Financial Markets
Top stories summarized by our editors
2/22/2018

Politicians including Italian Economy Minister Pier Carlo Padoan and members of Germany's Social Democratic Party say they have not committed to backing Jens Weidmann as the next European Central Bank president. Weidmann is a leading contender, but his opposition to the ECB's accommodative monetary policy is unpopular with some politicians.

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Reuters, Reuters
2/22/2018

Rule changes and negative interest rates on debt instruments held by euro-denominated fixed-value money market funds could result in temporary disappearance of such funds, experts say.

2/22/2018

Italy is protecting bonds from interest-rate shocks and potential market disruptions, including next month's election, by extending average maturity and reducing interest payments.

2/22/2018

EU officials plan to discuss selection of the next European Commission president and whether to increase the budget to address defence, security and immigration issues. The informal summit will focus on decisions that take effect after the UK exits the EU.

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EU, European Commission
2/22/2018

The European Commission reportedly is investigating price increases for stock market data by European exchanges and whether exchanges engage in discriminatory or anti-competitive practices. Market participants have complained of price increases that took effect right before the revised Markets in Financial Instruments Directive went into force.

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European Commission, EU
2/22/2018

A proposal that would let EU regulators supervise large foreign clearinghouses would not interfere with US regulation or threaten EU-US clearing-access deals, officials have told a European Parliament committee. Lawmakers want the rule approved by year-end.

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Reuters
2/22/2018

The Bank of England says it will grant access to foreign clearinghouses from the moment Brexit takes effect and hopes the EU reciprocates for UK entities. BoE official David Bailey acknowledges EU law prevents the BoE from offering central-counterparty access in advance of Brexit but says the central bank is preparing to offer it immediately afterward and is developing a fallback plan for temporary permission if needed.

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BoE, EU, Brexit, David Bailey
2/22/2018

A UK parliamentary committee has approved the appointment of Charles Randell as chairman of the Financial Conduct Authority, despite his investment in a tax-avoidance partnership authorities had challenged. Randell calls his participation an error of judgement.

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Financial Conduct Authority, UK, UK
2/22/2018

China's crackdown on shadow banking by unregulated institutions might be missing the fact that traditional, state-dominated banks drive the activity, according to a report from the Bank for International Settlements. "The 'shadow banking' sector in China has expanded enormously, not in spite of the state but because of it," writes Douglas Bulloch.

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Forbes
2/21/2018

Ilmars Rimsevics, head of Latvia's central bank, has been suspended for allegedly soliciting a bribe, as corruption claims and counterclaims hit the government and financial institutions. The Defence Ministry says the claims might be part of a disinformation campaign to destabilise the government, although it has not named a perpetrator.