Clearing & Post-Trade

ASX Responds on Tranche 1 Rule Changes for CHESS Replacement

25/05/2020

ASX says it will not be mandating settlement locks for CHESS holdings, given the broad support stakeholders for this approach.

Supervision & Enforcement

CSRC to Optimise Classification System for Securities Firms

25/05/2020

The changes are aimed at ensuring the classification system encourages firms to maintain focus on risk management capabilities and continuous compliance.

Trading & Investment

Taiwan Considers Establishing New Market for SMEs

25/05/2020

Only professional investors would be allowed to buy or sell shares on the new platform, which would be independent of Taiwan’s other fundraising markets.

Conduct, Culture & Accountability

Australian Treasury Bans ‘Conflicted’ Commissions Paid on LICs

24/05/2020

Fund managers will be barred from paying fees to financial advisers and stockbrokers for selling listed investment companies and trusts.

Emerging Prudential Risks

Hong Kong: National Security Law Expected to Cause Capital Flight

24/05/2020

Bankers are reportedly receiving requests to activate plans to withdraw assets from Hong Kong in light of Beijing’s plan to impose national security legislation in Hong Kong.

Fraud, Scams & Cybercrime

CSRC Accuses Guangdong Fund Manager of Lying to Investors

24/05/2020

Guangdong-based Cornerstone Management reportedly lost 70% in two funds after promising a minimum 8% annual return.

Credit Risk

RBI Cuts Interest Rate Again, Extends Debt Moratorium

24/05/2020

The RBI has also increased the large exposures cap for banks from 25% to 30% and granted FPIs three more months to comply with requirements under the voluntary retention route.

Trading & Investment

SFC to Allow Leveraged, Inverse ETFs Tracking Mainland Indices

24/05/2020

The SFC is prepared to initially only accept ‘swap-based’ L&I products tracking Mainland equity indices, with a leverage factor up to 2x, or negative 1x for inverse products.

Liquidity Risk

BOJ Targets Small Businesses with New Lending Facility

24/05/2020

The 30tr yen facility will provide lending to businesses with interest-free funding, while paying a positive 0.1% interest on the amounts they lend to businesses.