Bank of America strategists say sterling could reach $1.40 next year if the UK's Conservative party returns to power after the Dec. 12 election and presses ahead with its plan to take the UK out of the EU. "The ferocity of the move is indicative of a market that is keen to avoid missing what could potentially be the start of meaningful trend appreciation in sterling," the strategists said in a note to clients.
The Federal Reserve, Federal Deposit Insurance Corporation and Office of the Comptroller of the Currency have agreed to loosen capital requirements for some supplementary leverage ratio calculations by excluding qualifying deposits.
Rules the European Commission adopts for granting US and UK clearinghouses EU access will be clear, straightforward and predictable, says Patrick Pearson, head of financial-market infrastructure at the commission. "We like legal certainty, we will be working on that basis and on that premise," he says.
EU regulators aren't responding to firms' calls for more clarity on which products are covered by the Packaged Retail and Insurance-based Investment Products directive, market participants say. There are signs companies are avoiding issuing bonds to retail investors to escape the complexity and uncertainty of PRIIPs.
Foreign direct investment into China reached $107.1 billion during the first 10 months of this year, a 6.6% increase compared with the same period last year, according to the Commerce Ministry. The government has reduced requirements to encourage inbound investment, and a law aimed at leveling the playing field for foreign companies takes effect next year.
The US Federal Reserve, Office of the Comptroller of the Currency and the Federal Deposit Insurance Corp. have approved final rules for using the standardized approach for measuring counterparty credit risk for derivatives contracts. The SA-CCR rules become effective for large global banks and optional for smaller banks on April 1, 2020.
DRW Holdings CEO Don Wilson says he expects the London Interbank Offered Rate will still be in use after 2021 because its Secured Overnight Financing Rate replacement is a useful risk-management tool, but it is "not a good replacement for Libor." "Why do we want to start this kind of forced march towards the death of Libor when there are clearly some problems," Wilson notes.
BNP Paribas Americas chief compliance officer Eric Young told a panel that after paying a record fine for sanctions violations in 2014, the French bank has improved its ethical culture and made compliance an independent function separate from the risk and legal departments. The firm has also established chief conduct and control officers that serve as the first line of defense.
Commodity Futures Trading Commission Chairman Heath Tarbert said that because bitcoin has a 10-year history it was easy to classify it as a commodity, rather than a security. But Facebook's libra is developing and because of the way it is structured, it is a "fundamentally different product."
An execution source code schema developed by FIA and FIA Tech aimed at making post-trade processing more efficient has been successfully implemented on the CME Globex platform, with other exchanges expected to adopt the code in the future. "Implementing these codes on an industry-wide basis will improve operational efficiency and support greater automation in post-trade processes," said Mark Davis, FIA Tech's senior vice president and head of strategy.