Commercial banks reported total trading revenue of $9.6 billion in the fourth quarter of 2022, down 24.5% from the previous quarter and up 33.9% compared with the year before, according to the OCC’s Quarterly Report on Bank Trading and Derivatives Activities released on Friday.
The Financial Stability Board issued a set of policy proposals aimed at addressing systemic risk in the non-bank financial intermediation sector, which the group said are intended to “reduce liquidity demand spikes; enhance the resilience of supply in stress; and enhance risk monitoring and the preparedness of authorities and market participants.”
ABA this week wrote to the Financial Accounting Standards Board in support of a deferral of the sunset date for the transition relief provided by FASB and the expansion of the definition of the Secured Overnight Financing Rate, or SOFR, to include term SOFR as eligible to be designated a benchmark index for hedge accounting purposes.
Chair of the Financial Stability Board sent a letter to G20 finance ministers and central bank governors addressing financial stability issues caused by the invasion of Ukraine.
In a joint statement today, the Commodities Futures Trading Commission’s Market Participants Division and Division of Market Oversight emphasized to market participants and swap execution facilities the importance of an orderly transition away from Libor.
As part of regulators’ efforts to facilitate the ongoing transition away from Libor, the Commodity Futures Trading Commission’s Market Risk Advisory Committee today recommended “SOFR First” as a market best practice.
With certain tenors of Libor set to sunset at the end of 2021, the Commodity Futures Trading Commission’s Interest Rate Benchmark Reform Subcommittee today announced that it has voted to recommend that beginning July 26, interdealer brokers replace trading of Libor linear swaps with trading of U.S. dollar linear swaps tied to the Secured Overnight Financing Rate, the Alternative Reference Rates Committee’s preferred Libor alternative.
The Federal Reserve today finalized new categories of entities under the “financial institution” status under the FDIC Improvement Act’s netting provisions, first promulgated in Regulation EE in 1994.
The OCC today finalized changes to its rules for national bank and federal savings association activities, operations and corporate governance to ensure that they can continue to meet the shifting needs of consumers, businesses and communities.
The Commodity Futures Trading Commission today finalized a rule that exempts from clearing requirements certain swaps entered into by financial holding companies with less than $10 billion in assets.