Goldman Sachs president John Waldron says the bank will delay launching its digital wealth management platform until next year. Waldron stressed that other strategic plans will proceed.
Spending by European banks on open banking is growing at an annual rate of between 20% and 29%, according to a new report by banking platform Tink and YouGov. Tink chief executive Daniel Kjellen said the development shows banks no longer view open banking as a compliance challenge, rather as an opportunity to grow their business.
CME Group's Chicago trading floor, which closed on March 13 due to the coronavirus outbreak, has not set a date when it will reopen, though Cboe Global Markets plans to reopen the Cboe Options Exchange trading floor on June 8. Some fear that by the time the floors reopen, customers will have adapted to computerized trading and will no longer need open outcry to make prices.
The London Metal Exchange will consult with members and form a working group to explore whether new rules are needed to curb metals market abuse and insider trading. The LME noted that "the pan-European framework governing the prevention of market abuse is currently under review and the cross-border management of financial crime is subject to intensified regulatory scrutiny."
ICE Benchmark Administration is moving to a waterfall methodology for its ICE swap rate on May 29 for pricing swaptions and some rate-linked structured products as a safety net for when firm swap quotes are unavailable. The new methodology will include dealer-to-client quotes from Tradeweb to avoid interruptions.
The coronavirus outbreak has hit aluminium trading hard, with the London Metal Exchange seeing prices drop to a four-year low as inventories surge past demand. For the US, the aluminium market also has to cope with a 10% import tariff, and the "spectre of a negative premium is just the latest manifestation of the disruptive power of those tariffs," writes analyst Andy Home.
Despite rising prices, gold futures trading volumes in New York have slumped as banks have pulled back from trading the precious metal. HSBC saw a $200 million loss in one day in March amid an unprecedented price gap between futures and physical gold.
The European Systemic Risk Board's Giuseppe Insalaco says EU lawmakers need to include a carve-out for interoperable central counterparties in the new Central Counterparty Recovery and Resolution Regulation to avoid troubled CCPs from dragging down others during default resolution actions.
Bank of Nova Scotia has established a $168 million fund to cover the closure costs of its metals trading business and possible expenses stemming from an investigation of its metals trading activities by the Department of Justice and Commodity Futures Trading Commission.
The International Swaps and Derivatives Association and Futures Industry Association say their members are not in favor of a mandatory consolidated tape for all asset classes under the revised Markets in Financial Instruments Directive. Frequently traded derivatives are predominantly used by sophisticated market participants for risk management purposes and the use case is therefore rather limited, the associations said.