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Tag Archives: Bank of England

JLN Financials: Residual Interest Rule Cometh; Tradeweb Applies With CFTC to Offer First Credit-Swap Trading; A new world order and China’s key role Financials,Newsletter

First Impressions Residual Interest Rule ComethJim Kharouf and Doug Ashburn – John Lothian News The Commodity Futures Trading Commission took up the issue of enhanced customer protections today, finalizing a rule that would require futures commission merchants (FCMs) to adopt new risk management programs that relate to operations, capital and customers fund segregation. The new rule, passed this morning, will also require FCMs to keep so-called “residual interest in customer accounts.” The CFTC rule says FCMs must maintain residual interest “that is at least equal to its customers’ aggregate under margined amounts for the prior trade date by the point…

John Lothian Newsletter: Aquis to shake up equity trading model; LCH.Clearnet in ‘major’ year-end IT outage; Cracks appear in early FTT talks John Lothian Newsletter,Newsletter

New trading venue Aquis Exchange plans an unusual fee structure as part of its strategy to compete in Europe. An outage at clearing house LCH.Clearnet late last year turned out to be a lot more than that, as the Bank of England reveals significant risk to UK payment systems. The contentious European financial transaction tax appears to be under heavy water pressure, and early speculation suggests that the final product, if any, will be significantly diluted. Andy Yemma of Intermarket Communications debuts as this week’s JLN guest editor.

John Lothian Newsletter: Six buys Oslo Clearing for $32m; Chile’s BEC set to list Nasdaq stocks; BoE’s Haldane says technology may trigger UK banking revolution John Lothian Newsletter,Newsletter

Swiss exchange operator SIX Group reaches out to buy Norwegian clearing house Oslo Clearing, giving it access to clearing operations as regulatory change increases the importance of that sector. Nasdaq OMX is set to activate a year-old listing agreement with Chilean exchange BEC. Bank of England’s Andrew Haldane suggests that a banking revolution may shortly occur as technology changes the way business is conducted; no word on whether the revolution will include upgrading the ethical practices of the industry.

John Lothian Newsletter: Schapiro stepping down at SEC, Walter to step in; Britain names Canadian to head Bank of England; Spanish Futures Trading Resumes After BME Technical Fault John Lothian Newsletter,Newsletter

As expected, Mary Schapiro announces her departure from the SEC, and Elisse Walter is tapped to take her place. Canada’s Mark Carney heads to Britain to take the head chair at the Bank of England. Spanish futures exchange MEFF shut down for several hours today; a “connectivity” issue was blamed, and trading has now resumed. The second installment in JLN’s Restoring Customer Confidence series has arrived: Eurex’s Byron Baldwin talks about the exchange’s flexible segregated account services.

John Lothian Newsletter: UK report urges rules to limit HFT risks; CME Challenger Struggles In Largest U.S. Derivatives Market; SEC adopts new risk mgmt rules for clearing agencies John Lothian Newsletter,Newsletter

A UK report, two years in the making, makes several recommendations on how to best limit the risks involved with high-frequency trading systems. The ELX exchange, launched in 2009 to compete against CME Group, is struggling with evaporating volumes as customers walk away from core interest rate products. The SEC adopts rules to regulate risk management practices at clearing companies.

LIBOR Scandal News (7/5/12 AM) Blog,Financials,Regulation

A roundup of the latest news on the LIBOR scandal. Lining Up Libor AlternativesBy KATY BURNE And MATT PHILLIPS – Dow JonesThe hunt for a credible replacement for Libor—long the most accepted market measure of short-term interest-rate moves—is heating up. Banks are testing alternatives to the London interbank offered rate, which is coming under increased scrutiny after regulators accused banks of manipulating the rate. Regulators on Libor Probe Said to Seek More TimeBy Joshua Gallu – BloombergBarclays Plc (BARC)’s settlement of about $451 million with U.S. and U.K. regulators last week offered the first glimpse of what banks may have…