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Regulation

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  • Investors are keeping tabs on the outcome of this Thursday’s European Central Bank’s policy meeting, which could see Mario Draghi, ECB president, spell out details of state intervention in the region’s troubled bond markets.
  • South Korea’s Financial Services Commission is looking to stimulate its exchange-traded fund business by relaxing regulations on index-tracking funds, according to China’s Xinhua News Agency.
  • Fears that Australia’s resources boom is finally coming to a close drove credit default swap prices on the nation’s biggest miners to rise sharply within the last week.
  • The European Parliament has set an indicative date of Oct. 23 for a plenary discussion on legislative proposals for the amended Markets in Financial Instruments Regulation (MiFIR) and Markets in Financial Instruments Directove (MiFID).
  • The American Securitization Forum is pushing to exclude securitization entities from being considered as commodity pools and is preparing a letter to be handed to all the Volcker rule regulators tomorrow requesting relief from the Volcker rule.
  • Most covered bonds cannot be hedged with sovereign credit default swaps, because they do not meet for the correlation level required under the European Union’s short selling ban set to start Oct. 1, according to a Bank of America Merrill Lynch report.