The Securities and Exchange Commission is revisiting rules proposed in 2015 to limit derivatives use by registered funds in the US. Industry groups have criticized the proposal, which would limit the size of derivatives positions and the need for a risk-management program.
Axoni, a startup developing blockchain solutions for trading and settlement functions, has raised $32 million from investors including Goldman Sachs, Franklin Templeton Investments, JPMorgan Chase, NEX Group and Wells Fargo. Banks have tested Axoni's blockchain platform for trading equity derivatives, and the company is working with Depository Trust & Clearing Corp. on a blockchain-based trade repository.
Market participants are finding Europe's revised Markets in Financial Instruments Directive has created unintended consequences, including decreased transparency and data fragmentation in parts of the EU.
The Federal Reserve should look again at a capital surcharge for the eight biggest US banks, given that it is to be combined with stress test results to calculate capital requirements, trade groups say. "The surcharge unnecessarily raises costs that impede the ability of our member institutions to provide credit to support growth of the real economy," the Financial Services Forum says.
The European Central Bank's choice of who replaces Daniele Nouy as head of banking supervision is expected to affect the decision of who succeeds President Mario Draghi. "The chance of people from the same country being named to the head of supervision and ECB president is very slim," says Isabel Schnabel, economic adviser to German Chancellor Angela Merkel.
Cboe Global Markets says it is chipping away at concerns the Securities and Exchange Commission has about cryptocurrency manipulation to become the first to list a bitcoin exchange-traded fund. "There's a huge first-mover advantage in the ETF world," says Chris Concannon, Cboe's president and chief operating officer.
Trading platform Blockchain Board of Derivatives and GMEX Technologies have partnered to launch a hybrid cryptocurrency derivatives trading platform that BBOD says offers "the speed of centralization with the security of decentralization." GMEX Group CEO Hirander Misra says the platform trades "ethereum-based derivatives with a combination of ultrafast order matching, market surveillance, security of funds and full facilitation of margin trading."
Request for market, in which dealers quote the pay and the receive price for interest-rate swaps, is increasing in popularity over request for quote among European buy-side firms that don't wish to divulge trading intentions.
Euronext has upped its shareholding in FastMatch by about 8%, to 97.3%. The deal comes on the heels of a lawsuit by former FastMatch CEO Dmitri Galinov against Euronext that alleges he was unfairly dismissed in June.
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The shift to blockchain means major changes for the clearing industry within five years, GMEX Group CEO Hirander Misra says. "Traditional clearinghouses are not going to exist in the same form in the next three to five years from now due to the way things have moved towards real time," Misra says.
FIA, in partnership with NFA, is producing a course designed to help meet the annual training requirements contained in CFTC Rule 1.11. The course covers the protection regimes for segregated, secured and cleared swap accounts, residual interest, investment of customer funds, and record-keeping, reporting and risk management requirements. Coming in September, more information about this course will be available soon. Learn about our other courses.