Financial Markets
Top stories summarized by our editors
5/22/2017

Ford is removing CEO Mark Fields and replacing him with Jim Hackett, chairman of subsidiary Ford Smart Mobility, sources say. Executive Chairman Bill Ford and other board members reportedly have lost confidence in Fields.

5/22/2017

The EU will risk "fragmented markets and supervisory arbitrage" if it doesn't enact rules to create a European banking union, said Valdis Dombrovskis, the European Commission's financial-services chief. Among the most important rules needed are those that create bailout funds to deal with failed banks, he said.

5/22/2017

The advisory industry is facing a shortage of labor, as the workforce ages and a large pool of talent is absorbed by firms offering hybrid services. By 2022, the shortfall is expected to hit 200,000, according to consulting firm Moss Adams.

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Moss Adams
5/22/2017

Buy-side execution performance will see enormous gains as traders harness artificial intelligence, financial-technology experts say. "When a model is constantly learning from the outcomes of when you followed the initial advice, your performance will keep improving," says Natasha Shamis of Liquidnet Labs.

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The Trade (UK)
5/22/2017

Financial-technology specialists say they are concerned that sell-side firms are not ready to calculate research pricing, a task that will be required when unbundling rules under Europe's revised Markets in Financial Instruments Directive take effect in January. One specialist pointed out to a buy-side conference that few of their sell-side counterparts have structures and models in place for the task, although another expert suggested that buy-siders themselves should contribute to the calculation process.

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The Trade (UK)
5/22/2017

The SoftBank Vision Fund, sponsored by Saudi Arabia's top sovereign-wealth fund and Japan's SoftBank Group, said it has raised more than $93 billion to invest in the technology sector. That makes it the world's biggest private equity fund.

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Reuters
5/22/2017

EU leaders will discuss their response to a statement from David Davis, the minister leading the UK's Brexit negotiations, that Britain may walk away from discussions if it deems the EU's demand for payment to leave the bloc excessive. Estimates of the Brexit bill range from €5 billion to €100 billion, with Davis saying that the UK would balk at even €1 billion and indicating that negotiations could be turbulent.

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Bloomberg
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EU, David Davis, Brexit, Brexit
5/22/2017

The impending requirement of Europe's revised Markets in Financial Instruments Directive to fully report how bonds have been allocated to investors is expected to exacerbate an already complex process, bank executives.

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bank executives
5/22/2017

Lawyers and market participants have spoken out critically on a European Commission proposal to adjust the European Markets Infrastructure Regulation so margins must be posted on securitisation special-purpose vehicles on over-the-counter derivatives. One lawyer contended that the change would render SSPVs economically unviable and force loan originators to seek methods such as private placements that would defeat the regulatory intention to increase transparency.

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European Commission
5/22/2017

A proposal to streamline the taxation of cross-border investment is gaining support from several EU members, and they are helping to draft a code of conduct on the issue, said Ugo Bassi, head of the financial markets unit at the European Commission. At the same time, opposition is building against the creation of a pan-EU pension product, he told a conference in London.