Financial Markets
Top stories summarized by our editors
2/19/2018

Christine Lagarde, managing director of the International Monetary Fund, supports the European Commission's proposal to develop the European Stability Mechanism into a legally established, independent European Monetary Fund. Lagarde says the eurozone "needs a crisis-management system that is independent, able to act quickly and that works according to strict rules".

2/19/2018

The UK government is poised to outline a vision for the financial-services industry after Brexit that includes mutual recognition of regulations to preserve London's access to EU markets. European officials have indicated opposition.

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EU
2/19/2018

The European Central Bank's plan for an alternative to the Euro Overnight Index Average might not be implemented in time to develop a full, marketwide curve, dealers say. The ECB says the rate "will become available before 2020", which might leave market participants needing contingency plans.

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European Central Bank, ECB
2/19/2018

During high market stress in 2015, algorithmic trading increased currency-market volatility, a Bank of England working paper concludes. The BoE studied algorithmic trading during market shock that followed the Swiss National Bank's announcement it would no longer support a fixed exchange rate between the euro and the Swiss franc.

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BoE, Swiss National Bank
2/19/2018

Many bills filed by EU lawmakers to revamp banks' capital requirements call for an increase in the minimum leverage ratio. Proposals range from an internationally approved requirement to a significant increase.

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EU
2/19/2018

France will gain additional flexibility to block foreign companies' acquisition of domestic firms, Prime Minister Edouard Philippe says. A 2014 decree that gives the government power to halt foreign takeovers in the energy, water, transportation, telecommunication and health industries will be broadened to include artificial intelligence, data storage, microchips and space, Philippe says.

2/19/2018

The European Securities and Markets Authority is expected to restrict the amount individuals can borrow to increase contracts-for-difference bets. ESMA might ban crypto-CFDs.

2/19/2018

The Swiss Financial Market Supervisory Authority plans to add anti-money-laundering laws for initial coin offerings without hindering "the innovative potential of blockchain technology". FINMA says it will take a balanced approach to digital-currency regulation, even as Economic Affairs Minister Johann Schneider-Ammann pushes Switzerland to become a "cryptonation".

2/19/2018

J. Christopher Giancarlo, chairman of the US Commodity Futures Trading Commission, says he will voice reservations about proposed EU supervision of foreign derivatives clearinghouses during visits this week with regulators across Europe. Potential consequences of an EU proposal for regulating non-EU clearinghouses after Brexit "are quite breathtaking", he says in congressional testimony.

2/16/2018

Philip Lane, governor of Ireland's central bank, and Spanish Economy Minister Luis de Guindos are under consideration for vice president of the European Central Bank. Lane appears to be the choice of the European Parliament's economic committee, while the French government "most likely" will back de Guindos, a source says.

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Reuters, Reuters