ECB: No change to quantitative easing for now | Investor appetite for European stocks returns | Citigroup, Deutsche Bank say Frankfurt move is likely
21 July 2017
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ECB: No change to quantitative easing for now
ECB: No change to quantitative easing for now
Draghi (Hannelore Foerster/Getty Images)
The European Central Bank has indicated that it has no plans yet to start tapering its bond-buying scheme, with President Mario Draghi saying it will be discussed in the fall. Other central banks such as the Bank of Japan have made similar decisions, as inflation continues to remain low despite a generally brightening economic outlook.
The Wall Street Journal (tiered subscription model) (20 Jul.) 
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Industry News
Investor appetite for European stocks returns
European equity purchases rose more than $3 billion in the week that ended Wednesday, marking revived investor appetite. In the same period, $840 million was withdrawn from US funds.
Financial Times (tiered subscription model) (20 Jul.) 
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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) (20 Jul.) 
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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) (20 Jul.) 
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Commentary: Saudi Aramco IPO will test stock pickers
Saudi Aramco's upcoming initial public offering will provide a test of fund managers' skills, with close scrutiny of their decisions on whether to buy or pass on the issued stocks.
Financial Times (tiered subscription model) (19 Jul.) 
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Regulatory Roundup
Asian banks may be denied simpler FRTB standardisation
A number of 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 to be unavailable for use across the board by banks with overseas subsidiaries, a common set-up for many Asian entities.
Risk (subscription required) (21 Jul.) 
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Report: Failed Brexit deal would be disastrous
A report by The UK in a Changing Europe think tank refuted Prime Minister Theresa May's assertion that "no deal is better than a bad deal" as Britain withdraws from the EU. Failed Brexit negotiations could result in "a further significant fall in the exchange rate, a consequent rise in inflation, a fall in wages and consumer demand and a fall in business confidence, leading to a slowdown in investment", the report says.
Politico Pro (subscription required) (20 Jul.) 
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Nasdaq wants MiFID II's systematic-internaliser rules re-examined
Nasdaq says systematic internalisers will have an unfair advantage over other trading platforms under Europe's revised Markets in Financial Instruments Directive. Nasdaq is calling on the European Commission to reconsider rules governing systematic internalisers.
The Trade (UK) (19 Jul.) 
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Spotlight on China
PBOC money supply boost highest this year
The People's Bank of China injected 510 billion yuan into the financial system this week, the most in six months. The bank will continue to actively manage liquidity as it works to deleverage the economy, market observers say.
Bloomberg (20 Jul.) 
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Tech Trends
Quant funds seek alternative tech
Quant funds are expected to spend $7 billion annually by 2020 in their quest for technology that aids development of investment strategies to get an edge on competitors. Image recognition that monitors and extrapolates information such as the number of customers entering a store, along with extensive use of social media, are among techniques being evaluated, although observers say data extracted might not always prove substantively useful.
Risk (subscription required) (19 Jul.) 
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The Capital Markets Conference: Where the Capital Markets Meet -- 23-24 October in Washington, D.C.
Returning to Washington, D.C., on 23-24 October, SIFMA's Annual Meeting features candid conversations and in-depth breakout sessions on the state of the capital markets, including today's business, economic and financial regulatory outlook. Confirmed speakers include US Treasury Secretary Steven Mnuchin; Abigail Johnson of Fidelity Investments; David Solomon of Goldman Sachs; and Warren Stephens of Stephens Inc. for one-on-one conversations. Join us for expert insights and unparalleled networking with the foremost policymakers, regulators and financial-market experts. Early-bird rates now available.
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Programme available -- Global Corporate Actions Forum: 5 October, Boston
Hosted by the Corporate Actions Section (CAS) of SIFMA's Operations & Technology Society, this annual event brings together subject matter experts to provide valuable information on managing risk and improving processes. Sessions include: What you need to know about US and Global Tax Regulations with a focus on 305C, 871(m), and Reclaim Updates; Blockchain and its Impact on Corporate Actions; Regulatory Insights from FINRA, NYSE and NASDAQ; Proxy and Corporate Actions Shareholder Communications Update and more. Register today!
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