Financial Markets
Top stories summarized by our editors
9/20/2019

US Securities and Exchange Commission Chairman Jay Clayton told a conference that firm regulations need to be in place before bitcoin can be traded on major exchanges. "We have to get to a place where we can be confident that trading is better regulated," said Clayton.

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CNBC, The Block
9/20/2019

Sterling has climbed after European Commission President Jean-Claude Juncker said a Brexit deal is possible before 31 October. Wells Fargo Securities strategist Brendan McKenna says the pound could hold on to the gain if an accord is reached but warns of the risk of a sell-off if talks collapse.

9/20/2019

Financial firms have been preparing for two years for implementation of the EU Securities Financing Transactions Regulation, but doubts remain about whether they can fully comply. Some requirements lack clarity about what they mean, Katten partner Nathaniel Lalone says.

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Practice Insight
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EU, EU, Nathaniel Lalone
9/20/2019

Initial public offerings in the UK are on track for their lowest year since 2012 as Brexit uncertainty weighs on both investor and business willingness to risk going public. "Brexit has undoubtedly dampened companies' appetite for IPOs, and many that would have gone ahead have just not happened," says Numis chief Ross Mitchinson.

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Brexit, Ross Mitchinson, Numis
9/20/2019

London Stock Exchange Group chief David Schwimmer says he is optimistic about the prospects of acquiring Refinitiv even as Hong Kong Exchanges and Clearing vows to pursue a takeover bid for LSEG. Schwimmer told a conference that with the importance of data, the Refinitiv acquisition "is a very strong fit strategically from that perspective, and really positions the London Stock Exchange Group very well to take advantage of growth in these areas".

9/20/2019

The possibility of disruption from Brexit has caused only 1,000 UK investment banking staff to be relocated to Europe since the referendum in June 2016, though more may go, according to an EY report. "Financial services firms have the building blocks in place, but have so far transferred fewer staff and assets to the continent than expected," notes the report.

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EY, Brexit, Brexit
9/20/2019

Unbundling under the Markets in Financial Instruments Directive II has saved equity investors some £70 million in fees, according to a survey of 40 buy- and sell-side firms by the Financial Conduct Authority. The FCA said it could find "no evidence of a material reduction in research coverage" across a range of market cap segments.

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The Trade (UK)
9/20/2019

The UK's Financial Conduct Authority is talking to dealers about the possibility of streaming firm Sonia swap prices to venues, which would provide a data source for future term rates. "In the context of a forward-looking term rate, if it is to be robust it needs to be based on depth of liquidity in real transactions or actionable quotes," FCA head of markets policy Rich Fox told an industry conference.

9/20/2019

US Commodity Futures Trading Commission member Dawn Stump is seeking better coordination and clarity from the European Securities and Market Authority concerning its plans to extend jurisdiction to third country central counterparties. Stump told a conference that ESMA's proposed oversight would "make it difficult for market participants and regulators alike to anticipate which third country CCPs will fall within ESMA's remit".

9/20/2019

Tightening credit conditions and the US-Chinese trade row have pushed Chinese businesses to rethink their debt-driven expansion strategies of recent years.