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Shut the window: EU Parliament tackles leverage loophole
EU banks may have to calculate leverage ratios daily, potentially hitting their repo market share
Regulators bristle at slow progress on BCBS 239
Three out of 30 banks compliant with six months to go; talk of capital add-ons for laggards
First SOFR swaps trade as banks test new benchmark
First OTC trades include two basis swaps and an OIS trade, with JP Morgan thought to be a counterparty
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Risk Quantum
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Risk Quantum finds insights in data. The service tracks the public disclosures of over 120 banks, funds, insurers, corporates, and central counterparties – as well as reports from prudential and markets regulators – in Asia, Europe and North America.
Editors' choice
Rise of the cyborgs: tech remakes the front office
Dealers “have no choice” but to change, says UBS’s Orcel – and plenty of changes are coming
Big Figure
DB USA flunks Fed stress test
Deutsche Bank (DB) USA failed the latest round of the Federal Reserve’s annual stress tests, while Goldman Sachs, Morgan Stanley and State Street were handed conditional passes that will limit their capital distributions in upcoming quarters. The US operations of Deutsche Bank flunked the Fed’s Comprehensive Capital Analysis and Review on qualitative grounds, as a result of “widespread and critical deficiencies across the firm’s capital-planning practices”. This was despite DB USA acing the quantitative tests by reporting a post-stress common equity Tier 1 capital ratio of 12.2% – far above the 4.5% required minimum.
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7 days in 60 seconds
Digital offices, Brexit swaptions and forex derivatives
The week on Risk.net, July 7-13, 2018
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