US Commodity Futures Trading Commission member Dan Berkovitz told the 34th annual Futures & Options Expo in Chicago that he was optimistic that the CFTC's five commissioners will act in a bipartisan way on policy issues that are now pending. Berkovitz said "there's both trust and respect among the members of the commission, and that comes because many of us have worked together."
European Central Bank President Mario Draghi, likely targeting Italy's budget dispute, has told EU leaders questioning the bloc's rules could worsen its economic outlook and financial conditions, a source says. The spread between 10-year Italian and German bond yields has expanded to the widest since 2013.
Exchange executives questioned margining direct clearing members in light of Nasdaq's declared default of an individual trader in October. Intercontinental Exchange Chairman and CEO Jeff Sprecher told a panel during FIA's 34th Annual Futures & Options Expo in Chicago that the positions of direct clearing members need more scrutiny by central counterparties to be sure they are margined correctly.
Chinese economic growth declined to 6.5% in the third quarter from 6.7% in Q2, as an intensifying trade conflict with the US began to affect Chinese companies. The Q3 growth rate is the lowest China has experienced since the financial crisis.
Uber, Lyft and Palantir are among a growing number of high-profile technology companies on track for initial public offerings next year. Deals in planning stages or in the IPO pipeline indicate valuations could exceed $100 billion.
Brexit won't disrupt insurance and derivatives contracts between parties in the UK and those in countries remaining in the EU, even if no transition deal is reached, says Olivier Guersent, director-general of financial services at the European Commission. "There is no cliff" for cross-border contracts on Brexit day, he says.
European sentiment for hedge long and short bond strategy dropped 15.5 percentage points in the third quarter compared with Q2, while multistrategy declined 13.6 percentage points, according to a survey by Last Word Research. Sentiment for all hedge strategies declined in Q3, the survey finds.
The European Central Bank could end a policy of paying negative interest on deposits in January 2020, a Bloomberg poll of economists finds. Renewed focus on interest rates comes as policymakers wind down asset purchases to a cap of €2.6 trillion at year-end.
The US Commodity Futures Trading Commission says it has been unable to get the EU to explain how the definition of "systemic risk" in European Parliament legislation would apply to US clearinghouses. US officials are increasingly concerned US clearinghouses will have to face additional regulation in the EU.
An industrywide approach to implementing changes to the EU Shareholder Rights Directive is needed to ensure uniform application across the bloc, according to a white paper by Broadridge Financial Solutions. The update brings harmonisation in some areas but leaves others open to discretion on the part of custodians and other intermediaries, the paper says.
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