Financial MarketsRSS
Frankfurt Stock Exchange

Failure to enact solutions is holding CMU back

A panel of industry experts at an AFME conference called on EU authorities to focus on balance and investor outcomes as part of their regulatory review partly meant to infuse momentum into the Capital Markets Union

Gavel

Transition to new interest rate benchmarks remains challenging despite DOJ ruling

An important set of protocols to help the transition away from the tarnished Ibors to alternative interest rate benchmarks have been given the green light by the US Department of Justice, but the industry still faces an uphill task in being ready on time 

ESMA recognises three UK clearing houses as equivalent under EMIR

Three UK-based clearing houses have been recognised as eligible to provide their services in the EU, after the end of the transition period following the withdrawal of the UK from the EU on December 31, 2020, the European Securities and Markets Authority (ESMA) said in a statement.

SEC chairman believes SPACS offer healthy competition to IPOs

Special purpose acquisition companies (SPACS) accompanied by adequate disclosures offer healthy competition to traditional initial public offerings (IPOs), said the chairman of the US Securities and Exchange Commission (SEC), Jay Clayton.

Antitrust considerations delay ISDA launch of IBOR fallbacks documentation

The launch of derivatives fallback documentation as part of the move away from interbank offered rates (IBORs) produced by the International Swaps and Derivatives Association (ISDA) has been delayed as it awaits a ruling on US competition law.

Dutch regulator calls for overhaul of MiFID II transparency rules

The transparency focus of 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.