The European Securities and Markets Authority issued an opinion stating that only over-the-counter derivatives with the same reference details as derivatives for which trading venues submit reference data are considered "traded on a trading venue" under the revised Markets in Financial Instruments Directive and related ESMA regulations. The directive and related regulations do not spell out exactly what the term means.
The European Central Bank's plans to move the euro-clearing hub out of London are being hampered as representatives from France, Germany and Italy vie to secure the new location for this lucrative business, sources said. Disputes are said to be arising between national regulators and the ECB itself on who should take over its supervision.
A law scheduled to take effect at the beginning of July makes it mandatory for financial institutions in China to examine the accounts of foreign businesses and individuals for evidence of cross-border tax evasion. The law applies to commercial banks, companies that deal in futures, securities firms, private equity managers and insurance companies.
The implementation of blockchain technology in the financial-services industry is meeting some resistance, with enthusiasm not yet translating into an industrywide rollout. While its potential for improving efficiency and making spectacular cost savings has been hailed, the commodity sector has concerns over loss of confidentiality, while other industry participants say formal regulation and oversight of the technology is needed.
Wolfe Research sees an opportunity in a requirement in Europe's revised Markets in Financial Instruments Directive that research costs be unbundled from trading fees. The directive opens the door for Wolfe to challenge the industry with quality research driven by artificial intelligence, the firm says.
Tax reform looks increasingly unlikely this year as Republican rhetoric shifts to simple tax cuts, says US Sen. Ron Wyden. Both sides of the political aisle contain ample support for tax reform, he says, but the Republican majority has failed to reach consensus on legislation that would clear Congress and gain President Donald Trump's signature.
Asian-Pacific stock markets mostly declined Tuesday after a strong close on Wall Street and a terrorist attack in the UK. Japan's Nikkei 225 lost 0.3%; Hong Kong's Hang Seng Index added 0.1%; Australia's S&P/ASX 200 declined 0.2%; China's Shanghai Composite dropped 0.5%; South Korea's Kospi gained 0.3%; and India's Sensex was down 0.7%.
Vivendi CEO Arnaud de Puyfontaine said the company may sell a minority stake in its music company, Universal Music Group, to leverage the music industry's rebound. A few investment banks are suggesting a value for the music unit as high as €20 billion, but analysts put the figure closer to €13 billion.
Expansion of Japan's industrial sector has slowed to the lowest pace in six months, according to the Nikkei Flash Japan Manufacturing Purchasing Managers' Index. The benchmark's reading fell to 52 in May from April's 52.7.