Regulatory and market changes concerning Libor have prompted pension funds to switch to bonds from swaps, according to a survey by BMO Global Asset Management. Meanwhile, a trend of switching to the Sterling Overnight Index Average from Libor for swaps has emerged.
Shares in Europe rose marginally Thursday in light of an announcement US-Chinese trade talks will resume this month, with the STOXX Europe 600 index gaining 0.2%. However, President Donald Trump has said the US will keep a tough line and will demand concessions from China.
Turkish Finance Minister Berat Albayrak has moved to allay concerns Turkey might need an International Monetary Fund bailout, promising to protect banks and to cut public spending. The lira gained 4% against the US dollar after the statement, although the possibility of further US sanctions remains a threat.
Tradeweb Markets cites Europe's revised Markets in Financial Instruments Directive for a 158.4% increase in average daily derivatives volume last month compared with July 2017. Another contributor is technical innovation, including click-to-trade functionality, Tradeweb says.
The European Commission has rejected a proposal from regulators to crack down on brokers' offering of reduced tick sizes. Instead, the commission is considering narrowly drawn limits on tick sizes to prevent disruption of trading.
Tradeweb Markets has introduced a request-for-quote platform for US equity options that lets institutional investors send multiple electronic price requests to market makers for tighter spreads and better access to liquidity. Tradeweb says nine banks and proprietary-trading firms have committed to the platform.
CME Group, Intercontinental Exchange and the Institute of International Bankers want the Commodity Futures Trading Commission to exclude cleared and platform-traded swaps from calculation of whether market participants must register as swaps dealers because they do more than $8 billion annually in derivatives trades. CFTC Chairman J. Christopher Giancarlo favors such an exemption.
Replacement of the Australian Securities Exchange's settlement infrastructure with blockchain technology, expected to go live between late 2020 and early 2021, won't result in immediate "revenue opportunities," CEO Dominic Stevens says. "The benefits of all this will play out in a couple of years' time," Stevens says.
SFOX, a startup that provides order-routing technology for cryptocurrency trading, has drawn $23 million in investment. Tribe Capital and Social Capital led the funding round, which also involved Khosla Ventures, Y Combinator, Blockchain Capital and Digital Currency Group.
- Page 1