Market Infrastructure

BOJ, FSA Publish Findings on LIBOR Transition Progress

15/03/2020

About 50% of the 6.3 quadrillion yen in notional derivatives referencing LIBOR will mature after 2021, but “very few” contracts incorporate fallback provisions.

Big Picture

Wolters Kluwer, PwC Complete PoC Using AI in Regulatory Reporting

15/03/2020

After minutes of training, algorithms were able to use 250,000 records of previously unseen raw data to predict regulatory reporting output with degrees of accuracy exceeding 99%.

Securities / Derivatives

SET Tightens Short Selling Rule After Second Trading Halt

14/03/2020

Short selling orders can now only be executed at prices higher than the last traded price, the SET said after its circuit breaker was triggered for the second day in a row.

Securities / Derivatives

FSC Korea Imposes Complete Ban on Short-Selling for Six Months

14/03/2020

The FSC is also loosening rules on share buybacks and lifting minimum collateral coverage requirements for securities firms, while the BOK considers an interest rate cut.

Capital / Liquidity

PBOC Announces Second Reserve Requirement Cut of 2020

14/03/2020

The move is expected to release 550 billion yuan of long-term funds into the banking system to facilitate lending to small firms and other vulnerable sectors.

Capital / Liquidity

PBOC Controlled SPV to Infuse More Cash Into Bank of Jinzhou

13/03/2020

New private placement shares represent a more than 44% expansion of Bank of Jinzhou’s share capital, diluting the stakes of existing investors in the bank.

Capital / Liquidity

ECB Announces Stimulus Measures, Banks Granted Regulatory Relief

13/03/2020

The measures include liquidity facilities to help businesses, targeted asset purchases, and relaxed regulatory requirements for banks.

Market Infrastructure

SAFE Raises Upper Limit for Firms Borrowing Overseas

13/03/2020

The move will increase the funding channels available to SMEs, ease their financing difficulties and help them more quickly resume normal operations, SAFE says.

RBI to Provide Liquidity in Forex Market as Rupee Crashes

13/03/2020

The RBI will offer USD/INR sell/buy swaps to bolster FX  market liquidity, as foreign investors withdraw from India amid growing concerns over Covid-19’s economic impact.