BNP Paribas has overtaken Barclays as the leading arranger of European government-bond syndications, holding 9.3% market share, compared with 5.9% in 2015. Barclays, which held the top spot in 2015 and 2016, has slid to fifth place, with market share dropping to 7.3% from more than 10%.
Financial institutions should not assume they will get a pass on enforcement when Europe's revised Markets in Financial Instruments Directive goes live in January, a Deloitte report warns. "This is especially true in areas which are likely to be high priority for regulators, such as transaction reporting, best execution, investor protection, costs and charges transparency, and data protection," the report says.
The Basel Committee on Banking Supervision has released a quantitative impact study of Basel III capital requirements, which shows a diversity of additional financial burden placed on banks, particularly in Europe. The average requirement is expected to fall by 1.4%, but some entities will see a 27.8% decline, while others will face a 43.4% increase, according to the study.
Asian and US firms are likely to find not having a legal-entity identifier when Europe's revised Markets in Financial Instruments Directive takes effect means missing trades for noncompliance, panellists said at a derivatives conference. However, some panellists questioned whether the effort is worth it if firms transact with only a single European client.
The People's Bank of China objects to parts of an International Monetary Fund report on the country's financial stability and anti-money-laundering measures but says it will adopt many of the report's recommendations. The PBOC objects to the IMF's conclusions on Chinese stress tests.
The Federal Reserve has proposed changing annual stress tests to provide banks more information on how their portfolios might fare during market shocks. "This enhanced transparency will bolster the credibility of our stress tests and help the public better evaluate the results," said Randal Quarles, vice chairman for supervision.
Bitcoin reached a record high of more than $19,000 on the Coinbase exchange Thursday before dropping to slightly above $15,000. Major exchanges plan to debut bitcoin futures, accelerating the pace of gains.
While broker-dealers have made great strides in establishing written policies and procedures for protecting investor information during the past two years, cybersecurity remains a major threat, the Financial Industry Regulatory Authority reported. Firms are still vulnerable to phishing and ransomware attacks and must address access management by implementing systems to log, monitor and supervise employee activity to better detect anomalies, FINRA said.
Asian-Pacific stock markets gained Friday, led by benchmark indexes in Japan and Hong Kong. Japan's Nikkei 225 surged 1.4%; Hong Kong's Hang Seng Index jumped 1.3%; Australia's S&P/ASX 200 added 0.3%; China's Shanghai Composite rose 0.6%; South Korea's Kospi was up 0.1%; and India's Sensex rose 0.9%.
Commodity Futures Trading Commission Chairman J. Christopher Giancarlo plans to assign staff from the divisions of enforcement, swaps dealer and intermediary oversight, and clearing and risk to monitor bitcoin futures trading. "There will be no reduction of responsibilities for our market-oversight and enforcement teams in order to account for this new responsibility," Giancarlo said.