Regulators call on banks to support Euribor | Survey: No strategic-plan change for Brexit at 69% of firms | Careful transition from Libor vital, buy-side firm says
August 17, 2017
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Regulators call on banks to support Euribor
European regulators, including Belgium's Financial Services and Markets Authority, are calling for banks to give more short-term voluntary support to the Euro Interbank Offered Rate, which faces an overhaul. The panel that contributes to setting the benchmark has fallen from 49 to 20 banks, and regulators have contacted banks and asked them to return, with the possibility of mandating contribution held back as a last resort.
Risk (subscription required) (8/16) 
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Survey: No strategic-plan change for Brexit at 69% of firms
A Thomson Reuters survey finds 69% of 200 UK and European chief financial officers have not changed strategic planning in anticipation of Brexit. "The results suggest a relatively muted response from business so far -- not the knee-jerk reaction that some expected," said Thomson Reuters' Laurence Kiddle.
Reuters (8/17) 
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Industry News and Trends
Careful transition from Libor vital, buy-side firm says
PIMCO executives have warned any risk-free rate should be well-established before the London Interbank Offered Rate is phased out.
Bloomberg (8/16) 
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ASX plans blockchain decision by year-end
The Australian Securities Exchange plans to decide by the end of the year if it will replace its Clearing House Electronic Subregister System with a distributed ledger settlement system after it completes an assessment of the blockchain technology. "The more we investigate the more we see potential for the technology across a wide range of applications," CEO Dominic Stevens said.
CoinDesk (UK) (8/17),  Computerworld (8/17) 
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Blockchain set to revolutionize gold market
Companies including CME Group, TradeWind Markets and Paxos are introducing blockchain technology into the gold market to add accountability and to tap shy investors. The move likely takes market share away from futures, physical gold bullion and gold exchange-traded funds but creates "another avenue for where investors can look to find value," says Ebele Kemery of JPMorgan Asset Management.
Bloomberg (8/17) 
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Capital benefits slow to come from margin rules
A requirement for dealers to post initial margin for noncleared swaps has not yet lowered banks' capital requirements for counterparty credit risk because regulators take time to approve updates to internal capital models, executives say. "My understanding is that no one has been able to model it properly and get the model approved by the regulators -- and no one is getting capital relief yet from the initial margin," said derivatives expert Jon Gregory.
Risk (subscription required) (8/17) 
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Regulatory Roundup
Fed divided on when to raise interest rates
A conflict is developing among Federal Reserve policymakers over the timing of future interest-rate increases, minutes of the last Federal Open Market Committee meeting show. One group expressed concern about a decline in inflation, while others warned of the dangers of further delaying rate increases.
CNBC (8/17),  The Wall Street Journal (tiered subscription model) (8/16),  The New York Times (free-article access for SmartBrief readers) (8/16) 
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Draghi reportedly won't discuss policy shift at US gathering
Draghi reportedly won't discuss policy shift at US gathering
Draghi (Raigo Pajula/AFP/Getty Images)
European Central Bank President Mario Draghi doesn't plan to unveil a change in monetary policy when he speaks at a gathering of central bankers in Jackson Hole, Wyo., two sources said. In recent weeks, expectations have grown that Draghi would use the occasion to launch a debate on how the ECB should revise its monetary policy in response to solid economic growth and declining unemployment.
Reuters (8/16),  Politico Pro (subscription required) (8/16) 
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