Goldilocks’ Comments and Global Economic News Saturday AM 12-23-23
Good Morning
“The new framework for market risk (the Fundamental Review of the Trading Book or FRTB) and the new additive requirements for derivative transactions (the Credit Valuation Adjustment or CVA-related changes) would significantly raise the costs for U.S. public companies to hedge business and operating risks e.g., interest rate, foreign exchange, and commodity risks.”
The Basel 3 end game which begins in the middle of January 2024 will be implemented in three phases just like Protocol 20 at the end of the month is going to be implemented in three phases.
The expectation is that it will affect the markets in new price pressures because of the addition of more Capital Requirements to supplement and equate trade and investment value risks. Bank stress tests have been performed, and the recommendation for this phased-in approach for Protocol 20 and Basel 3 implementation was the topic of their concluding thoughts.
© Goldilocks
Business Roundtable Link
Cadwalader Link
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Revised FSB Recommendations and IOSCO Guidance on Anti-Dilution Liquidity Management Tools (LMTs) aim to achieve a significant strengthening of liquidity management by open-ended fund (OEF) managers compared to current practices. FSB Link
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Philadelphia Fed manufacturing gauge weakens further in December
Key details:
The barometer on new orders dropped sharply to negative 25.6 in December after a slightly positive reading of 1.3 in the prior month.
The shipments index remained in contraction territory at negative 10.8.
The measure on six-month business outlook rose to 12.1 from a negative reading of 2.1 in November. This is the highest reading since July.
Big picture: The Philadelphia Fed index is one of the first regional manufacturing gauges that offer timely reads of the manufacturing sector. Morningstar Link
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(Bloomberg) — China will halt the export of a range of rare-earth technologies, potentially making it harder for the US and its allies to bolster Western supplies of strategic raw materials.
Finance Yahoo Link
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CHINA’S YUAN SECURES FOURTH PLACE IN GLOBAL PAYMENTS
TLDR
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China’s yuan has overtaken the Japanese yen to become the fourth most-used currency in global payments.
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The yuan’s share in global payments rose to 4.6%, trailing only the pound sterling, euro, and US dollar.
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Lower interest rates in China have made the yuan more appealing for international trade finance.
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The yuan’s rise reflects Beijing’s efforts to enhance its international profile and reduce reliance on the US dollar. CryptoPolitan Link
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Basel 3 and Protocol 20 are currently being synchronized to run parallel to one another and interfaced as a single cohesive unit.
© Goldilocks
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Why Hydrogen-Powered Planes Will Beat Electric Planes
https://youtu.be/IMb5Frr-520?feature=shared
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Prometheum gets the go-ahead from FINRA to offer digital asset securities clearing services
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Washington, D.C. — Commissioner Christy Goldsmith Romero, sponsor of the Commodity Futures Trading Commission’s (CFTC) Technology Advisory Committee (TAC), today announced the TAC will hold a meeting on January 8, 2024. The meeting will take place from 12:30 p.m. to 4:30 p.m. (EST) at the CFTC’s Washington, D.C. headquarters. The public will be able to watch the live meeting via webcast at CFTC.gov
At this meeting, the TAC will continue its discussion of issues relating to digital assets and blockchain technology, cybersecurity, and emerging and evolving technologies.
A detailed agenda will be forthcoming as the meeting date approaches. For agenda updates and more information about this advisory committee, including its members, visit TAC.
https://www.cftc.gov/PressRoom/PressReleases/8844-23
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S&P Global Ratings Launches Stablecoin Stability Assessment PR Newswire Link
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Blockchain adoption ‘accelerating very quickly’ in big finance — Franklin Templeton exec
Coin Telegraph Link
