France's market regulator said the European Securities and Markets Authority needs to be given more governance and oversight powers, and suggested a number of strategies to facilitate the changes. The additional powers would enable ESMA to make binding decisions on the relocation of central counterparties within the EU.
Orders submitted to the UK's manufacturers hit the highest level in 29 years as the falling pound and recovering global economy boost demand, trade group CBI said. Producers of chemicals, food, beverages and tobacco products received the most orders.
Market participants in the US are raising concerns about the European Commission's proposal to increase supervision of clearing of euro-denominated financial contracts after Brexit. US dealers have told the Commodity Futures Trading Commission that the situation could result in higher margining costs and could cause other issues.
The final decision on which countries will get to host the European Banking Authority and the European Medicines Agency when they leave London due to Brexit will be made by an EU vote in November. Germany and France denied a report that they had secretly agreed to divide up the agencies between themselves, with the medicines agency going to France and the banking authority to Germany.
A wrangle has emerged between global regulators who have failed to agree on how to calibrate the minimum volume of risk-weighted assets required to establish a standardised capital floor for banks, as they work towards compliance with the Basel Committee on Banking Supervision's forthcoming financial-regulatory framework. However, Catherine Contiguglia writes that the debate is premature, as the calibration would depend on several other aspects of the standardisation strategy that are still unknown.
This week's decision to add 222 Chinese A-class shares to the benchmark MSCI indices is likely to provoke governance problems for fund managers, analysts say.
All 34 banks that underwent the Federal Reserve's annual stress test cleared the first round. "This year's results show that, even during a severe recession, our large banks would remain well-capitalized," Fed Governor Jerome Powell said.
Asian-Pacific stock markets mostly advanced in narrow ranges Friday as China's bank regulator asked questions about loans made to buy assets outside the country and as oil prices started recovering from 10-month lows. Japan's Nikkei 225 edged up 0.1%; Hong Kong's Hang Seng Index was flat; Australia's S&P/ASX 200 rose 0.2%; China's Shanghai Composite added 0.3%; South Korea's Kospi moved up 0.4%; and India's Sensex was down 0.5%.
Qatar Airways has submitted an antitrust filing seeking authorization to buy a 10% stake in American Airlines. In its own regulatory filing, American Airlines said that the CEOs of the two companies have talked but that the offer was unsolicited.