Data indicate cleared swaps volume is concentrated in a small group of systemically important clearinghouses. LCH leads in interest rate and foreign exchange, while Intercontinental Exchange dominates credit derivatives.
Billions of pounds of digital trade could be threatened if the UK leaves the EU without a data-transfer agreement, says Steve Wood, the UK's deputy information commissioner. British businesses are asking whether they need legal authority for UK-EU data exchanges after Brexit eliminates their automatic right to cross-border transfers, Wood says.
Decoupling between US Treasurys and emerging-market local-currency bonds might mean emerging-market bonds are due for an inflation-linked correction, Jonathan Wheatley writes.
Changes to the Basel Committee on Banking Supervision's Pillar 2 approach to operational-risk capital might create an uneven playing field that includes an increase in capital requirements for European banks while US banks see a decrease. Banks hope regulators make adjustments before the standardised approach takes effect in 2022.
Use of request-for-quote platforms appears to have risen since the start of the year, with the Tradeweb platform reporting a 32.1% increase in average daily exchange-traded-fund deals and the two other leading platforms expected to post similar figures. A requirement of Europe's revised Markets in Financial Instruments Directive for buy-side firms to provide evidence of best execution, which they can do automatically by using RFQ platforms, is thought to be propelling the growth.
The EU should make budget preparation more transparent and fully open to democratic oversight, the European Court of Auditors says. The budget should present a clear picture of "costs, benefits and net balances of EU membership," auditors say.
The China Securities Regulatory Commission and Kazakhstan's Astana Financial Services Authority have agreed to bolster cooperation on securities and futures regulation. Their memorandum of understanding also covers trade, bilateral exchanges and support of the Belt and Road project.
MSCI has called on India's National Stock Exchange, BSE and Metropolitan Stock Exchange to reconsider their "unprecedented" ban on foreign exchanges' access to licensing and data. MSCI said the restrictions could cause "unnecessary disruptions in trading or a potential change in the market classification of the Indian market in the MSCI Indexes."
Trading was subdued on mixed Asian-Pacific stock markets Friday, with exchanges in China, Hong Kong and South Korea closed for Lunar New Year. Japan's Nikkei 225 gained 1.2%; Australia's S&P/ASX 200 slid 0.1%; and India's Sensex was down 0.8%.