Regulators' agenda omits pending Dodd-Frank rules | Analysts encouraged by Brent crude price rise | Studies: Brexit uncertainty slows investment plans
July 21, 2017
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Regulators' agenda omits pending Dodd-Frank rules
Several US regulators, including the Securities and Exchange Commission, appear to be considering dropping unfinished Dodd-Frank Act rules, including restrictions on executive bonuses and oversight of swaps trading, according to a regulatory agenda. "The agenda gives you a sense of where the agency is going to focus its resources, but it is not dispositive about what it ultimately will or will not do," said Willkie Farr & Gallagher's James Burns, a former SEC official.
The Wall Street Journal (tiered subscription model) (7/20) 
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Analysts encouraged by Brent crude price rise
The price per barrel of Brent crude breached the $50 mark this week for the first time since early June, with West Texas Intermediate also showing an uptick. Analysts at Accendo Markets attribute the gains to data from the US Energy Information Administration, which show oil production dropping and inventories falling faster than expected.
City A.M. (London) (7/20),  Financial Times (tiered subscription model) (7/20),  The Wall Street Journal (tiered subscription model) (7/20) 
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Studies: Brexit uncertainty slows investment plans
A Confederation of British Industry survey finds almost 40% of financial-services industry participants think Brexit has hampered their investment plans. But a no-deal scenario could prompt "a fall in business confidence, leading to a slowdown in investment," according to a study by think tank The UK in a Changing Europe.
Finance Magnates (7/20),  Politico Pro (subscription required) (7/20) 
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Citigroup, Deutsche Bank say Frankfurt move is likely
The CEOs at Citigroup and Deutsche Bank have told staff that they plan to relocate substantial parts of their operations to Frankfurt, Germany, moves that could affect hundreds of jobs. Morgan Stanley made a similar announcement this week, adding to a growing list of major banks choosing Frankfurt as their post-Brexit base.
Financial News (UK) (tiered subscription model) (7/20) 
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Banks unconcerned about where EBA goes post-Brexit
Bank executives view the issue of where to move the European Banking Authority after it leaves London because of Brexit as a primarily political matter that won't have a significant effect on the financial institutions it oversees. Chris De Noose, managing director for the World Savings and Retail Banking Institute and the European Savings and Retail Banking Group, said the EBA's location isn't crucial to banks.
Politico Pro (subscription required) (7/19) 
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Regulatory Roundup
Asian banks might be denied simpler FRTB standardization
Market-risk executives at smaller Asian banks say they might be prevented from using the reduced sensitivities-based method of risk calculation, which is designed to offer a simpler alternative to the sensitivities-based approach outlined in the Fundamental Review of the Trading Book. The method appears unavailable for use across the board by banks with overseas subsidiaries, a common setup for many Asian entities.
Risk (subscription required) (7/21) 
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Industry Developments
Experts: Cyberrisk models aren't working
Chief information security officers at a number of banks say the processes for gauging cyberrisk are inaccurate and ineffective. While cyberattacks are generally regarded as the greatest threat banks face, some experts say existing models for assessing their likelihood and effects, such as the Factor Analysis of Information Risk, are too subjective and can provide only guesses, rather than accurate predictions.
Risk (subscription required) (7/20) 
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Electronic bond trading rises ahead of MiFID II
A Liquidnet survey of asset managers found that more than half of them have seen a rise in electronic fixed-income trading over the past 12 months. Additionally, 86% of European managers say Europe's revised Markets in Financial Instruments Directive, which takes effect in January, is the main driver behind the move, compared with 39% of US traders.
The Trade (UK) (7/20) 
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Financial Technology
TickSmith receives $1.5M investment
Illuminate Financial Management has invested $1.5 million in TickSmith, a Montreal firm that provides big data applications for capital markets. TickSmith plans to use the funding for flagship product TickVault.
Banking Technology (7/20) 
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Commodities and Managed Futures
Chinese deal drives up US rice futures
An agreement that allows US exportation of rice to China, the world's largest rice market, for the first time has sent US rice futures up 14 cents to a one-year high. "I don't think it will explode overnight, but I think it could turn into significant demand," said Calrose Co-op rice trader Stuart Hoetger.
Reuters (7/20),  Bloomberg (7/21) 
FIA News
Join us for the FIA Forum: Taipei
On Thursday, Aug. 31, FIA will be hosting its annual Forum in Taipei. Taking place at the Shangri-La's Far Eastern Plaza Hotel, this event will bring together some of the leading players in the region to discuss developments in the Taiwanese market and the impact of global and regional changes on the broader exchange-traded derivatives industry. Attendees will also have the opportunity to network with key industry participants and colleagues throughout the region in this well-attended event. Register!
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