The pound's recent rebound from a low against the dollar is heading toward a horizontal line of resistance and a descending trend line, writes technical analyst Blake Morrow. With an overbought relative strength index also a factor, a breakthrough could take the currency as high as 1.2800, although other analyses deem a downturn more likely.
Many economists polled by Reuters expect the European Central Bank to decrease interest rates at a meeting in September. Almost 40% of respondents expect the ECB to restart bond buying this year, up from 15% in a survey last month.
The EU faces some hard choices about its future relationship with the City of London as it looks to complete its capital markets union, say the authors of a policy brief from the Centre for European Reform. Former European Commission senior official Jonathan Faull and attorney Simon Gleeson write that "the EU will need to decide whether to keep London at arm's length while pursuing an inward-looking strategy, or instead open up its market to London and the rest of the world".
The European Securities and Markets Authority's review of whether unbundling of trading and research spending has benefited investors could be the first step toward relaxation of the requirement, Jack Schickler writes. Many asset managers have found the rule difficult to implement.
The Financial Industry Regulatory Authority plans to refine its machine learning algorithms for market surveillance. FINRA chief information officer Steve Randich says the move will free up its human surveillance staff to focus on more complex instances of manipulation.
Simplifying the text concerning derivatives markets under Europe's revised Markets in Financial Instruments Directive would give regulators more flexibility on a case-by-case basis when considering pre-trade waivers, says ION Markets senior regulatory adviser Christian Voigt. The change would allow regulators "to implement a waiver regime which promotes greater transparency and enhances liquidity at the same time," says Voigt.
CME Group plans to make targeted, incremental improvements to its S&P equity options compression service. CME global head of equity index products Tim McCourt says working to improve the S&P options' compression "is more beneficial than introducing compression on the Nasdaq, Russell or Dow at this time."
RJ O'Brien has tapped Simon Prangnell, formerly of Coex Partners, to be managing director of its new Paris-based arm, RJ O'Brien France. Prangnell was a key figure in building up Coex's French branch over the last four years.
- Page 1