Commodity Futures Trading Commission Chairman Timothy Massad said Friday that the swaps industry is partially responsible for the lack of clear, accurate data on individual transactions. "We expected the industry to develop standardized terms," Massad said. "That, unfortunately, did not happen."
The EU plans to deviate from the Basel Committee on Banking Supervision's bank capital rules, easing requirements for smaller banks and encouraging investment, said Jonathan Hill, financial-services commissioner for the EU. "I'd like to take a more proportionate approach to smaller banks and take a close look at whether it really makes sense to have the same compliance requirements for all banks and all business models," Hill said. European Banking Authority Chairman Andrea Enria also said capital requirements and reporting standards that govern major banks shouldn't be applied to small banks.
The Financial Industry Regulatory Authority is pressing ahead with a crackdown on brokers who fail to give clients the discounts on unit investment trust sales charges to which they are entitled. The regulator ordered three firms to pay a total of $1.2 million in fines and restitution.
The successful move to negative interest rates by central banks around the world may lead the Federal Reserve to consider the policy in case of a crisis, analysts at Bank of America and JPMorgan Chase say. About 13% of traders expect the Fed to adopt negative rates by the end of 2017, Bloomberg data indicate.
The Commodity Futures Trading Commission has reportedly spent more on administrative costs than it has paid out in bounties for its whistleblower program, which started in 2011. The agency has paid out only two awards totaling $530,000 and still has $268 million earmarked for the program -- more than the agency’s annual budget. CFTC launched a website last month to increase awareness of the program. "The program will continue onward," said CFTC's Christopher Ehrman. "We'll get what we get and hope for the best."
International Monetary Fund research suggests that bond mutual funds' increasing use of derivatives could lead to a crash because of over-leveraging. It calls on fund managers to increase transparency.
The European Money Markets Institute's struggle to increase the number of banks that contribute to the Euro Interbank Offered Rate to 40 from 23 might force the institute to support proposed European legislative reforms requiring mandatory contributions for critical benchmarks. Critics say banks "get nothing" out of the submissions. "We hope we don't have to use this mandatory contribution provision," said Andrea Fernandez Carnicero of EMMI.
The Chicago Stock Exchange said it has agreed to be bought by a group of investors led by China's Chongqing Casin Enterprise Group. The exchange's board has approved the sale, but regulatory approvals will be required before the transaction closes. The deal is expected to be completed by year's end.
Joseph Tracy of the Federal Reserve Bank of New York has been chosen to become chairman of the Swiss-based Regulatory Oversight Committee, which is leading the effort to assign legal-entity identifiers to participants in global financial markets. Tracy said the policy framework for collecting data on legal-entity parent companies will be completed in the next few weeks.
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