The coronavirus sent trading revenues in January down across international financial centers, with the Asia Pacific region seeing higher earnings fall to 20% from 43% in December while 30% of Europe's traders saw higher revenue compared to 43% and traders in North America saw higher earnings drop from 49% to 39%, according to research firm Acuiti. The data also found that 42% of non-bank Futures Commission Merchants saw higher earnings in Jan. compared to Dec.'s 15%.
Stefaan De Rynck, an adviser to EU chief trade negotiator Michel Barnier, says Britain will receive no special treatment when the EU assesses its financial rules as a non-EU "third country" to determine access to the bloc's financial markets. De Rynck told the London School of Economics that "the EU will apply the existing equivalence framework to the UK in much the same way we apply to other third countries."
Recruitment firms say the coronavirus outbreak has caused financial firms in Singapore and Hong Kong to delay their hiring plans due to travel restrictions and quarantines being put in place. Many regional banks prefer to meet their candidates in person, rather than conducting interviews by video conference or phone, the firms say.
The International Monetary Fund has warned Group of 20 finance ministers and central bankers the coronavirus outbreak could threaten a "highly fragile" recovery expected for the global economy. "The recovery could be derailed by a sharp rise in risk premia, triggered for example by a re-escalation of trade tensions, or a further spread of the coronavirus," the IMF says.
The working group on euro risk-free rates has issued a report calling on firms to replace EONIA products with €STR products and reduce their EONIA-linked legacy exposures as soon as possible. "Market participants should still be able to obtain an EONIA price on request, but establishing €STR-based pricing as the default as soon as possible could benefit the transition process," notes the report.
Financial Stability Board Chairman Randal Quarles has told Group of 20 finance ministers and central bankers the speed of cryptocurrency innovation means regulators must write rules quickly or risk falling behind. FSB members "are resolved to quicken the pace of developing the necessary regulatory and supervisory responses to these new instruments," Quarles says.
Despite the recent proposal of position limit rules that are broad in scope, former CFTC commissioner Tom Erickson notes the latest proposal currently out for public comment is carefully constructed to carefully constructed to carve out end-users.
European Commission Executive Vice-President Valdis Dombrovskis said in a memo that the EU still lacks the details needed to make a decision of Libra, a digital currency with ties to Facebook. "As Libra is still a project, and thereby a moving target, the information provided remains insufficient for determining the precise nature of Libra and, by extension, its relation with existing EU law," said Dombrovskis.
The International Swaps and Derivatives Association has published a list of 59 functions that swap firms may need to accomplish in order to comply with the uncleared margin rules. "The list provides suggested initial guidance that will require further opinion, prioritisation and collaboration with both internal and external resources," ISDA notes.
Trade surveillance provider Eventus Systems has raised more than $10 million in a Series A funding round led by Jump Capital and LiveOak Venture Partners. Eventus Systems CEO Travis Schwab says the funding will be used to further develop its technology and expand new client growth across Europe and Asia.
The FIA Law & Compliance Division presents the 42nd Annual Law & Compliance Conference on the Regulation of Futures, Derivatives and OTC Products (L&C 2020), April 29 - May 1 in Washington, DC. This conference delivers tailored sessions from leading experts on regulatory developments and their practical implications, professional development opportunities and ample networking activities. Registration will be opening soon. Visit our website for more information and details about this upcoming event!