Securities / Derivatives

ASIC Directs Equity Market Participants to Limit Trading

16/03/2020

The move is a response to a particularly large increase in trades executed on Friday, largely attributable to algorithmic and high frequency trading.

Capital / Liquidity

RBNZ Defers Implementation of New Capital Framework

16/03/2020

The deferment will enable banks to supply up to around NZ$47bn in additional lending to households and businesses, the RBNZ estimates. The OCR has also been cut to 0.25%.

Capital / Liquidity

HKMA Responds to Fed Rate Cut, Reduces CCyB

16/03/2020

The base rate is being adjusted downwards to 0.86%, while the countercyclical capital buffer is being reduced from 2.0% to 1.0% to bolster lending.

Capital / Liquidity

US Fed Cuts Rates, Relaxes Regulatory Requirements to Boost Lending

15/03/2020

The Fed is cutting interest rates by 100bps and will buy $700bn in assets. Banks will no longer have to meet reserve requirements and can use capital and liquidity buffers to lend.

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.