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.
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.
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.
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.
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.
US bank regulators should keep the power to liquidate large, complex failed financial institutions in an orderly manner, the Treasury Department said in a report. However, this authority should be employed "as an emergency tool for use under only extraordinary circumstances," the report said.
Asian-Pacific stock markets were mixed Thursday after US markets declined in response to Federal Reserve minutes that envisioned higher interest rates. Japan's Nikkei 225 dropped 1.1%; Hong Kong's Hang Seng Index lost 1.5%; Australia's S&P/ASX 200 edged up 0.1%; China's Shanghai Composite advanced 2.2%; South Korea's Kospi fell 0.6%; and India's Sensex was down 0.1%.
General Electric has a clearer picture of about $4 billion in assets it intends to sell under a long-term plan to divest assets worth $20 billion, Chief Financial Officer Jamie Miller said. The company hasn't considered a public offering to bring in capital, she said.
Apple is negotiating directly with mining companies to ensure it has a long-term supply of cobalt, which is essential to the manufacture of batteries in Apple devices, sources said. Surging demand for cobalt for electric vehicles has led to fears of a shortage, causing the market price to more than triple during the past 18 months.
Qualcomm said Broadcom's decision to cut the price it is ready to pay for the company by $4.10 a share "has made an inadequate offer even worse." Broadcom lowered its offer in response to Qualcomm's move to take over NXP Semiconductors.