The US Federal Reserve should ease its rule requiring a bank to collect initial margin from an affiliate when the two institutions trade swaps, said US Commodity Futures Trading Commission Chairman J. Christopher Giancarlo. The rule puts US financial firms "at a competitive disadvantage in operating in global markets", he said.
Countries are creating a hodgepodge of regulations governing cryptocurrencies. China has been most aggressive while Europe on the whole has taken a lighter approach.
China's National Development and Reform Commission says it is, as planned, tightening oversight of assets held by companies seeking to sell bonds, and adding regulations on bond sales by public-private partnership projects. The moves are seen as part of the national policy to curb excessive borrowing, but market participants say they will slow issuances and increase costs for borrowers.
Asian-Pacific markets were mixed Thursday after the US Federal Reserve raised its key interest rate by one-quarter percentage point. Japan's Nikkei 225 Index gained 1%; Hong Kong's Hang Seng Index fell 0.6%; Australia's S&P/ASX 200 Index declined 0.2%; China's Shanghai Composite Index lost 0.5%; South Korea's KOSPI Index rose 0.4% and India's SENSEX Index was down 0.4%.
Authorities in France told former President Nicolas Sarkozy on Wednesday that they formally consider him a suspect in an investigation into whether the late Libyan leader Muammar Gaddafi gave money to his 2007 election campaign. Sarkozy was placed under judicial supervision after his release from police custody.
The European Commission proposed legislation Wednesday that would impose a 3% tax on the revenues of multinational online companies that come from paid subscriptions, online advertising and the commercial use of personal data within the EU. The tax would apply to companies with worldwide revenue greater than €750 million and taxable revenues within the EU greater than €50 million, and the ministers said they would provide an update in 2019.
China appointed Guo Shuqing to run the China Banking and Insurance Regulatory Commission that was recently formed by combining the country's banking and insurance regulatory agencies, a source said. Guo previously headed the banking regulator, which imposed record fines on financial firms for misconduct.
The proposed Pan-European Personal Pensions should be approved by national authorities rather than the European Insurance and Occupational Pensions Authority, said Brian Hayes, an Irish member of the European People's Party. The pensions still would be governed by criteria that are consistent throughout the EU, he noted.
The US House Financial Services Committee has advanced a bill to make the Federal Reserve the primary regulator of the Volcker rule. The measure would replace the five entities currently regulating the Volcker rule and lower the capital requirements banks need to meet leverage restrictions.
IndexIQ has filed with the Securities and Exchange Commission for approval of two exchange-traded funds applying smart-beta strategies. If approved, the IQ 500 International ETF will focus on 23 non-US developed markets, while the IQ 500 ETF will target US-based investments.