June's consumer price index matched May's 2.4%, which was a one-year low, according to the UK's Office for National Statistics, reducing the possibility of an interest-rate rise in August. Higher inflation had been expected in June due to increasing petrol costs, said the ONS.
The People's Bank of China is offering Chinese banks money, requesting that large lenders take the lead in executing plans to lend to small businesses at lower cost, after new credit as a percentage of GDP reportedly neared a three-year low in June. Commercial banks will receive funds from PBOC's Medium-term Lending Facility.
Daniel Gorfine, director of the Commodity Futures Trading Commission's fintech initiative LabCFTC, told a US House Committee on Agriculture hearing there should not be "hasty regulatory pronouncements" on cryptocurrencies and digital assets. Gorfine said regulators "need to be sure that we are thoughtful in our approach and do not steer or impede the development of this area of innovation."
The buy side has discovered that regulation and cost savings have made clearing of inflation swaps, single-name credit default swaps and repo more attractive in terms of liquidity. "There has been a mentality shift in clearing derivatives," said Kieron Smith, deputy head of prime services and financing at BNP Paribas.
The UK Financial Conduct Authority's Nausicaa Delfas said banks should prepare for a "hard Brexit" in the event that no transition deal is ratified. "With eight months until we exit the European Union in March 2019, it is important we all -- regulators and industry -- continue to plan for a range of scenarios," Delfas told a TheCityUK event.
The US Federal Reserve should replace its "mono-model" approach to calculate average capital requirements for the Comprehensive Capital Analysis and Review with a multiple-scenario model to avoid unnecessary capital charges on banks, an expert told a House Financial Services Committee hearing. Separately, Morgan Stanley CEO James Gorman told analysts the Fed stress tests have become "increasingly more demanding" each year.
The Bank of England expects to have Term Sonia Reference Rates ready by the second half of next year, with the goal of tackling challenges the industry might face when transitioning from the London Interbank Offered Rate to the Sterling Overnight Index Average benchmark. The bank said that in some cases Sonia could not substitute for Libor, so the TSRRs could play an important role in the transition to Sonia.
Draft rules for the trading of two-year Chinese government bond futures have been posted on the China Financial Futures Exchange website. CFFEX is seeking public suggestions for amendments to the rules until July 24.
Trading Technologies is partnering with a number of cryptocurrency exchanges, including Coinfloor, to help monitor for market manipulation and other unusual trading activity.
Singapore Exchange is seeking public feedback on proposed changes to its clearing rules for derivatives, which include adding an auction protocol for liquidating a defaulted member's positions in exchange-traded derivatives and over-the-counter commodities contracts. SGX wants to include default sub-waterfalls for auction losses that would be folded into the existing waterfall.