The Market Information Data Analytics System, an interim database from the Securities and Exchange Commission used for monitoring swings in trading, has fallen short in providing accurate and timely data and has even broken down during trading surges, SEC documents indicate. A system that was to be installed last year is not expected to be operational until 2022. Meanwhile, market data has gotten more expensive, according to a study by SIFMA.
Mortgage rates have declined for the second consecutive week, while the coronavirus pandemic has led to dwindling applications and rocketing unemployment. The rate for a 30-year mortgage has averaged 3.33% this week, down from 3.5% last week, according to Freddie Mac.
Investment-grade issuers secured a record $260.7 billion from debt markets during March, Bank of America analysts say, despite the coronavirus pandemic. The analysts expect activity to continue this month, with companies issuing $150 billion to $200 billion in debt.
The compliance date for the Securities and Exchange Commission's Regulation Best Interest and the Customer Relationship Summary form will remain June 30, SEC Chairman Jay Clayton said. Firms that are concerned about meeting filing deadlines because of the coronavirus outbreak "should engage with us," Clayton said.
The Financial Stability Board, acting in its role as coordinator for the Group of 20, has requested that governments review coronavirus restrictions so crucial employees at financial firms can work on-site, rather than remotely. The FSB also says the deadline for shifting away from Libor has not changed, quashing speculation the deadline might be extended.
Japanese banks and businesses disagree on two competing benchmark rates as a replacement for Libor, and Japan's regulators have not shown a preference for either one. Instead, a committee of banks, brokers and businesses will make a recommendation.
Two nontransparent exchange-traded funds began trading in the US on Thursday and may test the market's appetite for actively managed ETF products. ETF analyst Eric Balchunas says "a lot of advisers just aren't looking at stock picking" amid the current volatility, although JPMorgan Chase analysts say mutual fund strategies could ultimately place as much as $7.2 trillion with such funds.
Murray Pozmanter, head of clearing agency services and global operations and client services at Depository Trust & Clearing Corp., explains how DTCC provides stability for the financial system. (See SIFMA Insights for more on DTCC's important role.)
Initial unemployment claims exceeded 6.6 million last week as businesses closed because of the coronavirus pandemic, adding to 3.3 million the previous week, according to the Labor Department. The US had never experienced this volume of layoffs in such a short period.
Financial services is a critical infrastructure sector. Through SIFMA, the industry has a robust infrastructure for dealing with incidents that can interrupt business and market functions. SIFMA's Business Continuity Planning (BCP) team continues to closely monitor the novel coronavirus (COVID-19) and its impact on our industry and the markets. The team's collection of guidance and resources for the industry, including updates from regulators, is available at sifma.org/bcp.
In light of recent market dislocations, SIFMA Research is tracking daily market metrics across equities, listed options and various fixed income and securitized products markets. Additionally, we show trends for 1Q 2020.
The capital markets perform a vital function, matching capital to ideas so those ideas can flourish into successful enterprises, creating millions of jobs and fueling economic growth. SIFMA exists to advocate that America's capital markets operate effectively and efficiently, to the benefit of all market participants. Visit SIFMA's website to learn more.
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