If a Brexit deal is agreed on, there is still no guarantee that UK central counterparties will be granted immediate recognition and that would force some participants to lose the benefits of a transparent, liquid, exchange traded and cleared market, according to Simon Puleston Jones, head of Europe at the FIA. "If there is no exchange-traded derivatives option in Europe or elsewhere, the only alternative is the over-the-counter market," said Puleston Jones.
Nasdaq Nordic launched the world's first exchange listed futures contract based on the OMXS30 environmental, social and governance index, which was introduced in July.
The US Justice Department has indicted three traders who worked at a New York-based financial services firm for allegedly spoofing futures contracts on the Chicago Mercantile Exchange and the Chicago Board of Trade, as well as commodities fraud. The lawsuit alleged Yuchun Mao, Kamaldeep Gandhi and Krishna Mohan lost more than $60 million between March 2012 and March 2014.
FIA President and CEO Walt Lukken discusses the upcoming FIA Expo in Chicago, cross border trading, investment in technology, the futures and options market, and the causes of the decrease in the number of futures commission merchants. Lukken says increased compliance costs and high cost of entry are causing a shrinking FCM community.
India's National Stock Exchange has launched two contracts in gold and one silver contract. NSE says it also waiting for approval from the Securities and Exchange Board of India to enter into possible futures trading of crude oil and copper contracts.
Trade tensions between the US and China is putting stress on the physical supply chains of global metals trading and causing waves of speculative selling in response to tariffs. But participants of LME Week seem to agree that this is no classic trade war and "learning how to trade the trade war has only just begun for the metals sector," writes Andy Home.
Increasing Pell Grants, changing the name of award letters and clarifying what they include, and simplifying the loan repayment system would improve higher education financing, write Brad Conner, a vice chairman at Citizens Financial Group and former chairman of the Consumer Bankers Association, and William Hoagland, senior vice president of the Bipartisan Policy Center and a former staff director of the Senate Budget Committee. Roughly 90% of student loans are made by the federal government, which reports a delinquency and default rate in the double digits.
Enforcement actions taken by US state securities regulators in 2017 led to 1,985 years of prison time and probation, 47% higher than in 2016, according to a North American Securities Administrators Association report. More than $486 million in restitution was ordered to be given back to investors, and fines reached $79 million, the report said.
Rep. Jeb Hensarling, R-Texas, saw several of his sponsored bills fail during his tenure as chairman of the House Financial Services Committee, including legislation that would have dismantled the Dodd-Frank Act and weakened the Consumer Financial Protection Bureau. Hensarling, who is leaving Congress at the end of this term, said the changes were worth pursuing and noted that several provisions in his failed Financial CHOICE Act ended up in a successful bipartisan economic bill.
Stock indexes recovered partially at the end of last week, after a midweek plunge, and technical analyst Katie Stockton, CMT, sees strong reasons to buy in coming days. She acknowledges that investment decisions can be "harrowing" in such market conditions but expects the upturn to continue into this week, noting the first relief rally "tends to be the most explosive."