Central bank digital currencies could improve the payments infrastructure and provide more opportunities for financial inclusion, but if adopted they must be properly configured and implemented.
Financial Markets
Pay-for-order flow wins reprieve from the SEC
The controversial practice of paying for order flow (PFOF) in the US equities market will not be banned by the Securities and Exchange Commission (SEC), but that does not necessarily mean the activity is off the hook.
CPMI-IOSCO highlights challenges around new clearing models
Though clearing transactions for indirect participants is a key objective of the G20, there are nonetheless challenges around risk management processes related to new access models.
Digital currencies inject new possibilities into cross-border payments
There are good reasons for most countries to improve cross-border payment efficiencies, however that desire is complicated by technical and legal issues. But new forms of digital money potentially open up some interesting new channels.
UMR phase 6: Margin mayhem begins unless dispute resolution is reformed
To quote a former Prime Minister, the final phase of the Uncleared Margin Rules (UMR) is “not the end, it is not even the beginning of the end, but it is, perhaps, the end of the beginning”. The sixth and final phase of UMR has been well telegraphed and firms falling within scope are frantically making final preparations to be compliant.
Australia looks to shake up its digital assets framework
On August 22, the Treasury announced plans to conduct a token-mapping exercise to determine how crypto assets, and related services, should be treated from a regulatory perspective in the country. This could signal a new direction for Australia’s regulation of digital assets.
A euro CBDC would not threaten euro-area deposit takers says Scope Ratings
Threats of central bank digital currencies (CBDCs) undermining bank deposit bases might be overstated, says Scope Ratings as it anticipates the European Central Bank (ECB) launching a pilot scheme sometime next year.
Industry warns over introducing excessive reporting requirements for Treasuries market
New public disclosures for US Treasuries must be carefully calibrated by market segment and only phased in gradually, industry trade bodies warned in response to a feedback request from the US Department of the Treasury.
Looming expiry of SEC relief leaves European asset manager with ‘research’ headache
A decision by the US Securities and Exchange Commission (SEC) to let its Markets in Financial Instruments Directive (MiFID) II ‘no-action' letter lapse in July 2023 could dislocate global investment research markets because the EU and US will have two distinctly different regimes over how such content is paid for.
Stablecoins winning regulatory acceptance – but at a price
Most jurisdictions appear increasingly inclined to accept stablecoins playing a role in the financial system. Some even see them as beneficial innovation. However, that will come at a price in terms of the rules they will have to follow.
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