Regulators reportedly to propose Volcker revamp | CFTC pursues firms that don't flag suspected spoofing | Deutsche Boerse: Prepare for multiple Brexit scenarios
May 16, 2018
CONNECT WITH FIA LinkedInFacebookTwitter
FIA SmartBrief
FIA's Daily Summary for Derivatives Industry Professionals
Top Stories
Regulators reportedly to propose Volcker revamp
Five regulators are set to propose changes to the Volcker rule that include reducing the burden on banks to prove short-term trades do not break the rule, sources say. The proposal reportedly would also change how trading activity is deemed hedging or market making.
Bloomberg (tiered subscription model) (5/15),  The Wall Street Journal (tiered subscription model) (5/15) 
LinkedIn Twitter Facebook Google+ Email
CFTC pursues firms that don't flag suspected spoofing
Commodity Futures Trading Commission member Rostin Behnam says the agency can pursue spoofing cases against firms that fail to adequately supervise employees, referencing a 2017 case on US Treasury futures involving Citigroup traders. "To identify infractions by means of technology but not to follow up on them with human interaction, that raises a lot of concerns," Behnam says.
Risk (subscription required) (5/16) 
LinkedIn Twitter Facebook Google+ Email
Deutsche Boerse: Prepare for multiple Brexit scenarios
Customers should prepare for multiple Brexit scenarios, particularly regarding the not-yet-decided cross-border legal framework, Deutsche Boerse Chief Regulatory Officer Alexandra Hachmeister says. The company has created a Brexit transition team, saying it strives "to take all necessary measures to mitigate the impact on existing business relations."
Futures & Options World (subscription required) (5/15) 
LinkedIn Twitter Facebook Google+ Email
Regulatory Roundup
House plans Tuesday vote on bill to ease bank rules
The House is scheduled to vote Tuesday on a bill that would increase the threshold at which banks are deemed systemically risky and would exempt banks from a proprietary-trading ban if they have less than $10 billion in assets. The bill heads to President Donald Trump if passed, having cleared the Senate.
Reuters (5/15),  Bloomberg (tiered subscription model) (5/15) 
LinkedIn Twitter Facebook Google+ Email
ECB official: Swaps using Euribor might remain for years
The European Central Bank's Cornelia Holthausen says that despite a move by UK and US regulators to move legacy swaps to risk-free rates, euro interest-rate swaps might continue referencing the Euro Interbank Offered Rate for "some more years" if changes succeed.
Risk (subscription required) (5/16) 
LinkedIn Twitter Facebook Google+ Email
Now available! Market Conduct Fundamentals
FIA Training online courses help market participants better understand the way markets work and the rules that protect them. The Market Conduct Fundamentals course provides a high-level overview of prohibited and disruptive practices and exchange requirements in the futures and options industry. LEARN MORE!
Industry Developments
Marex Spectron uses satellite data for quant research
Marex Spectron is upgrading quantitative-research capabilities by adding satellite imagery and video analytics supplied by Earth-i, focusing initially on the copper market. "Traders today are overwhelmed with data and information, so the challenge is how to filter and convert that into something relevant," says Guy Wolf of Marex Spectron.
The Trade (UK) (5/15) 
LinkedIn Twitter Facebook Google+ Email
CME to study client demand for ether futures
CME Group has no immediate plan to launch ether futures but will gauge client demand, after introducing an index tracking prices, says Tim McCourt, head of equity products.
Bloomberg (tiered subscription model) (5/15) 
LinkedIn Twitter Facebook Google+ Email
Electronic Trading News
Coinbase to upgrade services to attract HFTs
Coinbase plans to introduce tools and to upgrade trading technology, including adding digital custodial services, risk management and the ability to match buy and sell cryptocurrency orders, to attract institutional investors, hedge funds and high-frequency traders. "By allowing institutions and individuals to trade on the same platform, we get tighter spreads, deeper liquidity and better price discovery," says Adam White of Coinbase.
Reuters (5/15),  Bloomberg (tiered subscription model) (5/15),  Financial Times (subscription required) (5/15),  The Wall Street Journal (tiered subscription model) (5/15) 
LinkedIn Twitter Facebook Google+ Email
Financial Technology
Brainard: No need for Fed-issued cryptocurrency
Brainard: No need for Fed-issued cryptocurrency
Brainard (Daniel Roland/AFP/Getty Images)
Federal Reserve Governor Lael Brainard says she sees "no compelling demonstrated need for a Fed-issued digital currency." The impressiveness of cryptocurrency innovation is accompanied by challenges, Brainard says, but cryptocurrencies do not pose a large stability risk for the financial system.
Reuters (5/15) 
LinkedIn Twitter Facebook Google+ Email
Commodities and Managed Futures
Shanghai exchange works on physical-commodity platform
The Shanghai Futures Exchange plans to introduce China's first real-time trading platform for physical commodities, offering premiums and discounts for cash-settled futures in a bid to tap the global futures market while making trading more transparent. No date has been set for the launch.
Reuters (5/15) 
LinkedIn Twitter Facebook Google+ Email
FIA News
June 7: Angelo LaSpina Golf Outing
The FIA Operations Americas Division is hosting its annual Angelo LaSpina Golf Outing on June 7. Proceeds from the outing will go to the FIA Operations Americas Division Scholarship program for children of members. Meet the division at the beautiful Richmond County Country Club in Staten Island, N.Y. Register today!
LinkedIn Twitter Facebook Google+ Email
Learn more about FIA:
Advocacy | Events | Resources
Affiliates | Membership | Media | About
A guide, on finding a man who has lost his way, brings him back to the right path -- he does not mock and jeer at him.
LinkedIn Twitter Facebook Google+ Email
Sign Up
SmartBrief offers 200+ newsletters
Learn more about the SmartBrief audience
Subscriber Tools:
Contact Us:
Advertising  -  Abiy Bekele
P: 919.931.5915
Mailing Address:
SmartBrief, Inc.®, 555 11th ST NW, Suite 600, Washington, DC 20004
© 1999-2018 SmartBrief, Inc.®
Privacy policy |  Legal Information