In a testimony on behalf of SIFMA, Brett Paschke of William Blair has told a hearing of a House Financial Services subcommittee that action must be taken to ensure the vitality of the nation's public capital markets, referring to a report produced jointly by SIFMA and other entities, titled "Expanding the On-Ramp: Recommendations to Help More Companies Go and Stay Public," which outlines strategies to help achieve the goal. The hearing also debated a proposed bill to enable the establishment of venture exchanges, which would allow smaller companies to trade their liquidity on a single venture exchange, and empower the Securities and Exchange Commission to decide whether exchange operators are sufficiently qualified.
The Federal Reserve is expected to respond to legislation that revises aspects of the Dodd-Frank Act by adjusting requirements for regional banks, while keeping power to supervise them through stress tests. Chairman Jerome Powell says he wants to subject regional banks to "meaningful, strong, regular, periodic stress tests."
The first phases of noncleared initial-margin rules have reduced the size of the noncleared derivatives market through incentives to centrally clear trades, rather than margining them bilaterally. The initial-margin experience in Phases 3 to 5 is likely to be different because smaller budgets might lead to "greater compliance and technology challenges," writes Mark Demo of AcadiaSoft.
Film producer Harvey Weinstein turned himself in to New York City police today to face rape charges, officials said. A bail package negotiated in advance will require Weinstein to put up $1 million in cash and wear a monitoring device.
The House Appropriations Committee voted to authorize federal funding for the Gateway Tunnel project and a new Portal Bridge crossing the Hackensack River in a spending bill that is now headed to the House floor. President Donald Trump has spoken out against previous proposals for putting federal money into the Gateway Tunnel project.
Philadelphia Federal Reserve President Patrick Harker indicated the Fed may raise rates three times this year and another three times next year, and then pause. Harker added that we could see a fourth rate increase in 2018 if inflation accelerates, but said he's not seeing evidence of that.
Comcast is preparing a $60 billion cash offer for entertainment assets of 21st Century Fox, topping Disney's $52.4 billion all-stock bid. Activist investor Christopher Hohn has urged Fox owner Rupert Murdoch to fairly consider Comcast's offer and to ignore a potential tax advantage from Disney's bid.
The US has not yet decided whether to lift a ban on Chinese telecommunication firm ZTE, Secretary of State Mike Pompeo says. A suggestion that President Donald Trump might relax sanctions on ZTE has met resistance from a legislative committee, which has voted overwhelmingly for sanctions to stay.
The S&P 500 has capacity to pass 3,000 points by early 2019, says technical analyst Peter Lee, who has set a target of 3,109. Lee acknowledges a long rally is reaching maturity but says a general uptrend is still in place, though he cautions the index might struggle to exceed his target, which could prompt a correction.
Strife within the UK government regarding its Brexit policy is adversely affecting the pound, foreign exchange strategist Viraj Patel says, as the currency continues to lose against the US dollar and the euro. "These fresh political hits could keep sentiment for GBP dented in the near term," Patel says.