The Bank of England's Financial Policy Committee plans to conduct two stress tests of banks. The first reviews operational plans for adapting to the post-Brexit trading environment, while the second questions how banks would respond to a deep, prolonged recession.
British banks moving to the eurozone because of Brexit will be given up to two years to fully comply with the European Central Bank's rules, said Sabine Lautenschlaeger, vice chair of the ECB's supervisory board. Financial institutions will be granted "bank-specific phase-in periods" based on their business operations and risk profiles, she said.
Commodity Futures Trading Commission acting Chairman J. Christopher Giancarlo plans to move some market-manipulation surveillance to the Division of Enforcement, while trading surveillance will remain at the Division of Market Oversight, sources say. "Moving surveillance to Enforcement is going to make it easier for surveillance staff to communicate directly with the staff that's going to investigate the lead," said former CFTC attorney Brian Walsh.
CBOE Options Exchange experienced a connectivity issue Monday that caused US options exchanges to declare self-help alerts against CBOE to have trades rerouted. The issue lasted about 30 minutes, and CBOE did not halt trading.
The Financial Industry Regulatory Authority and some exchanges have filed charges against Lek Securities and its CEO, Samuel Lek, saying they helped a client with an alleged market manipulation involving high-frequency trades. The client is said to have engaged in layering, in which multiple orders were placed in various venues, then canceled, to distort and inflate the true value of the trade.
Hedge funds are said to be developing and testing trade-capable computers with neural networks that operate on principles similar to those of the human brain, although they are not overclaiming ability. Numerous ventures in this field have proved unsuccessful, but deep learning, which is used by companies such as Google, Tesla and Amazon, is attracting interest and experimentation.
ProShares has brought to NYSE Arca exchange-traded funds giving investors triple-leveraged exposure to crude oil futures and the inverse of those futures. The UltraPro 3X Crude Oil EFT is designed to deliver 300% of the performance of the Bloomberg WTI Crude Oil Subindex, while the UltraPro 3X Short Crude Oil ETF seeks to deliver 300% of the inverse of that subindex.
The Securities and Exchange Board of India's plan to let domestic and foreign financial institutions enter the commodity-derivatives market should include a strengthening of SEBI's systems and procedures, writes Kavaljit Singh of Madhyam. The move would "ensure that commodity derivatives contracts are traded in a transparent and fair manner," Singh writes.
FIA is pleased to announce that CFTC acting Chairman J. Christopher Giancarlo has been confirmed as the keynote luncheon speaker at the 39th Annual FIA Law & Compliance Conference. Giancarlo is just the latest addition to a great lineup of leading experts who will discuss a diverse range of regulatory developments and their practical implications. Check out this year's program, which features sessions for all skill levels, and join us May 3 to 5 in Washington, D.C. Register now!