Distributed ledger technology can enhance the existing settlement system but won't entirely replace settlement infrastructure "without imposing the very costs it was designed to reduce," according to a Greenwich Associates whitepaper. "The technology is evolutionary, not revolutionary, and attempting to replace the clearing infrastructure with this technology is to carry the system not into the future, but into the past," said Greenwich senior analyst Ken Monahan.
Deutsche Bank plans to place as much as €50 billion in assets into a "bad bank" and might make major cuts to equity and rates trading, sources say.
A 0.2% EU financial-transaction tax could be agreed upon this autumn and be implemented in 2021, German Finance Minister Olaf Scholz says, with backing from the European Commission. However, only 10 countries have shown interest in the tax, and other EU officials say further work is needed on the plan.
The Bank of England has written to the chief executives of challenger banks in the UK warning of shortcomings in their risk-management practices following a confidential stress test.
Legislation that would allow extradition to China from Hong Kong could pose legal risk to international firms' employees and could threaten Hong Kong's status as a global financial hub, experts say. "The outcome could be a drain of multinationals to other cities in Asia, with Singapore the most likely beneficiary," says Mark Williams, chief Asia economist at Capital Economics.
The European Securities and Markets Authority sent a letter to the European Commission asking for clarification on the calculation hedging exemption for clearing thresholds for financial and non-financial groups. ESMA also warned that the amended European Market Infrastructure Regulation going into force today "could have some unintended consequences on nonfinancial groups' behaviour."
Banks involved in Hong Kong's derivative warrants market are finding the need to spend more money on technology to counter a threat from high-frequency traders.
TP ICAP has begun offering intermediary services for customers looking to buy or sell bitcoin futures. The interdealer broker also plans to add non-deliverable forwards tied to bitcoin and open trading desks in the US and Asia.
Cargill said that it and other global companies will not meet a goal promised to the UN to eliminate deforestation from the production of agricultural commodities, including soybeans in Brazil.
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