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Financial Markets
Top stories summarized by our editors
7/9/2020

Some market participants are pushing for the transparency regime of Europe's revised Markets in Financial Instruments Directive to be improved through amendments when MiFID II is reviewed by the European Securities and Markets Authority. Some firms see a revamp as a way to have more trade data disclosed sooner, while banks say there should be an effort to make current data more usable.

7/9/2020

UK Chancellor Rishi Sunak has unveiled a £30 billion package that features support for the leisure and property sectors and measures to encourage job retention. Sunak says the support is needed because the economy has contracted 25% in two months, erasing growth achieved since 2002.

7/9/2020

Developed and emerging economies must implement fiscal reform as soon as the coronavirus pandemic ends, says Mitsuhiro Furusawa, deputy managing director of the International Monetary Fund. Public debt is expected to exceed 100% of global GDP once countries have dealt with the crisis, Furusawa says.

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Reuters
7/9/2020

Insurers, banks and hedge funds could face bigger-than-expected losses on collateralised loan obligations, according to a paper from the Bank for International Settlements. The paper warns of a "higher likelihood of clustered defaults".

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MLex (free content)
7/9/2020

The European Parliament has approved Francois-Louis Michaud as executive director of the European Banking Authority, despite a vote against the appointment by the Economic and Monetary Affairs Committee. The committee had cited a lack of gender balance in senior positions.

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Reuters
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Francois-Louis Michaud
7/9/2020

The coronavirus pandemic will see government borrowing relative to GDP pass levels last seen in World War II, Barclays analysts state in a report. The report contends the US may be best placed to cope with this phenomenon but the eurozone remains vulnerable, given its incomplete monetary and fiscal union, while the UK could face particular difficulties post-Brexit.

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Reuters
7/9/2020

European Central Bank President Christine Lagarde reflects on her earliest days in the post and outlines the bank's direction, playing down further monetary loosening and encouraging a pan-European recovery fund.

7/9/2020

Credit Suisse auctioned off Wirecard convertible bonds at a fraction of their face value on Wednesday, prompting strong interest from investors who reportedly made bids exceeding the $1 billion worth of notes on offer. The instruments are linked to Wirecard's brief tie-up with SoftBank which is now being unwound.

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Wirecard, Wirecard, Softbank
7/9/2020

With the coronavirus pandemic continuing to disrupt markets and draw attention away from many projects, banks are in doubt about the right way to pursue compliance with the Fundamental Review of the Trading Book, Thomas Helm writes. Some have ordered IT freezes, bringing work on FRTB compliance to a standstill, but Helm contends this is inadvisable.

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Practice Insight
7/9/2020

The Federal Reserve has ended 10 months of intervention in the market for short-term funding. Intervention began in September and peaked in March.