A Northern Trust survey of the Asia-Pacific region reveals widespread expectations that use of artificial intelligence will become standard practice throughout the financial industry within five years. This contrasts with attitudes in Europe, where a SimCorp survey finds only 15% of investment chiefs at buy-side firms consider AI deployment a priority for 2018.
IHS Markit plans to sell over-the-counter derivatives business MarkitSERV to another post-trade provider by year-end, a move CEO Lance Uggla calls "right for the ongoing growth of derivatives-processing marketplace." MarkitSERV, which serves about 1,500 clients, produced $150 million in revenue last year.
Singapore Exchange plans to list Indian equity derivatives products in June, despite an Indian court hearing, scheduled for reportedly Wednesday, to hear National Stock Exchange of India's request for an interim injunction against SGX. "We have full confidence in our legal position and will vigorously defend this action," SGX says.
Without changes to the British immigration system, there is a "clear risk" London will not draw enough qualified talent to maintain its status as a global financial hub after Brexit, according to a report from TheCityUK and EY. "The existing immigration system for non-European citizens is not considered dynamic enough to meet the needs of employers," TheCityUK says.
The Commodity Futures Trading Commission has released guidance on best practices for exchanges and clearinghouses planning to introduce cryptocurrency derivatives contracts. The CFTC will "provide additional guidance to help market participants keep pace with innovation while complying with CFTC regulations" as the cryptocurrency market evolves, says Amir Zaidi, director of market oversight.
The House is expected to vote today on changes to the Dodd-Frank Act that would ease oversight of small and midsize banks. Meanwhile, lawmakers are considering adding relaxation of the Volcker rule to next year's budget for financial regulators, a source says.
Citigroup has used CurveGlobal, London Stock Exchange Group's interest-rate derivatives platform, to clear its first buy-side Sterling Overnight Index Average trade for a hedge fund. The three-month Sonia contract was executed April 30.
President Donald Trump signed a congressional resolution Monday to overturn Consumer Financial Protection Bureau guidance from 2013 meant to prevent discriminatory markups in auto lending. CFPB acting Director Mick Mulvaney thanked Trump in a statement and said the bureau might submit other policies for congressional review.
Many companies are victims of data breaches long before they realize it, as hackers tend to spend months monitoring employee activity before acting, IT security executive Eric Carter of NorthMarq Capital said in a recent panel discussion. Michael Kenney of Freddie Mac said bigger companies are at the greatest risk, adding that the best defense begins with a culture of cybersecurity.