ISDA Wants Regulators to use its Model to Draft Rules

By Josephine Gallagher January 9, 2020, WatersTechnology The International Swaps and Derivatives Association (ISDA) is pushing its Common Domain Model (CDM) for regulators to adopt when amending or drafting future regulations. “We want to do this as an open...

ESMA releases reaction to Nasdaq CCP blow up

January 9, 2020, GlobalCapital The European Securities and Markets Authority (ESMA) has published the outcome of its analysis and follow up actions on CCPs’ membership criteria and due diligence in the wake of the 2018 default at Nasdaq Clearing....

SEC Preps Shakeup of U.S. Consolidated Tapes

By Emilia David and Max Bowie January 9, 2020, WatersTechnology The Securities and Exchange Commission (SEC) has proposed drastic changes to how the U.S. consolidated tapes of market data from equities exchanges will be operated and governed, in a...

Industry reacts to SFTR’s guidelines

By Drew Nicol January 8, 2020, Securities Lending Times As the dust settles following the release of the Securities Financing Transactions Regulation’s (SFTR) final guidelines on Monday, the securities lending industry has had its say on the incoming reporting...

Trade bodies FIA, ISDA back MiFID II reform

By Joe Walters January 9, 2020, Global Investor Group The Futures Industry Association (FIA) and the International Swaps and Derivatives Association (ISDA) have suggested improvements to Europe’s MiFID II rules on commodity derivative position limits. MiFID II position limits...

FCA outlines new strategy to become ‘data-driven’ regulator

By Hayley McDowell January 8, 2020, The Trade The U.K.’s financial watchdog has unveiled transformation plans to become a more data-driven regulator alongside the Bank of England. The new data strategy will see the Financial Conduct Authority’s (FCA) use...

SEC Democratic Commissioner Slams CAT Delays

By Joanna Wright January 8, 2020, Waters Technology On Wednesday, the Securities and Exchange Commission’s Robert Jackson slammed the lack of progress in building the Consolidated Audit Tape (CAT) as he dissented from a new proposal to modernize the...

Regulators Seek to Loosen U.S. Exchanges’ Control Over Stock Data

By Paul Kiernan and Alexander Osipovich January 8, 2020, The Wall Street Journal Regulators are taking steps to loosen the control that big U.S. exchanges exert over the flow of real-time stock prices to the public in an effort...

Will 2020 be the year the Libor transition takes off?

By Thomas Helm January 7, 2020, Practice Insight from IFLR Clarity, clarity, clarity is the oft-repeated mantra in the Libor transition world. Term rates, market conventions, fallbacks, compounded in arrear calculations… there are still significant gaps in the knowledge...

ESMA publishes final SFTR guidelines

By Oliver Wade January 6, 2020, Global Investor Group The European Securities and Markets Authority (ESMA) has published its final report and guidelines under the Securities Financing Transactions Regulation (SFTR), alongside amended SFTR validation rules and a statement on...

SEC gives nod to Phase II of OCC safeguards

By Oliver Wade January 7, 2020, Global Investor Group The U.S. Securities and Exchange Commission (SEC) has given the green light to the Options Clearing Corporation’s (OCC) second phase of its Financial Safeguards Framework (FSF). In a memo on...

ISDA releases guide on cross-border trading

By Joe Walters January 7, 2020, Global Investor Group The International Swaps and Derivatives Association (ISDA) has released a guide on the cross-border application of E.U., U.S., and Japanese margin rules for non-cleared derivatives. The release on January 6...

ESMA study finds circuit breakers significantly widen bid-ask spreads

By Hayley McDowell January 7, 2020, The Trade The use of circuit breakers significantly widens spreads immediately after the mechanisms are triggered, according to a study from the European Securities and Markets Authority (ESMA). Analysing a database of circuit...

Trading Picks Up but Debt Sales Wane for Fed’s Libor Replacement

By Daniel Krueger January 7, 2020, The Wall Street Journal Traders in the futures market are beginning to embrace the Federal Reserve’s proposed replacement for the troubled London interbank offered rate. The same can’t be said for companies issuing...

Regulators Ask Banks About Preparations for Libor’s Demise

By Kristin Broughton January 3, 2020, The Wall Street Journal Financial regulators are asking banks to show they have plans in place to manage the risks stemming from the planned demise of a key benchmark interest rate. Regulators, which for months...

City bankers show favor to clients on share ratings

By Alex Ralph December 30, 2019, The Times Investment banks are treating their clients more favorably than other companies in equity research coverage, an investigation by The Times has found. The study of the ratings given to listed companies...

SEC derivatives rule may lead to new products

By Noah Zuss January 6, 2020, Risk A newly proposed rule on derivatives use by U.S. mutual funds will require asset managers to overhaul their risk management practices, but it could also make it easier for them offer new...

Campaign for shorter market hours gathers momentum in Europe

By Philip Stafford January 5, 2020, Financial Times Banks and fund managers across Europe are confident they are building the momentum to force the region’s stock exchanges to reduce their opening times. During the past few months traders have...

Yellen says regulators need new powers to combat potential asset bubbles

By Greg Robb January 4, 2020, MarketWatch Federal regulators need enhanced powers to combat potential asset bubbles, said former Federal Reserve Chairwoman Janet Yellen on Sunday. Economists, who don’t often agree on much, seemed united at the American Economic...

Shadow banking is growing, remains opaque and carries uncertain risks for the economy

By Greg Robb January 4, 2020, MarketWatch The U.S. shadow banking sector is alive and well, growing at a fast pace and remains opaque, experts said Friday. And while the sector might not cause the next downturn, it could...

China Vows to ‘Win’ Battle Against Mounting Financial Risks

January 4, 2020, Bloomberg China pledged to step up measures to shore up its troubled banks and small businesses while continuing a crackdown on shadow banking and property speculation, in a difficult balancing act that risks exacerbating a build...

Options Markets to Get Liquidity Boost

By Matt Raebel January 2, 2020, John Lothian News A new rule finalized last month by the Federal Reserve Board, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency might make it easier for...

Fed focuses on repo market exit strategy after avoiding year-end crunch

By Jonnelle Marte and Karen Bretrell January 6, 2020, Reuters Wall Street’s worst fears of a year-end funding squeeze never materialized thanks in large part to the quarter-trillion dollars the Federal Reserve stuffed into the market to ensure...

The Fed Plans to Consider Permanent Ways to Keep Money Markets Stable

By Alexandra Scaggs January 4, 2020, Barron’s The Federal Reserve is going to discuss permanent steps that should help it control interest rates and limit volatility in money markets, according to the minutes of its December meeting. The central...

Ex-New York Fed Boss Says It’s Time to Overhaul Repo Toolkit

By Alex Harris and Matthew Boesler January 6, 2020, Bloomberg William Dudley, who used to oversee the Federal Reserve’s interaction with financial markets, said the central bank should introduce a long-discussed but never implemented tool to ensure U.S. cash...

OCC sees securities lending activity fall in 2019

By Natalie Turner January 3, 2020, Securities Lending Times The Options Clearing Corporation (OCC) saw its securities lending central counterparty activity fall by 5.27 percent over 2019, compared to the year before. The Chicago-based equity derivatives clearinghouse chalked up...

Here are 3 things to watch as Fed’s balance sheet expands in 2020

By Joy Wiltermuth and Sunny Oh January 4, 2020, MarketWatch The Federal Reserve’s most recent monetary stimulus spree has expanded its balance sheet to near its all-time high of $4.5 trillion set in the aftermath of the Great Recession...

Banks warned dragging feet on Libor transition could lead to PPI-style claims

By Mike Turner January 2, 2020, GlobalCapital Banks have been warned that their tardiness in switching away from the Libor benchmark could leave them open to compensation claims, similar to those that followed the UK’s £50bn scandal of banks...

China regulator denies report of halt to Shanghai-London Stock Connect listings

By Xiaochong Zhang and Andrew Galbraith January 3, 2020, Reuters China’s securities regulator said on Friday that the Shanghai-London Stock Connect was operating normally, following a Reuters report that China had halted cross-border listings through the link. “Media reports...

China to trial interest rate options trading on February 24

January 2, 2020, Reuters China will trial trading in interest rate options from February 24, the country’s foreign exchange trading platform said on Thursday. The platform, the National Interbank Funding Center, is overseen by the central bank. full article