Securities regulators in the UK, the US and Australia are among world leaders in development and application of financial technology for market surveillance, according to the Financial Stability Institute. Such technology "could be a game changer in efficient reporting and proactively monitoring the risk and compliance of financial institutions", the institute says.
Intercontinental Exchange plans to debut this quarter a physically delivered Permian West Texas Intermediate crude oil futures contract that is settled and delivered at Magellan Midstream Partners' terminal in Houston. ICE aims to offer "a reliable and predictable quality specification and location that is relevant to global crude pricing, and accessible for domestic and foreign buyers alike," says Jeff Barbuto, vice president of oil markets.
The London Metal Exchange aims to offset competition by implementing "implied pricing," creating synthetic monthly prices for copper, aluminum, zinc, lead, nickel and tin contracts that mature on the third Wednesday of the month. The plan, which starts July 30, "is to build liquidity by providing greater choice to our users and to lower barriers to entry for those currently not accessing our market," CEO Matthew Chamberlain says.
The Japanese Financial Services Agency has replaced the Inspection Bureau with the Strategy Development and Management Bureau, which oversees strategy for financial policy and inspection of financial companies. Cryptocurrencies, financial technology and money laundering are among matters under the bureau's purview.
The Alternative Reference Rates Committee, a private-sector group guiding an overhaul of interest-rate benchmarks in the US, says the Commodity Futures Trading Commission's rules on swaps trading should not apply to derivatives contracts that have been amended to replace Libor as the reference rate.
LCH has traded and cleared the first over-the-counter swaps tied to the Secured Overnight Financing Rate. TP ICAP arranged and executed the SOFR-versus-federal-funds basis swap, followed by a SOFR overnight indexed swap and a second SOFR-versus-federal-funds basis swap.
Goldman Sachs says it has increased risk-taking in commodities, noting average daily value at risk increased to $13 million in the second quarter from $9 million in Q1. That is the first quarterly increase in over a year.
The London Metal Exchange, which plans to introduce the world's first lithium futures contract in 2019, is requesting information to select a pricing provider.
The Connecticut Higher Education Trust recently reported online criminals had stolen $1.4 million from 21 investors, highlighting the vulnerability of college-savings accounts. Experts suggest protecting yourself by checking your account balance regularly and by being wary of what you post on social media.