Jim Allen, CFA, head of Americas capital markets policy at CFA Institute, and Eric Boess, CFA, director and global head of derivatives at RCM Allianz Global Investors, discuss the impact of derivatives reform on global derivatives trading.
Of the shift fromover-the-counter (OTC) derivatives trades onto exchange-like structures, “The general idea to make markets more transparent and hence more stable is absolutely right. The problem is how you do it, and what you achieve on the way there might not be exactly only positive.”
The European Central Bank says banks relocating from the UK because of Brexit will receive regulatory leniency as they set up operations, including "more time for banks to meet certain supervisory expectations regarding their local risk management capabilities and governance structures, and to move to an adequate and balanced business organization within the euro area." Bloomberg Professional Services (17 May.)
House and Senate committees have approved bills to intensify scrutiny of foreign investment in US firms, in an effort to restrict Chinese acquisition of sensitive US technology. The measures would broaden the authority of the Committee on Foreign Investment in the US. Reuters (22 May.)
Chinese smartphone-maker ZTE estimates losses of 20 billion yuan or more because of a US ban, sources say. US President Donald Trump says he is considering alternatives to an outright ban, including a fine of more than $1 billion. Bloomberg (tiered subscription model) (22 May.)
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