Financial Markets
Top stories summarized by our editors
6/23/2017

Bank of France Governor Francois Villeroy de Galhau has voiced support for the European Commission's proposal to shift oversight of euro-denominated derivatives clearing to the EU from London after Brexit. He says it would not be viable for London to continue its dominance of the activity, although he adds that further clarification of the proposal is needed.

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European Commission
6/23/2017

Regulators should re-evaluate requirements placed on bank boards, says Treasury Secretary Steven Mnuchin, who, as head of the Financial Stability Oversight Council, can order such a review. Boards should be concerned with strategy rather than everyday management, a Treasury Department report on post-crisis regulation says.

6/23/2017

British Prime Minister Theresa May has told a European Council summit the 3 million EU citizens residing in the UK can stay after Brexit, a move German Chancellor Angela Merkel calls a good start. However, the offer depends on EU states giving the same protection to UK citizens, May says.

6/23/2017

A judge on Brazil's Federal Supreme Court has sent to the highest-ranking prosecutor the results of an investigation into accusations that President Michel Temer accepted bribes. The allegations were made in testimony from members of the family that owns meatpacker JBS, in which they said they paid Temer $4.6 million to win government contracts, obtain free loans from a state-run development bank and resolve tax disputes.

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Reuters
6/23/2017

The Alternative Reference Rates Committee, which is made up of major international banks, chose a Treasurys-backed repurchase agreement rate as an alternative to the London Interbank Offered Rate. "I am confident the new reference rate chosen today by the Alternative Reference Rates Committee is based on a deep and actively traded market and will be highly robust," said Jerome Powell of the Federal Reserve.

6/23/2017

France's market regulator said the European Securities and Markets Authority needs to be given more governance and oversight powers, and suggested a number of strategies to facilitate the changes. The additional powers would enable ESMA to make binding decisions on the relocation of central counterparties within the EU.

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The Trade (UK)
6/23/2017

Strategists at Japanese bank Nomura say that Italy's political risk is underestimated and cite other factors that could exert significant downward pressure on government bond yields.

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Japanese bank Nomura
6/23/2017

Orders submitted to the UK's manufacturers hit the highest level in 29 years as the falling pound and recovering global economy boost demand, trade group CBI said. Producers of chemicals, food, beverages and tobacco products received the most orders.

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The Guardian (London)
6/23/2017

Market participants in the US are raising concerns about the European Commission's proposal to increase supervision of clearing of euro-denominated financial contracts after Brexit. US dealers have told the Commodity Futures Trading Commission that the situation could result in higher margining costs and could cause other issues.

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European Commission, EU
6/23/2017

The final decision on which countries will get to host the European Banking Authority and the European Medicines Agency when they leave London due to Brexit will be made by an EU vote in November. Germany and France denied a report that they had secretly agreed to divide up the agencies between themselves, with the medicines agency going to France and the banking authority to Germany.