The iShares Expanded Tech-Software Sector exchange-traded fund is recovering from a brief correction and is reaching a high, with a gain of more than 31% from a low, says technical analyst Frank Cappelleri, CMT. The ETF is about test a further high, Cappelleri says, and the outcome could be an indicator for the equity market.
The Bank of England Monetary Policy Committee has voted unanimously to keep the benchmark interest rate at 0.75% as Brexit uncertainty clouds the country's outlook. "The economic outlook will continue to depend significantly on the nature and timing of EU withdrawal," the central bank says.
EU officials have rejected British Prime Minister Theresa May's request to delay Brexit until 30 June but have extended the departure date to 12 April from 29 March and have established deadlines governing what must happen next. European Council President Donald Tusk says the agreement leaves the UK with the options of a no-deal Brexit, Brexit with a transition deal, a lengthy extension or revocation of the decision to exit the EU.
A Basel Committee on Banking Supervision report estimates the Basel III output floor will result in the single largest Tier 1 capital requirement for 41.4% of European banks. The portion of banks subject to the leverage ratio is expected to decline to 37.9%, while the portion bound by risk-based capital requirements is expected to fall to 20.7%.
About 66% of companies have started implementing a contingency plan for a no-deal Brexit, while 80% of firms say they are prepared for a disorderly departure, according to a Bank of England survey.
The impact of a new EU law on US derivatives clearinghouses in London remains unclear, US Commodity Futures Trading Commission member Brian Quintenz says. Groundwork has been laid for the EU to defer to the US regarding regulation of such clearinghouses, "but we're not there yet", Quintenz says.
The UK Financial Conduct Authority says more than 1,000 EU firms and fund managers have signed on to the temporary permissions regime before a deadline Thursday. The FCA plans to issue authorisation-application dates soon, with the first expected to run from October to December and the last from January to March 2021.
A report by ASIFMA sets out recommendations to make China more attractive to institutional investors. China should develop a workable regime for securities lending and borrowing and should adopt international standards in areas including block trading, short selling, margin finance and derivatives documentation, ASIFMA says.
Intercontinental Exchange's launch of a bitcoin futures contract on Bakkt has been delayed because of a dispute with the Commodity Futures Trading Commission regarding how Bakkt should be regulated. At issue is how Bakkt handles customers' cryptocurrency funds from the daily, physically delivered contract.
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