Examinations by the Financial Industry Regulatory Authority will look at compliance if the Securities and Exchange Commission adopts a best-interest rule for broker-dealers, FINRA President and CEO Robert Cook says. "That said, it's not our rule, so exactly what the rule means and how it gets overseen is something we'll be working closely with the SEC on just as we do for other rules that we monitor for compliance," he says.
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PIMCO executive Mihir Worah has told delegates at the Fixed Income Market Structure Seminar hosted by SIFMA that bonds have been a reliable hedge against volatility in the past nine years of low inflation, but now that the balance of risk is changing, their effectiveness as a hedge against stocks is waning. A number of advisors and planners have commented they are trimming their long positions in bonds.
A sell-off in corporate bonds has led to the third-worst 100-day returns since 2000 for US corporate debt, according to JPMorgan Chase data. However, JPMorgan strategists say results at year-end will not be as poor as those of the past 100 days because demand from pension funds and foreign investors for long-dated notes remains strong.
Stacey Cunningham will replace Thomas Farley as president of the New York Stock Exchange on Friday, a spokeswoman said. Cunningham, who serves as chief operating officer, will be the exchange's first female president.
Sony says subsidiary Sony Corporation of America has agreed to pay $1.9 billion for a 60.2% stake in EMI Music Publishing held by a consortium led by Abu Dhabi's Mubadala Investment. Sony also expects to pay $400 million to other entities with interests in EMI, giving Sony an indirect equity interest of approximately 90% if the transaction is finalized.
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The North American Securities Administrators Association has completed a sweep of enforcement actions directed at initial coin offerings and other cryptocurrency transactions. "Operation Cryptosweep" included 35 ongoing or completed enforcement actions, as well as investigations and inquiries, the association says.
Data show hedge funds' net-long position on Brent crude -- which rose above $80 per barrel, a level not reached since 2014 -- declined for the fifth straight week for the week ended May 15. Meanwhile, hedge funds' net-long position for West Texas Intermediate crude experienced its biggest drop in six weeks as WTI and Brent are both up 18% so far in 2018.
A Northern Trust survey of the Asia-Pacific region reveals widespread expectations that use of artificial intelligence will become standard practice throughout the financial industry within five years. This contrasts with attitudes in Europe, where a SimCorp survey finds only 15% of investment chiefs at buy-side firms consider AI deployment a priority for 2018.
Chinese and US negotiators have agreed on an outline of a compromise under which the US lifts a ban on domestic companies' sales to Chinese telecommunication firm ZTE, sources say. As an alternative, ZTE reportedly must revamp management and might have to pay large fines.
SIFMA has partnered with the Municipal Analysts Group of New York (MAGNY) and GASB to provide an educational seminar, May 23 in NYC, on the rules updated for 2018 that state and local governments follow when accounting for and reporting their finances. Sessions include: the basics from the perspective of the financial statement analyst; how the accounting standards affect the information that analysts receive; and significant new changes to government financial reports.
Robotics process automation (RPA) can be an improvement over more basic technologies but is not as advanced as artificial intelligence or machine learning. Indeed, RPA is making fintech solutions attainable for firms of all sizes and in a timely manner. Inside this note from SIFMA Insights, we analyze what RPA is and what it is not, and identify opportunities for RPA in financial services. With results from an anonymous survey of our members, this report was published as we gathered in Phoenix for SIFMA's 45th annual Operations Conference & Exhibition.