Financial MarketsRSS

Swiss CBDC experiment reveals promise as well as concerns

Switzerland has conducted a successful experiment with a wholesale central bank digital currency (CBDC), which looks promising in terms of delivering potential efficiencies, but revealed some governance and policy concerns

Andréa Maechler

BIS advises: “go slow on algos”

The Bank for International Settlements warns of “new risks and challenges that warrant close monitoring” in foreign exchange algorithmic trading, as well as other fast-paced, electronic markets. 

Trade associations launch Asia-Pacific charter to drive market consistency

A group of industry associations have come together to launch an Asia-Pacific Indications of Interest (IOIs) charter to provide transparency and consistency for market participants.

Bank of England keeps negative interest rate debate alive with letter

The debate over zero or negative interest rates is refusing to die in the UK, with the Bank of England (BoE) writing a letter on October 12 to bank CEOs asking about their operational readiness for such an eventuality. 

Spanish parliament passes FTT on share trading

On October 7, the upper house of the Spanish parliament passed a bill authorising a financial transaction tax (FTT) that will take effect in January 2021, and is designed to raise funds to support the Covid-19 hit economy. 

FSB publishes Libor transition road map

The Financial Stability Board (FSB) is upping the ante on firms to move away from the London interbank offered rates (Libor) by the end of 2021 by publishing a transition roadmap.

GET-EU-flags-154000294

MiFID II: how firms can ensure compliance for year three

MiFID II is a demanding piece of legislation and it is therefore crucial that financial firms monitor regulatory guidance and invest in technology to remain compliant.

Algorithms help FX market, but also present challenges, says BIS

Advances in algorithmic trading may have helped price discovery, but have also introduced new risks to the market

ISDA publishes fallbacks amid concerns over Libor cessation readiness

On October 23, the International Swaps and Derivatives Association (ISDA) launched its interbank offered rate (Ibor) fallbacks supplement and Ibor fallbacks protocol amid concern that some market participants are still lagging in their preparations to transition to alternative interest rate benchmarks. 

Certain entities exempted from swaps clearing requirement by CTFC

Final rules exempting swaps entered into by certain entities from The Commodity Futures Trading Commission’s swap clearing requirement under the Commodity Exchange Act (CEA) have been passed by the CFTC.