Financial MarketsRSS

Dutch regulator calls for overhaul of MiFID II transparency rules

The transparency focus of the the Markets in Financial Instruments Directive II has been counterproductive for European fixed income and derivatives markets, the Dutch Authority for the Financial Markets has said

Fair value rule change could resurrect bank-sovereign ‘doom loop’, warns Fitch Ratings

EU banks could increase their carry trades in response to new rules insulating them from reporting fair value in response to movements in their sovereign bond holdings, according to a report from Fitch Ratings, with the risk that it could reinforce the sovereign-bank nexus that contributed to the last European sovereign debt crisis.

HKMA sets out Libor transition timetable for banks

On July 31, the Hong Kong Monetary Authority (HKMA) announced its London interbank offered rate (Libor) transition milestones to alternative reference rates (ARRs) for financial institutions operating in the territory. 

FX settlement risks at record high warns CLS

The US-based central bank backed currency settlements service CLS has warned that the risk of settlement failures in the $6.6tn a day foreign exchange market are at their highest level ever due to the rapid growth and changing composition of the world’s biggest market.

CFTC votes to reduce its international oversight

Commissioners at the US Commodity Futures Trading Commission (CFTC) voted on July 22 to reduce oversight of derivatives trades to mostly US entities and passed a second vote on capital requirements for traders involved in bilateral swaps transactions. 

Mike Pompeo

US-China tensions threaten further fragmentation of global financial system

Financial institutions are treading a wary path as US-China tensions escalate with the prospect of the global financial system being split between the two superpowers. 

SEC allows companies to raise capital on NYSE through direct listings

Companies will be allowed to raise capital through direct listings on the New York Stock Exchange (NYSE) following a ruling by the US Securities and Exchange Commission (SEC).

Deutsche Borse

Covid-19 could see proliferation of financial transaction taxes to fill budget shortfalls

Momentum behind introducing FTTs has been revived by the hugely damaging economic effects of the Covid-19 pandemic leaving financial institutions worried

Thomas Wieser

Eurobonds could fire-up CMU

EU plans to launch a bond to help fund the block’s economic recovery from the Covid-19 pandemic could also prove to be a precursor to CMU provided a number of other important obstacles are tackled

UK government to tackle tough legacy Libor contracts

In its written statement to the UK parliament, Rishi Sunak, the chancellor (finance minister), said the government will use upcoming amendments to the financial services bill to give the Financial Conduct Authority (FCA) the power to manage the orderly transition from the London interbank offered rate (Libor) to alternative rates.