An agreement between the US and the EU exempting insurers and reinsurers in both jurisdictions from some local requirements, including minimum levels of collateral, was endorsed by EU finance ministers. The action clears the way for the European Commission and European Parliament to move forward with the agreement.
Quantlab Financial's Cameron Smith, KCG Holdings' Daniel Coleman and Convergex Group's Eric Noll are abandoning high-frequency trading for new ventures as mergers and low market volatility put pressure on the sector.
Kazakhstan's Astana International Exchange is striving to attract global investors as the Shanghai Stock Exchange and Nasdaq discuss buying stakes in the bourse, which plans to launch this year.
Asian-Pacific stock markets were mixed Tuesday, with exchanges in China and Hong Kong closed for a holiday. Japan's Nikkei 225 was flat; Australia's S&P/ASX 200 rose 0.2%; South Korea's Kospi gave up 0.4%; and India's Sensex was up 0.2%.
Japan posted a 3.2% year-over-year gain in retail sales in April, the Ministry of Economy, Trade and Industry said. The median forecast of economists surveyed by Market News International called for a 2.3% increase.
In their search for ways to keep up with technology shaping their industry, brokers are investing in financial-technology startups. Edward Jones is putting hundreds of thousands of dollars into a venture fund investing in startups, while Wells Fargo is taking ideas from its startup accelerator and developing prototypes of services in its innovation lab.
Pension funds and other institutional investors may find it difficult to comply with a little-discussed provision in the Commodity Futures Trading Commission's proposed rules for position limits on physical commodities. The proposal includes an aggregation limit of 10% of trading control, without regard to whether the speculative trading is done directly by the asset owner or through external managers.
Other than changes to retirement programs for federal employees and revised premiums for multiemployer pension funds, the budget proposal President Donald Trump sent to Congress is silent about future proposals that could affect retirement savings. Treasury Secretary Steven Mnuchin told the Senate Finance Committee that a lot of details remain to be worked out because the president isn't ready to present a "full-blown tax-reform plan."
A line item in President Donald Trump's budget would eliminate the Securities and Exchange Commission's reserve fund, limiting the agency's budget for technology used to identify and punish insider traders.