ED&F Man Capital Markets is benefiting from banks' decision to hold off on clearing bitcoin futures by signing 35 hedge funds, proprietary-trading firms and others and negotiating with at least six. The brokerage's Brooks Dudley says adding so many clients for one product is unusual.
The European Banking Federation plans to revise the European master agreement to align it more closely with recent legislation, such as the European Market Infrastructure Regulation, particularly regarding over-the-counter derivatives. Market participants and financial lawyers have been urging the update, saying Brexit particularly demands it.
The number of systematic internalisers will fall sharply once Europe's revised Markets in Financial Instruments Directive takes effect, says Patricia Shin, managing director of brokerage Kepler Cheuvreux. Shin predicts that a decline in research payments will prompt the demise of many registered SIs, which stand at more than 80, and that MiFID II will push trading away from dark pools into regulated markets.
The People's Bank of China has listed 40 online platforms for currency trading that might be operating illegally because they lack regulatory approval. The central bank has ordered nonbank payment services to stop handling transactions for the platforms.
The Hong Kong Securities and Futures Commission has warned that investors could face "substantial risks" from trading cryptocurrency futures. "Even though the underlying assets of bitcoin futures are not regulated under the Securities and Futures Ordinance, bitcoin futures traded on and subject to the rules of those exchanges are regarded as 'futures contracts' for the purposes of the Securities and Futures Ordinance," the SFC said.
Vanguard has successfully completed a test in which its index provider, the University of Chicago's Center for Research in Security Prices, distributed daily data to 15 funds via blockchain technology. Transmitting index data through distributed-ledger technology lets investment managers instantly distribute, receive and process information and eliminates human error inherent in manual updates.
House and Senate lawmakers are near agreement on a final tax bill that would set the corporate tax rate at 21%, well below the current 35% but slightly higher than the 20% in separate bills approved by each chamber. Negotiators are discussing replacing the top individual tax rate of 39.6% with 37%.
Most Asian-Pacific stock markets rose Wednesday as traders awaited the outcome of the Federal Reserve's two-day policy meeting. Japan's Nikkei 225 lost 0.5%; Hong Kong's Hang Seng Index jumped 1.5%; Australia's S&P/ASX 200 edged up 0.1%; China's Shanghai Composite added 0.7%; South Korea's Kospi moved up 0.8%; and India's Sensex was down 0.5%.