Statements from European Central Bank President Mario Draghi and Bank of England Governor Mark Carney appear to have caused a degree of market movement and confusion, resulting in surges for eurozone bond yields and the pound. Draghi's comments that intimated a change to the ECB's bond-buying policy are said to have been misinterpreted, while Carney's comments that the UK interest rate may need to rise seemed at odds with his stated opinion from last week.
A US Treasury Department report suggesting that globally agreed upon reforms may be postponed or waived could undermine the entire system, says European Central Bank executive board member Sabine Lautenschlaeger. "In my view, purely national initiatives will not improve the stability of the financial system, quite the opposite," she said.
A report released in May by activist investor David Webb now seems prophetic as 40 of the 50 members he identifies as part of the Enigma network were hit by Tuesday's small-cap rout on the Hong Kong exchange. The losses extended into Wednesday.
Investors' cautious approach to the initial public offering of meal service Blue Apron forced the company to cut its share price to $10 from a range of $15 to $17. That gives the company a $1.9 billion valuation, slightly below its $2 billion private-market valuation before the offering.
The number of initial public offerings is rising significantly across Europe, with 142 companies raising $18 billion to date in 2017 amid low market volatility and strengthening investor confidence.
Regulators' insistence that transaction cost analysis must be used for best execution across multiple asset classes is proving problematic for fixed income managers, panellists said at a conference, as determining what constitutes best execution is not the same as it is for equity managers. However, some panellists contended that the problems will ease, as ongoing use of TCA will accumulate more data and reference points.
The World Bank issued "pandemic bonds" Wednesday, which pay investors regularly but diverts funds for emergency finance if a catastrophic disease, such as Ebola, breaks out. The World Bank raised $322 million through two bond issues.
Nasdaq, which operates exchanges in the Nordic and Baltic regions, is testing in Scandinavia a service called auction on demand, which will enable bid and sell order information to be concealed for as long as possible. Europe's revised Markets in Financial Instruments Directive is aimed at eliminating dark pool trading in its current form, but Nasdaq asserts that investor demand for such products remains as strong as ever.
The European Securities and Markets Authority has issued an update on the pan-European IT infrastructure it plans to implement to aid compliance with the revised Markets in Financial Instruments Directive. The infrastructure is intended to enable reception and publication of reference data and calculate liquidity assessments among other key features.
Reacting to sharp drops in stock prices for companies targeted by short sellers, Hong Kong's Securities and Futures Commission will examine its regulations for short selling and make any necessary changes, said Secretary for Financial Services and the Treasury Chan Ka-keung. The commission has received complaints that some reports made public by short sellers have contained false or misleading statements.
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