Microsoft has gained impressively during the past three years, but technical analyst Bruce Kamich, CMT, forecasts an imminent stutter. The daily on-balance-volume line has weakened since September, the stock has slipped below the 50-day moving average and the daily and weekly moving average convergence divergence oscillators are emitting a sell signal.
Cryptocurrencies could end narrow consolidation and reach an inflection point within two weeks, technical analyst Robert Sluymer says. "Many are testing important technical trading levels that, if breached, is likely to trigger a dramatic response by traders," Sluymer says.
Wall Street banks have pushed back on a proposal from regulators to relax the Volcker rule. Trade bodies have argued the proposal's focus on the accounting treatment of trades is overly subjective, is too widely drawn and should be dropped.
The Securities and Exchange Commission has introduced the Strategic Hub for Innovation and Financial Technology, a portal that is accessible to the public. FinHub lets users view regulation and information covering blockchain, digital marketplace financing, automated investment advice and artificial intelligence.
Goldman Sachs CEO David Solomon says algorithmic trading is a key contributor to a sell-off that has rattled US markets this month. "There's no question when you look at last week, some of the selling is the result of programmatic selling, because as volatility goes up, some of these algorithms force people to sell," he says.
A group of data aggregators, financial-technology firms and banks, including Bank of America, JPMorgan Chase and Wells Fargo, has launched the Financial Data Exchange, which aims to unify data-sharing standards and processes between entities while safeguarding consumer control, security and choice. SIFMA is a founding member and serves on the board of directors.
After rescinding Prudential Financial's status as a systemically important financial institution, thus removing the last nonbank from the designation, the Financial Stability Oversight Council has stated an intention to shift toward an "activities-based approach" to monitoring nonbank activities. Timothy Cameron, managing director and head of SIFMA's Asset Management Group, notes, "The designation process should be reformed, ensuring that never again will a non-bank financial services entity be inappropriately designated as systemically important."
The final rule on the Securities and Exchange Commission's advice-standards package for firms and investment advisors will be issued in September, according to the agency's agenda. The package includes changes to Form Customer Relationship Summary, amendments to Form ADV and other disclosures regarding communications and restrictions.
The Labor Department has signaled intention to release an updated fiduciary rule in September, amid expectation the rule will harmonize with a version to be unveiled by the Securities and Exchange Commission at the same time. Lisa Bleier, SIFMA managing director and associate general counsel, welcomes synchronization, saying "we have always asked for coordination among agencies."
As federal bodies work to amend aspects of the Volcker rule, SIFMA is calling for restoration of the legality of the traditional tender option bond structure, which has fallen into disuse since the rule was introduced. Michael Decker, a managing director and co-head of SIFMA's muni group, says the rule's restriction on banks and their affiliates from sponsoring a TOB program or from owning a residual certificate issued by a TOB trust has forced banks to develop structures that are "unnecessarily complex, burdensome to investors, and impair liquidity."