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.
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.
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."
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.
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.
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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.
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.
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.
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.
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!