Simon Puleston Jones, FIA's head of Europe, says enhanced oversight of euro-denominated clearing would be preferable to forced relocation, which could affect firms located in continental Europe. The European Commission is expected to announce a recommendation on the issue next month, while Deutsche Boerse's Niels Tomm supports relocating euro-clearing to the eurozone because of cross-border equivalence regime "deficiencies."
The global exchange-traded fund and exchange-traded product industry outpaced the global hedge fund industry at the end of the first quarter by $847 billion, according to an ETFGI report. The ETF/ETP industry had $3.913 trillion in assets, compared with hedge funds' $3.066 trillion.
European regulators have called on Deutsche Bank to prepare contingency plans in case of a hard Brexit, in which Britain would leave the EU without a robust deal in place on future trade and cross-border banking, a source said. This eventuality would complicate derivatives dealings, which are predominantly cleared in London, and Deutsche Bank's high exposure to that sector would make it especially vulnerable.
Japan passed a law that will require high-frequency trading companies to register with regulators. Japan's Financial Services Agency had previously called for HFTs to register in an effort to improve risk management.
The Trump administration has no plans to break up big banks, Treasury Secretary Steven Mnuchin told the Senate banking committee Thursday. Breaking up Wall Street's biggest banks would negatively affect liquidity and the economy, he said.
European Central Bank official Benoit Coeure has warned of a disconnection between currently calm market conditions and brewing political turbulence, which he says could provoke a major market correction.
In this podcast, Craig Donohue, executive chairman and CEO of the Options Clearing Corp., offers insight into his return to the derivatives industry and the transformation of the post-trade realm. Donohue also discusses regulatory changes and market structure.
BNP Paribas has injected $63 million in Symphony, a communications platform that will ultimately replace email and voice systems. Symphony Communication Services has already attracted significant investments from a consortium of major financial institutions.
The China Securities Regulatory Commission is looking at opening futures contracts for a wide range of commodities and raw materials in an effort to encourage more foreign trade and investment, with individual Chinese exchanges also making similar plans. The move is seen as part of China's long-term plan to be more influential in global price setting.