If more derivatives transactions were centrally cleared, banks could improve their risk-weighted asset calculations for upcoming Basel Committee on Banking Supervision IV compliance, UBS analysts wrote in a note to clients. The analysts said that moving half of derivatives to central clearing could lower sector RWA inflation by about 2%.
Bank of England Governor Mark Carney told lawmakers that UK banks could deal with price swings in the pound stemming from Brexit developments for up to three weeks.
The People's Bank of China has injected 200 billion yuan into the financial system through a medium-term loan facility, surprising traders. China usually injects liquidity when previously issued loans mature.
The Commodity Futures Trading Commission is set to consider a pair of proposals that would change how swap margin requirements are applied to some market participants. The proposals would extend the deadline for smaller firms to meet their initial margin requirements by one year, and allow a permanent exemption for the European Stability Mechanism to align with the treatment of other multilateral financial institutions.
The Securities and Exchange Commission has re-opened the comment period for the exchange-traded fund proposed by Wilshire Phoenix and NYSE Arca after the firms filed an amendment to the proposal. Under the updated proposal, Coinbase Custody will act as the bitcoin custodian, and CME and Intercontinental Exchange will provide the bitcoin futures in the US, instead of CME and Cboe.
Plans by Facebook and some central banks to launch digital currencies are causing US policymakers within and outside the Federal Reserve to strongly consider whether the Fed should establish a competing cryptocurrency.
Eurex has launched three new MSCI index-based futures contracts. Based on the MSCI EM Dividend Point Index, the MSCI EAFE Dividend Point Index and the MSCI World Dividend Point Index, the contracts will give participants "the appropriate risk management instruments to hedge dividend payments globally," says Eurex's Michael Peters.
The Moscow Exchange's new five-year strategy is focused on increasing its client base and growing its revenue by 10% per year through 2024. MOEX says it will broaden access, extend its trading hours and expand its products and services to put it "on par with the best exchange platforms globally."
Officials with the US Department of Education told loan servicers not to share information with examiners from the Consumer Financial Protection Bureau who were looking into the Student Loan Forgiveness Program. The program, which has been the subject of several lawsuits and the target of a critical report by a government watchdog, promises to erase the loan debt of borrowers who are in public service and who make timely payments for 10 years -- but only 1% of those seeking relief are approved.
Presidential candidates Joe Biden and Elizabeth Warren sparred over who should get credit for the creation of the Consumer Financial Protection Bureau. Biden, who was vice-president when the CFPB was created, said he helped secure votes for the agency while Warren ignored Biden and thanked former President Barack Obama.