European banks "should prepare for the situation where higher capital requirements could kick-in after June 2022," rather than assume that the UK's temporary third party clearing equivalence will be extended, European Commission DG FISMA director Ugo Bassi said in a keynote speech at the ISDA Europe Conference. "That doesn't mean that we have stopped working in the meantime, quite the opposite, and we are continuing to work on CCP equivalence assessments for a good number of third countries," Bassi said.
Bursa Malaysia has sold 50,000 shares of CME Group stock in the open market in order to fund "initiatives to ensure continuous development to the ecosystem and infrastructure of the exchange," leaving the exchange with 104,250 shares. "Given the completion of the put option exercise on Dec 6, 2019, Bursa Malaysia has decided to dispose of the balance of the remaining shares to capitalize on the appreciating share price of CME Group," Bursa Malaysia said.
The copper market swings and supply squeeze at the London Metal Exchange sent 3-month contracts to a record premium of more than $1,000 a ton. The LME has experienced a pattern of inflated prices followed by falls dating back to 1887, and imposed rules in the 1990s to force large position holders to lend its metal to other participants.
The EU has informed UK traders it is increasing its efforts to prevent the possibility of avoidance of post-Brexit rules against trading in the eurozone. Such tactics would include a London-based trader using instant messaging to pass transaction instructions to a colleague abroad for execution in the EU.
London Stock Exchange Group CEO David Schwimmer has predicted there will be "no dramatic changes" to current post-Brexit equivalence arrangements on clearinghouses between the UK and EU due to the importance of LCH to the market. "It has become increasingly clear how important LCH is to our EU domiciled members and clients. There is an ongoing recognition by customers, members and various other stakeholders of the importance of our service," Schwimmer said.
European Commission DG FISMA director Ugo Bassi told an ISDA conference panel that new guidance on the Central Securities Depositories Regulation's mandatory buy-ins may come this week after the European Securities and Markets Authority recommended the buy-ins be delayed. "There is a legal issue that we cannot postpone the entering into force of the specific part of the regime related to mandatory buy-ins through a simple modification of the RTS," said Bassi.
New York-based event wagering platform Polymarket is being investigated by the US Commodity Futures Trading Commission as to whether swaps or binary options are being allowed to be improperly traded, according to sources. The CFTC is also examining the use of a stablecoin backed by Coinbase Global for making Polymarket bets.
Morgan Stanley says it has saved around 50,000 human work hours and $10 million in fees by using so-called robot lawyers to handle the heavy administrative burden of switching contracts away from Libor. Several other US banks report successful use of AI in the transition process, and a JPMorgan Chase spokesperson says deploying the technology for other time-consuming tasks is now being considered.
Technical analyst Bob Lang notes numerous positive indications that point to outstanding stock trading conditions, including seven consecutive days of gains on the S&P 500, the other main indexes at or near all-time highs, and the VIX volatility index falling "like a stone". With some major earnings reports and key economic data releases due this week, Lang expects momentum to keep building and possible stock market gains of as much as 10%, although there may be "a shallow pullback" in the near term due to overbought conditions.
Technical analyst Katie Stockton, CMT, notes bitcoin soared past its previous all-time high after its first futures exchange-traded fund launched last week, and says it is now capable of an onward ascent to an estimated $89,000. Bitcoin has been the strongest performing cryptocurrency since September and some market watchers go further to contend a rise to $100,000 before year-end is not impossible.