Cryptocurrencies have a great deal of progress to make if they are to become a significant asset class, although that could be possible within 10 years, said experts on a panel at the Global Financial Leadership Conference. The hype around blockchain and cryptocurrencies has decreased, however, meaning real solutions to business problems are emerging, panellists Dan O'Prey of Digital Asset and Alexis Ohanian of Reddit and Initialized Capital said.
A significant shift in sentiment is behind the decline of the S&P 500, says technical analyst George Davis, CMT. The index has broken below 55-, 100- and 200-day moving averages, as well as a long-term ascending channel from 2015.
Movement in the US dollar-Swedish krona pairing suggests imminent decline for the dollar, technical analyst Blake Morrow writes. The pair is approaching a long-term uptrend line, and the relative strength index has formed a triangle that is breaking lower.
Jonathan Reiner of RT Specialty suggests that insurance agents work with wholesale brokers who have knowledge about cryptocurrency and blockchain coverage before writing policies. "I would caution the retail brokers that are targeting that business to make sure they know the landscape before they go after it," Reiner says.
Clearing changes should be fine-tuned to take into account unintended consequences of higher costs to smaller firms, according to a Financial Stability Board report. Though central clearing has financial-stability benefits, "gains are likely to be smaller than those for entities in the systemic core, particularly relative to the costs of access to central clearing for their low volumes of activity," the report notes.
Commodity Futures Trading Commission member Brian Quintenz discusses myriad issues in an interview, including a Nasdaq Nordic member default, algorithmic trading and cryptocurrencies.
AFME has joined other industry bodies in calling for swift finalisation of a draft agreement on Brexit while encouraging stakeholders to be prepared for a no-deal scenario. A quick resolution is needed to "ensure an orderly withdrawal process", AFME says, and steps should be taken "to mitigate cliff-edge risks in a no-deal scenario".
EU banks are engaged in the kind of risky lending last seen in the run-up to the financial crisis, says Korbinian Ibel, a director general at the European Central Bank. Banks have let underwriting standards slip as they conduct risky lending to increase profitability, Ibel says.
Ministers representing the 27 countries remaining in the EU back a draft agreement for the UK's withdrawal and subsequent relationship with the bloc, EU chief Brexit negotiator Michel Barnier says. The ministers say the EU will not reopen negotiations, regardless of any difficulties UK Prime Minister Theresa May encounters in getting parliamentary approval.
Banks are conducting mergers and acquisitions as they brace for uncertainty that would accompany a no-deal Brexit. Challenges confronting banks taking this approach include a need to obtain licences and credit ratings for newly created entities.
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