HSBC and Standard Chartered have issued statements in support of China's security legislation for Hong Kong, marking a departure from banks' normally neutral stance on politics. The statements contrast with the position of Nomura, which says it is reviewing its presence in Hong Kong.
The American Interbank Offered Rate would be a "fully appropriate" alternative for regional and midsize banks as they phase out Libor, Federal Reserve Chairman Jerome Powell says in a letter to US Sen. Tom Cotton. Ameribor is "based on a cohesive and well-defined market that meets the International Organization of Securities Commissions' principles for financial benchmarks," Powell says.
Cboe Global Markets has acquired Trade Alert, a New York-based trading services firm which provides real-time market data and activity alerts. Trade Alert's information will be integrated into Cboe's products within the information solutions division.
The move by regulators to ease some rules on traders working from home can be risky, especially since the volatility the market is currently experiencing could entice traders to take bigger risks than they normally might, writes Rochelle Toplensky.
Brian Brooks, acting head of the US Office of the Comptroller of the Currency, said his agency along with the Federal Reserve and Federal Deposit Insurance Corp. are ready to resume work on overhaul banking regulations, including the Volcker Rule. Brooks said one of the OCC's first moves will be to resume working on a plan to dial back lenders' margin requirements.
US Senators Dianne Feinstein, D-Calif., and Marco Rubio, R-Fla., want the Commodity Futures Trading Commission's Climate-Related Market Risk Subcommittee to address the financial risk of climate change when it presents its report. "We appreciate that the CFTC recognizes the importance of climate change risk, and we encourage you to produce robust and specific recommendations for understanding and mitigating the risks of climate change to the U.S. financial system," noted the senators.
If a crypto custodian becomes insolvent, it is not clear what rights investors would have in pursuing legal action, according to a study from the Leiden Law School. The study found the legal rights of customers is "complicated by a lack of harmonized private international law rules that are appropriate for the specific nature of cryptocurrencies and the relations between customers and crypto-custodians."
Bitcoin's spiky trading around the $10,000 level this week stems from a number of factors, including short-term changes in demand and the increased use of derivatives in the space, according to DigitalMint President Marc Grens. "As a result of substantial short-term shifts and increases in liquidity, this pattern will continue to rear its Bart Simpson head several more times during the current global recession and potential recovery following the lockdown orders," Grens says.
SoftBank Group has formed a $100 million fund to invest in new companies headed by people of color and will search for founders from communities confronted by "systemic disadvantages in building and scaling their businesses," the company said. The SoftBank Group International office in San Carlos, Calif., will manage the new Opportunity Growth Fund.
Inky, a startup that developed cloud-based anti-phishing technology, raised $20 million in its Series B funding round. The company will use the new capital to attract new users in the US and expand into Europe, Asia and Latin America.