock Trades

By Alexander Osipovich and Joseph De AvilaSeptember 11, 2020, The Wall Street JournalThe New York Stock Exchange is signaling that it will move its electronic trading systems out of New Jersey if the state implements a proposed tax on financial transactions....