Regulators reportedly to propose Volcker revamp | CFTC pursues firms that don't flag suspected spoofing | Deutsche Boerse: Prepare for multiple Brexit scenarios
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May 16, 2018
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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) 
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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) 
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Brexit
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) 
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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) 
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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) 
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Now available! Market Conduct Fundamentals
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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) 
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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) 
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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) 
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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) 
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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) 
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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!
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