Goldilocks’ Comments and Global Economic News for July 27, 2023
RJ: Good afternoon Dinar Recaps,
Posted at 12:30 am this morning:
Before I go to sleep tonight, I just want to make it clear that Basel 3 is being proposed tomorrow, and not, implemented.
This proposal is a plan that will be reviewed and implemented tomorrow as a plan, but the actual date of activation will come at a later time.
The fact that they are presenting a plan for review allows us to know just how close we are to this activation.
© Goldilock
The Congressional Committee has passed the crypto clarity bill. The Congressional Committee has spent several hours at getting us to this point.
Their responsibility was to look at all angles of this legislative process and come up with a proposal they feel would pass through the House and the Senate.
Both parties are secure enough to move forward with this process at this time. Let’s see how long it takes for it to go through a vote and present this as a standard protocol for the crypto community.
The next step is to calendar the event of the vote. One of the articles below gives you an idea of the legislative process and how it takes place. They are between step four and five at this point. This means it is about to go to the House for a vote.
© Goldilocks
https://www.msn.com/en-us/money/markets/crypto-bill-passes-congressional-committee-in-victory-for-industry/ar-AA1epbwo
https://www.congress.gov/legislative-process#:~:text=Committee%20members%20and%20staff%20focus,the%20lead%20in%20this%20effort.
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“CFTC Approves Final DCO Reporting and Information Requirement and Three Proposals at the Commission Open Meeting”
A Derivatives Clearing Organization (DCO) make sure that there are adequate reporting procedures and funds on both sides of a trade through a registered facility desiring to do swaps on the market that includes currency exchanges.
A DCO follows the 17 principles of the “Commodities Exchange Act” to fulfill a contract between two entities.
Here are the proposals:
“Final Rule: Reporting and Information Requirements for Derivatives Clearing Organizations
Proposed Rule: Swap Confirmation Requirements for Swap Execution Facilities
Proposed Rule: Amendments to Provisions Common to Registered Entities
Proposed Rule: Margin Requirements for Uncleared Swaps for Swap Dealers and Major Swap Participants”
@ Goldilocks
https://www.cftc.gov/PressRoom/PressReleases/8758-23
https://www.cftc.gov/IndustryOversight/ClearingOrganizations/index.htm
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“Deutsche Bank has gone live on CLSNet, CLS’s bilateral payment netting calculation service.”
The CLSNet centralises and standardises post-trade transactions. This is done from one country to another on more than 120 currencies.
It gives users legal confirmation of their transactions, it reduces risks, and it makes for a more efficient process across borders.
Remember, the Deutsche Bank reaches across the world to many of the banks you and I utilize for service.
© Goldilocks
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Going forward, look for digital/currency reforms to pick up their pace.
© Goldilocks
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A lot of SEC Rules, Reforms and Proposals at 8:30 am this morning: Here is one that will affect us. Visit Goldilocks’ room.
SEC.gov | SEC Proposes Reforms Relating to Investment Advisers Operating Exclusively Through the Internet
https://www.sec.gov/news/press-release/2023-141
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“Currency reforms have been implemented every so often in emerging-market and transition economies.
A currency reform is a prearranged redenomination or alteration of the currency, sometimes with confiscatory elements.
Currency reforms may be introduced as part of a disinflationary stabilization programme, when territorial or political changes warrant the introduction of a new currency, or when a country joins a currency union.
A currency reform may be a useful step in obtaining or retaining macroeconomic stability, but the outcome of the reform rests on the acceptance and credibility of the new currency.
The details of the implementation of a currency reform and in particular of the accompanying policy measures are of crucial importance for a successful currency reform.”
https://link.springer.com/chapter/10.1007/978-1-137-37138-6_3
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The dollar has made an unsustainable move up today. There is strong resistance at 102.
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Everything posted today in the Goldilocks room is about currency reforms. Transition and change is on its way around the world.
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We have Basel 3 being proposed and reviewed today. The next steps will be the House and Senate votes before it becomes law.
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A lot is truly going on…
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“The proposed improvements to strengthen the banking system are estimated to result in an aggregate 16 percent increase in common equity tier 1 capital requirements for affected bank holding companies, with the increase principally affecting the largest and most complex banks.”
Federal Reserve Board – Agencies request comment on proposed rules to strengthen capital requirements for large banks.
https://www.federalreserve.gov/newsevents/pressreleases/bcreg20230727a.htm
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