Eurozone finance ministers have voted for Spanish Economy Minister Luis de Guindos to serve as vice president of the European Central Bank. He has pledged to defend the ECB's independence.
Coping with a budget hole caused by Brexit will be extremely challenging for the EU, German Chancellor Angela Merkel says. A growing need to pay for defence and immigration makes this a particularly difficult time to come up with more money for the EU budget, she says.
AFME has warned that Brexit might force the rewriting of securities-finance and derivatives contracts. "Both customer terms and transactional documentation may be impacted to a greater or lesser extent by Brexit repapering," AFME's Oliver Moullin wrote.
Deutsche Bank is eliminating hundreds of positions as part of a five-year cost-cutting and restructuring plan, sources say. The bank reportedly has reduced employees in London and the US during the past two weeks.
The European Securities and Markets Authority's delay in implementing dark-pool double-volume caps on equities trading until March has market participants concerned a lack of data will prompt trade misclassification. Venues note problems with the data-reporting system under the revised Markets in Financial Instruments Directive.
Banks and supervisors must keep up with financial technology, according to a paper by the Basel Committee on Bank Supervision. The industry is no stranger to innovation, but "rapid adoption of enabling technologies and emergence of new business models pose an increasing challenge to incumbent banks in almost all the banking industry scenarios considered", the paper says.
The UK's withdrawal from the EU won't trigger a "race to the bottom" in which Britain downgrades financial regulation, workers' rights and environmental protection to gain an advantage over European competitors, says David Davis, the UK's Brexit secretary. "We will continue our track record of meeting high standards after we leave the European Union," he plans to tell business leaders in Vienna.
Morgan Stanley has informed some overseas wealth-management clients their relationship is to be terminated within 30 days, a source says. The bank, which cites increased complexity of serving non-US clients, joins others, including Barclays and Citigroup, in an apparent trend toward disengagement with smaller, relatively inactive clients.
Asian-Pacific stock markets mostly fell or remained flat amid modest volume Tuesday, with Chinese exchanges still closed for Lunar New Year. Japan's Nikkei 225 dropped 1%; Hong Kong's Hang Seng Index lost 0.8%; Australia's S&P/ASX 200 was flat; South Korea's Kospi gave up 1.1%; and India's Sensex was down 0.2%
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