Optimised platform technology results in even more efficient and faster processes KfW plans further digital bond issuances on D7 in the future KfW issues its first high-volume benchmark bond as a central register security according to the German electronic securities act (eWpG) with a value date of 2 July 2024. The issuance was facilitated by Clearstream via Deutsche Börse’s digital securities platform D7. Clearstream is the post-trade business of Deutsche Börse Group. The KfW bond has a volume of €4 billion with a maturity of 3 years and a coupon of 2.75%.  Tim Armbruster, Treasurer at KfW, commented: “We are delighted to have successfully completed a second digital transaction, with a focus on further automating data generation and speeding up the issuance process, thus improving scalability. We thank Deutsche Börse for the constructive cooperation over the past months. It is important to us to provide key insights from the issuer’s perspective to contribute to the further digitisation of capital markets.”  Jens Hachmeister, Head of Issuer Services & New Digital Markets at Deutsche Börse, said: “We are thrilled to welcome KfW’s benchmark bond on our digital D7 platform. This is a striking milestone for the digitisation of German capital markets overall, and we are proud be pioneers in this field. To date, D7 has processed more than 35,000 digital issuances across all financial instruments, totalling around €3.5bn, more than any other platform worldwide. With successful benchmark issuances like this one, D7 proves that it is the platform of choice for high-volume and high-scale digital issuances.”  Thanks to its partnership with Google Cloud, Deutsche Börse further significantly optimised D7’s technology stack as part of the latest system upgrade. This enabled, for instance, a further decrease in time-to-market for digital securities from minutes to seconds. Traditionally, issuances can take several days due to cumbersome reconciliation processes and lack of system interoperability. Digital issuances increase speed, transparency, thus efficiency, while decreasing error-proneness and costs throughout the entire securities lifecycle.  This benchmark bond marks the second time KfW issues a central register security on D7 under the German electronic securities act (eWpG). KfW already completed a first pilot transaction (€20 million, maturity: 2 years) in December 2022. Going forward, KfW plans to use D7 for further euro transactions. 

On June 12, 2024, the Taiwan Futures Exchange (TAIFEX) was notified by the European Securities and Markets Authority (ESMA) that the application submitted on June 28, 2023, for the addition of New Taiwan Dollar Non-Deliverable Forward (TWD NDF) clearing service has been officially approved and is effective on the date of notification. In compliance with Article 25 of the European Market Infrastructure Regulation (EMIR), Third-Country Central Counterparties (TC-CCPs) must notify ESMA of any service extensions or reductions. This allows ESMA to review compliance and assess the impact on the EU market. Accordingly, TAIFEX notified ESMA of its plan to extend clearing services on June 28, 2023, and began offering client clearing and TWD NDF clearing services on July 31, 2023. After confirming TAIFEX's full regulatory compliance, ESMA approved the application on June 12, 2024. TAIFEX is committed to researching the frameworks of international organizations and analyzing the systems of major foreign clearinghouses to develop a clearing mechanism that aligns with international standards. By adhering to the Principles for Financial Market Infrastructures (PFMI), disclosing quantitative information, and optimizing risk management, TAIFEX fosters an environment conducive to participation by both domestic and international institutions. TAIFEX's ongoing efforts have been continuously recognized by foreign financial regulatory authorities. Since the commencement of OTC central clearing services on July 25, 2022, TAIFEX has received recognition from various international financial regulatory bodies. On December 31, 2022, TAIFEX was recognized by ESMA as a TC-CCP. Furthermore, on October 13, 2023, TAIFEX was approved by the Japan Financial Services Agency (JFSA) to be exempted from licensing for TWD IRS clearing, and on February 14, 2024, it was granted the Exemption from Derivatives Clearing Organization registration by the U.S. Commodity Futures Trading Commission (CFTC), significantly enhancing the competitiveness and international visibility of Taiwan's OTC central clearing services. TAIFEX will continue to actively seek qualifying central counterparty (QCCP) recognition from other countries, aligning with international standards, and diligently adhering to regulatory requirements. This effort will enhance foreign financial institutions' confidence in Taiwan’s market, promote the internationalization of Taiwan's financial market, and expand its global influence.

ARTEX Global Markets, providers of the first regulated Art Multilateral Trading Facility (MTF), has collaborated with Exactpro to streamline its platform delivery and software testing practice. Having successfully listed its first artwork – Francis Bacon, “Three Studies for Portrait of George Dyer”, 1963, LU2583605592 – on 8 March 2024, ARTEX Global Markets has been running incident-free since then. The collaboration results are now available in the form of a case study. Co-founded in 2020 by art enthusiasts and financial market experts H.S.H. Prince Wenceslas of Liechtenstein and Yassir Benjelloun-Touimi, ARTEX Global Markets is enabling the trading of a new regulated asset class – art shares. ARTEX Global Markets is a multilateral trading facility (MTF) supervised by the Financial Markets Authority of Liechtenstein and operating within the European MiFID II legislative framework.The joint case study focuses on the collaborative work conducted by the ARTEX and Exactpro teams ahead of, during and post-launch, to ensure the required level of quality and operational resilience of the new trading venue. It highlights the use of Exactpro's AI Testing approach that was tailored to the ARTEX Global Markets needs and encompassed end-to-end functional and non-functional testing of the MTF's protocol and matching engine software.  Alexandre Reynaert, Chief Technology Officer, ARTEX Global Markets, comments on the ARTEX–Exactpro collaboration:  “Building a new trading venue is a rigorous exercise and guaranteeing a flawless experience for our members and participants is paramount. We needed to ensure that our trading venue is robust, consistent and compliant with industry standards, and Exactpro’s insights & experience were invaluable in achieving this goal. “We wanted a partner that was agile, and able to adapt to our specific needs as we changed. Exactpro’s ability to adapt and update their test libraries & models was outstanding. Through the use of AI, the size and execution time of the testing process has been reduced without compromising the quality of the testing. There was also great value in the End-to-End testing aspect to ensure consistency and detect regressions.” Iosif Itkin, co-CEO and co-founder, Exactpro, adds: “Having invested in independent software testing at this early stage, ARTEX was able to avoid a lot of the common pitfalls, resolve defects early and at a lower cost, as well as significantly increase their overall delivery speed. The trading venue is now supported by an extensive test library that can be used regularly for regression testing and serve as a foundation for future growth.  “We very much appreciate the trust put in Exactpro in this collaboration and have enjoyed the opportunity to share our industry expertise and showcase our AI-enabled software testing approach.”  To read the full case study, please follow the link to the Exactpro website.

Nasdaq (Nasdaq: NDAQ) announces that trading in the shares of Flerie AB (ticker name: FLERIE) will commence today on the Nasdaq Stockholm Main Market. Flerie is a Mid Cap company within the Financials sector. It was earlier listed under the name of InDex Pharmaceuticals (ticker name: INDEX) on Nasdaq First North Growth Market Sweden. Flerie is the 16th company to be admitted to trading on Nasdaq’s Nordic and Baltic markets* in 2024, and it is the 134th company to transfer from Nasdaq First North Growth Market to Nasdaq Main Markets in the Nordics over the years. Flerie is an active long-term life science investor, focusing on biotech and pharmaceutical investments globally. They help build pioneering companies and advance their pipeline to make a positive impact on health and well-being. Their portfolio includes a wide range of companies, spread across three segments: Product Development, Commercial Growth and Limited Partnerships. The companies Flerie invests in have ambitious science and the ability to tackle major medical challenges. “Being the first major Swedish life science listing in over three years is proof of the desire to have exposure to biotech and pharma via the portfolio approach that Flerie provides. We help develop therapies for various solid tumours, immunological and metabolic disorders, solve unmet needs in hospitals and at pharmaceutical manufacturing sites and many more, using pioneering science and medical technologies. Our public listing and the subsequent uplisting completes our active ownership and evergreen investment model, allowing us to continue our specialized long-term value creation, while generalists can trade in our stock on a globally respected exchange", said Ted Fjällman, CEO of Flerie. “We warmly welcome Flerie to Nasdaq Stockholm Main Market after the reverse merger. The company’s commitment to pioneering therapies showcases their innovative approach to improving patient outcomes. We look forward at supporting them in all stages of their growth whilst providing them with the increased visibility and investor awareness that comes with a listing on the Main Market,” said Adam Kostyál, President of Nasdaq Stockholm. *Main Markets and Nasdaq First North at Nasdaq Copenhagen, Nasdaq Helsinki, Nasdaq Iceland and Nasdaq Stockholm as well as Nasdaq Baltic.

ZERO13, the COP28 award-winning international carbon exchange, registry and hub aggregation ecosystem, part of GMEX Group (‘GMEX’), has announced a strategic partnership with Distichain, an innovative TradeTech platform delivering international trade-as-a-service for B2B marketplaces and recognised in the PWC NetZero Future50 report. The partnership will see the existing GMEX-enabled Distichain digital custody and payments rails solution extended through the integration of ZERO13’s carbon offset solution and Distichain’s SaaS B2B trade platform. This latest collaboration provides businesses engaging in sustainable global trade with a range of benefits, including: Reduction of Environmental Impact: Traders can effectively mitigate the environmental impact of their business operations; particularly as global trade relies heavily on cross-border transportation and logistics. Participation in Corporate Social Responsibility: Companies and governments can showcase their commitment to environmental sustainability and corporate social responsibility (CSR) initiatives, as well as contribute to the drive to combat climate change. Sustainability inclusivity: This collaboration helps governments and enterprises to prioritise sustainability issues. Combining the two services creates a pragmatic solution accessible to all companies using the Distichain-powered marketplaces. Regulatory Compliance and New Market Access: In regions such as Europe and the USA, where carbon emissions regulations and offset incentives exist, ZERO13 and Distichain can facilitate cross-border trade and enable businesses to demonstrate carbon neutrality or offset their emissions to access specific opportunities or contracts. Haisam Jamal, CEO of Distichain, discussed the partnership, stating, “Our collaboration with ZERO13 marks a significant step in driving sustainability within global digital trade for a NetZero Future. As the first to integrate a carbon offsetting solution directly into B2B platforms, we are empowering traders to actively mitigate their environmental footprint and pave the way for a greener future in cross-border trade." Hirander Misra, Chairman of GMEX Group and ZERO13, commented on the partnership, saying, "The integration of ZERO13's carbon offset solution with Distichain's trade platform represents a major step towards achieving sustainability goals in the global trade ecosystem. With London Climate Action Week and as part of that, the Climate Innovation Forum taking place this week, this collaboration showcases our commitment to providing innovative solutions that mitigate environmental impact and unlock new opportunities for businesses in the evolving landscape of trade finance." ZERO13, provides a digital Platform-as-Service (PaaS) Carbon Trading, Exchange and Carbon Registry Aggregation Hub to support sustainability by enabling distributed interconnectivity across multiple blockchains and APIs. Functioning as a decentralised hub, the 60+ strong and rapidly growing participant ecosystem orchestrates workflows across multiple trade participants to ensure successful trading and settlement, interconnecting silos and addressing the inadequacies of the stand-alone voluntary carbon market (VCM) model. Distichain, a leading provider of International Trade-as-a-Service, offers secure, end-to-end transaction capabilities, enabling businesses to digitally engage in export and import activities. The platform transforms traditional trading processes by digitalising every step via a multi-firm ecosystem, from supply-chain management and verification to secure innovative trade finance solutions.

SGX Securities is pleased to welcome Serial Achieva Limited to Catalist under the stock code “XHV”. Serial Achieva Limited distributes and resells a broad range of consumer and enterprise IT products and computer peripherals, including desktop CPUs, motherboards and VGA cards manufactured by established brands such as Intel, AMD, MSI and Gigabyte. It is also the in-country reseller in Malaysia for laptop computers that are manufactured under the ‘MSI’ brand. With operations in Malaysia and Thailand, the company’s wide customer base comprises resellers such as retailers and chain stores, corporate resellers and system integrators that build custom computing systems. Koh Jin Hoe, Head of Capital Markets, Global Sales and Origination, SGX Group, said, “We are pleased to welcome Serial Achieva Limited to Catalist, providing it with a well-established listing platform to support its growth ambitions. With close to 30 years of operations, the company is in a good position to leverage its capabilities, technological know-how and proven track record to further expand its product portfolio and coverage.”  Sean Goh, Chairman and Non-Executive Director, Serial Achieva Limited, said, “Serial Achieva’s listing today marks the start of a new chapter. It is a step towards crystalising our ambitions to be a regional distributor of choice for our customers and a reliable partner to our suppliers. We will be adaptable and nimble in the face of evolutions in the technological world. I look forward to an exciting journey with all our stakeholders.” Kenny Sim, Chief Executive Officer and Executive Director of Serial Achieva Limited, added, “Our successful SGX listing today opens new avenues for Serial Achieva’s future growth. This historic milestone paves the way for our expansion strategy, which includes strategic acquisitions, mergers, and synergistic alliances, while extending our regional footprint through joint ventures across key neighbouring markets like Indonesia, Vietnam, and the Philippines.” Serial Achieva Limited joins our vibrant ecosystem of more than 200 Catalist-listed companies, with a combined market capitalisation of about S$7.6 billion. This listing will also add to SGX Securities’ technology cluster, with a total of 75 companies with combined market capitalisation of around S$76 billion. Serial Achieva Limited opened at S$0.20 today. 

List of members of the Council of Experts Concerning the Follow-up of Japan’s Stewardship Code and Japan’s Corporate Governance Code (PDF:140KB) Establishment of “Council of Experts Concerning the Follow-up of Japan’s Stewardship Code and Japan’s Corporate Governance Code” Procedures to Run the "Council of Experts Concerning the Follow-Up of Japan's Stewardship Code and Japan's Corporate Governance Code"(PDF:85KB)   Japan’s Stewardship Code The Council of Experts Concerning the Corporate Governance Code   Statements Responses to the Corporate Governance Code and Next Steps of the “Council of Experts Concerning the Follow-Up of Japan’s Stewardship Code and Japan’s Corporate Governance Code” (PDF:174KB) Corporate Boards Seeking Sustainable Corporate Growth and Increased Corporate Value over the Mid- to Long-Term (PDF:276KB) Effective Stewardship Activities of Institutional Investors - To Enhance Constructive Dialogue toward Sustainable Corporate Growth - (PDF:276KB) Revision of the Corporate Governance Code and Establishment of Guidelines for Investor and Company Engagement (2018) Recommended Directions for Further Promotion of Corporate Governance Reform  Board Effectiveness and Ensuring Diversity in the Core Human Resources in Companies for Post-COVID Transformation of Companies Revisions of Japan's Corporate Governance Code and Guidelines for Investor and Company Engagement (2021) Action Program for Accelerating Corporate Governance Reform: From Form to Substance Action Program for Corporate Governance Reform 2024: Principles into Practice   Public Comment Public Comments regarding the Council of Experts Concerning the Follow-up of Japan’s Stewardship Code and Japan’s Corporate Governance Code Call for Public Comments on the "Guidelines for Investor and Company Engagement" (Draft)(2018) Call for Public Comments on the "Guidelines for Investor and Company Engagement" (Draft Revision)(2021)   Finalization of the revised Japan's Corporate Governance Code and the Guidelines for Investor and Company Engagement Finalization of the Guidelines for Investor and Company Engagement (June 1, 2018) Finalization of the revised Japan's Corporate Governance Code (TSE website) (June 1, 2018) Finalization of the revised Guidelines for Investor and Company Engagement (June 11, 2021) Finalization of the revised Japan's Corporate Governance Code (TSE website) (June 11, 2021)   Minutes and Materials The Twenty-Ninth Council on April 18, 2024 AnnouncementMaterial 1 (PDF:0.1MB) Material 2 (PDF:0.7MB) Material 3 (PDF:1.4MB) Material 4 (PDF:0.3MB) Material 5 (PDF:1.0MB) Material 6 (PDF:0.4MB) Minutes (PDF:0.4MB) Opinion (Submitted by Waring member) (PDF:0.4MB) Opinion (Submitted by Toyama member) (PDF:0.3MB) The Twenty-Eighth Council on April 19, 2023 AnnouncementMaterial 1 (PDF:0.1MB)  Material 2 (PDF:0.8MB) Material 3 (PDF:1.3MB) Material 4 (PDF:0.2MB) Material 5 (PDF:0.5MB) Minutes (PDF:0.5MB) Opinion (Submitted by Waring member) (PDF:0.4MB) Opinion (Submitted by Matsuoka member) (PDF:0.4MB) The Twenty-Seventh Council on May 16, 2022 AnnouncementMaterial 1 (PDF:0.1MB) Material 2 (PDF:1.3MB) Material 3 (PDF:1.1MB) Material 4 (PDF:0.7MB) Minutes (PDF:0.6MB) Opinion（Submitted by Waring member）(PDF:0.2MB) Opinion（Submitted by Toyama member）(PDF:0.4MB) Reference（Submitted by Keidanren(Japan Business Federation)) (PDF:0.3MB) The Twenty-Sixth Council on March 31, 2021 AnnouncementMaterial (PDF:227KB) Appendix 1 (PDF:466KB) Appendix 2 (PDF:189KB) Minutes (PDF:378KB) Opinion（Submitted by Matsuoka member）(PDF:283KB) Opinion（Submitted by Waring member）(PDF:230KB) The Twenty-Fifth Council on March 9, 2021 AnnouncementMaterial 1 (PDF:290KB) Material 2 (PDF:599KB) Material 3 (PDF:777KB) Minutes (PDF:375KB) Opinion（Submitted by Waring member）(PDF:195KB) The Twenty-Forth Council on February 15, 2021 AnnouncementMaterial 1 (PDF:745KB) Material 2 (PDF:206KB) Material 3 (PDF:1,292KB) Material 4 (PDF:341KB) Material 5 (PDF:381KB) Minutes (PDF:347KB) Opinion（Submitted by Waring member）(PDF:222KB) The Twenty-Third Council on January 26, 2021 AnnouncementMaterial 1 (PDF:849KB) Material 2 (PDF:602KB) Material 3 (PDF:406KB) Material 4 (PDF:1,093KB) Material 5 (PDF:1,393KB) Minutes (PDF:380KB) Opinion（Submitted by Okina member）(PDF:147KB) Opinion（Submitted by Toyama member）(PDF:319KB) Opinion（Submitted by Waring member）(PDF:340KB) The Twenty-Second Council on December 8, 2020 AnnouncementMaterial 1 (PDF:207KB) Material 2 (PDF:271KB) Material 3 (PDF:438KB) Minutes (PDF:399KB) Opinion（Submitted by Waring member）(PDF:565KB)  Opinion（Submitted by Toyama member）(PDF:185KB) The Twenty-First Council on November 18, 2020 Material 1 (PDF:218KB) Material 2 (PDF:613KB) Material 3 (PDF:121KB) Material 4 (PDF:519KB) Material 5 (PDF:570KB) Minutes (PDF:380KB) Opinion（Submitted by Okina member）(PDF:148KB) Opinion（Submitted by Toyama member）(PDF:335KB) Opinion（Submitted by Waring member）(PDF:321KB) The Twentyth Council on October 20, 2020 Material 1 (PDF:89KB) Material 2 (PDF:115KB) Material 3 (PDF:304KB) Material 4 (PDF:904KB) Material 5 (PDF:556KB) Minutes (PDF:513KB) Opinion（Submitted by Okina member）(PDF:138KB)  Opinion（Submitted by Waring member）(PDF:2,007KB) Reference（Submitted by Waring member）(PDF:618KB) Opinion（Submitted by Toyama member）(PDF:212KB) Opinion（Submitted by Matsuoka member）(PDF:145KB)  The Nineteenth Council on April 10, 2019 Material 1 (PDF:245KB) Material 2 (PDF:591KB) Minutes (PDF:471KB) Opinion (Submitted by Kobayashi member)  (PDF:108KB) The Eighteenth Council on March 5, 2019 Material 1-1 (PDF:1767KB) Material 1-2 (PDF:2666KB) Material 2 (PDF:1568KB) Reference 1 (PDF:263KB) Reference 2 (PDF:252KB) Minutes (PDF:479KB) Opinion (Submitted by Kobayashi member)  (PDF:128KB) Opinion (Submitted by Toyama member)  (PDF:245KB) Opinion (Submitted by Ueda member)  (PDF:161KB) The Seventeenth Council on January 28, 2019 Material 1-1(PDF:1032KB) Material 1-2(PDF:943KB) Minutes (PDF:522KB) The Sixteenth Council on November 27, 2018 Material 1 (PDF:2917KB) Material 2 (PDF:326KB) Material 3 (PDF:3018KB) Minutes (PDF:532KB) Opinion (Submitted by Ueda member)  (PDF:137KB) Opinion (Submitted by Iwama member)  (PDF:151KB) The Fifteenth Council on March 13, 2018 Material (PDF:211KB) Appendix 1 (PDF:493KB) Appendix 2 (PDF:185KB) Minutes (PDF:544KB) Opinion (Submitted by Ueda member)  (PDF:78KB) Opinion (Submitted by Uchida member)  (PDF:127KB) Opinion (Submitted by Waring member)  (PDF:352KB) Opinion (Submitted by Toyama member)  (PDF:118KB) The Fourteenth Council on February 15, 2018 Material 1 (PDF:152KB) Material 2 (PDF:345KB) Minutes (PDF:676KB)   Opinion (Submitted by Sampei member)  (PDF:192KB) Opinion (Submitted by Waring member) (PDF:310KB) The Thirteenth Council on December 21, 2017 Material 1 (PDF:95KB) Material 2 (PDF:583KB) Material 3 (PDF:322KB) Material 4 (PDF:144KB) Minutes (PDF:631KB) The Twelfth Council on November 15, 2017 Material 1 (PDF:141KB) Material 2 (PDF:171KB) Minutes (PDF:547KB) Opinion (Submitted by Ueda member)  (PDF:94KB) Opinion (Submitted by Toyama member) (PDF:92KB) The Eleventh Council on October 18, 2017 Material 1 (PDF:2,074KB) Material 2 (PDF:2,423KB) Minutes (PDF:301KB) Reference (PDF:238KB) Opinion (Submitted by Toyama member) (PDF:148KB) The Tenth Council on November 8, 2016 Material (PDF:270KB) Minutes (PDF:214KB) Opinion (Submitted by Toyama member) (PDF:170KB) Opinion (Submitted by Nishiyama member) (PDF:200KB) The Ninth Council on September 23, 2016 Material 1 (PDF:264KB) Material 2 (PDF:145KB) Material 3 (PDF:629KB) Minutes (PDF:258KB) Opinion (Submitted by Toyama member) (PDF:115KB) Reference (PDF:348KB) The Eighth Council on June 1, 2016 Material 1 (PDF:210KB) Material 2 (PDF:137KB) Material 3 (PDF:994KB) Material 4 (PDF:499KB) Minutes (PDF:250KB) Opinion (Submitted by Toyama member) (PDF:232KB) The Seventh Council on April 26, 2016 Material 1 (PDF:59KB) Material 2 (PDF:171KB) Material 3 (PDF:1,041KB) Material 3-1 (PDF:1,708KB) Material 3-2 (PDF:376KB) Minutes (PDF:268KB) Opinion (Submitted by Nishiyama member) (PDF:175KB) The Sixth Council on February 18, 2016 Material 1 (PDF:113KB) Material 2 (PDF:106KB) Material 3 (PDF:1,277KB) Minutes (PDF:277KB) The Fifth Council on January 20, 2016 Material 1 (PDF:365KB) Material 2 (PDF:91KB) Material 3 (PDF:104KB) Minutes (PDF:278KB) Opinion (Submitted by Oguchi member) (PDF:52KB) Opinion (Submitted by Takayama member) (PDF:32KB) The fourth Council on December 22, 2015 Material 1 (PDF:36KB) Material 2 (PDF:54KB) Material 3 (PDF:403KB) Reference (PDF:211KB) Minutes (PDF:451KB) Opinion (Submitted by Toyama member) (PDF:249KB) The Third Council on November 24, 2015 Material 1 (PDF:241KB) Material 2 (PDF:53KB) Material 3 (PDF:644KB) Material 3-1 (PDF:965KB) Material 3-2 (PDF:808KB) Minutes (PDF:401KB) Opinion (Submitted by Uchida member) (PDF:137KB) Opinion (Submitted by Toyama member) (PDF:402KB) The Second Council on October 20, 2015 Material 1 (PDF:779KB) Material 2 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ASIC has approved a new version of the Australian Banking Association’s (ABA) Banking Code of Practice, which includes enhancements to key protections. The new Code will commence on 28 February 2025. Following a period of extensive ASIC-led consultation, the ABA agreed to address critical gaps flagged by stakeholders, resulting in a strengthening of standards and a retention of key protections for consumers and small businesses. The enhancements in the February 2025 Code include: expanding the definition of a small business from $3 million in aggregate borrowings to $5 million meaning another 10,000 businesses will be eligible, improved inclusivity and accessibility for customers, including via interpreter services, new provisions for deceased estates, broadening the definition of financial difficulty, and enhanced protections for loan guarantors.   ASIC sought to ensure there was no diminishment of key Code protections, including the requirement to act with the care and skill of a diligent and prudent banker for consumer borrowers and their guarantors. Important provisions regarding the handling of consumer complaints and ensuring the robust oversight of the Code by the Banking Code Compliance Committee have also been retained, including by a new provision that commits subscribing banks to be bound by their obligations under the Banking Code Compliance Committee Charter. ASIC Chair Joe Longo said while there are several key improvements in the new Code, it was not the final word in customer-focussed banking. ‘Banks have a significant impact on our lives and Australians and ASIC rightly have high expectations of them,’ Mr Longo said. ‘ASIC’s review has been focused on ensuring this Code can make a difference in the day-to- day practice of the banking sector and through that, good customer outcomes.’ In coming weeks, ASIC will also release reports on Better Banking for Indigenous Australians, credit card offerings, and scam detection, prevention and response. ‘The Code and reports like these are a call for banks to continuously look at how they should be putting the customer front and centre. ASIC expects the ABA to continue working with its members to consider opportunities to improve consumer outcomes through data insights, including the identification of consumers experiencing vulnerability and customers identifying as First Nations consumers. ‘We look forward to following the implementation of the Code and seeing its subscribers hold themselves to high standards of implementation and compliance,’ Chair Longo said. ASIC’s decision to approve the new Banking Code of Practice follows an independent review of the code in 2021, public consultation by ASIC on a revised code from November 2023 to January 2024 and engagement with the ABA, consumer groups and other interested stakeholders. The February 2025 Banking Code of Practice will shortly be made available on the ABA’s website. The new Code will commence from 28 February 2025. Background ASIC previously approved the Code, as a whole, in December 2019 and most recently approved updates in January 2021. The Code is owned and developed by the ABA. ASIC does not have a role in enforcing or monitoring Code compliance. In approving the Code, ASIC considered that: the rules in the Code are binding on the ABA's members and form part of the contracts between banks and their customers for relevant banking services and guarantees, the Code was developed and reviewed in a transparent way, which involved consultation with relevant stakeholders, including consumer and small business groups, and the Code is supported by effective administration and compliance mechanisms. The Banking Code Compliance Committee will continue to have oversight of banks' Code compliance. They can also require banks' cooperation with their monitoring and investigations, and apply a range of sanctions for non-compliance with Code provisions.   Downloads ASIC Corporations (Approval of February 2025 Banking Code of Practice) Instrument 2024/523 ASIC Corporations (Revocation of Approval of March 2020 Banking Code of Practice) Instrument 2024/522 Explanatory Statement

The acquisition sees Saudi Tadawul Group Holding Company become the joint largest shareholder in DME Holdings Limited, the parent company of Dubai Mercantile Exchange (DME), alongside CME Group, through the acquisition of a mix of new and existing shares. DME will be rebranded as the Gulf Mercantile Exchange (GME) to reflect its position as the key regional commodities exchange in the Middle East. Completion of the acquisition follows receipt of all regulatory approvals, including the Dubai Financial Services Authority, as well as the satisfaction of other customary commercial conditions.   Further to the announcement made on 18 January 2024 with respect to a binding agreement to acquire a 32.6% strategic stake in DME Holdings Limited, Saudi Tadawul Group Holding Company (the Group), a leading diversified capital markets group in the MENA region, is pleased to announce that it has completed the acquisition in DME Holdings Limited, one of the leading international commodities exchanges.  As a result of the transaction, the Group is the joint largest shareholder in DME Holdings Limited alongside CME Group, with other shareholders including the Oman Investment Authority and Dubai Holding as well as global financial and commercial industry leaders. Consequently, DME will be rebranded as the GME. The investment from the Group represents a significant opportunity to leverage world-class capabilities and expertise, accelerating GME’s growth as a regional commodities leader that is well-positioned to capture global commodity demand. It will support a strategic move towards leveraging the Middle East’s geographic proximity to both key commodity production hubs and end-markets, with GME serving as a bridge between production and end-markets. Furthermore, the partnership will enable GME to capture demand for energy, metals, and agricultural commodity markets and support the ongoing global transition to a sustainable economy through the launch of next-generation derivatives contracts

The results of the Federal Reserve Board's annual bank stress test showed that while large banks would endure greater losses than last year's test, they are well positioned to weather a severe recession and stay above minimum capital requirements. Additionally, the Board published aggregate results from its first exploratory analysis, which will not affect bank capital requirements. "This year's stress test shows that large banks have sufficient capital to withstand a highly stressful scenario and meet their minimum capital ratios," Vice Chair for Supervision Michael S. Barr said. "While the severity of this year's stress test is similar to last year's, the test resulted in higher losses because bank balance sheets are somewhat riskier and expenses are higher. The goal of our test is to help to ensure that banks have enough capital to absorb losses in a highly stressful scenario. This test shows that they do." The Board's stress test is one tool to help ensure that large banks can support the economy during downturns. The test evaluates the resilience of large banks by estimating their capital levels, losses, revenue and expenses under a single hypothetical recession and financial market shock, using banks' data as of the end of last year. The individual results from the stress test inform a bank's capital requirements to help ensure a bank could survive a severe recession and financial market shock. All 31 banks tested remained above their minimum common equity tier 1 (CET1) capital requirements during the hypothetical recession, after absorbing total projected hypothetical losses of nearly $685 billion. Under stress, the aggregate CET1 capital ratio—which provides a cushion against losses—is projected to decline by 2.8 percentage points, from 12.7 percent to 9.9 percent. While this is a greater decline than last year's, it is within the range of recent stress tests. This year's hypothetical scenario is broadly comparable to last year's scenario. It includes a severe global recession with a 40 percent decline in commercial real estate prices, a substantial increase in office vacancies, and a 36 percent decline in house prices. The unemployment rate rises nearly 6-1/2 percentage points to a peak of 10 percent, and economic output declines commensurately. With the scenario relatively unchanged from last year, there are three main factors that explain the larger capital decline in this year's test: Substantial increases in banks' credit card balances combined with higher delinquency rates have resulted in greater projected credit card losses; Banks' corporate credit portfolios have become riskier, partly reflected in banks' downgrading of their own loans, resulting in higher projected corporate losses; and Higher expenses and lower fee income in recent years, resulting in less projected income to offset losses.   The nearly $685 billion in total projected losses includes $175 billion in credit card losses, $142 billion in losses from commercial and industrial loans, and nearly $80 billion in losses from commercial real estate. The disclosure document includes additional information about losses, including firm-specific results and figures. The Board also conducted an exploratory analysis, including two funding stresses to all banks tested and two trading book stresses to only the largest and most complex banks. The exploratory analysis is distinct from the stress test, exploring additional hypothetical risks to the broader banking system. The two funding stresses include a rapid repricing of deposits, combined with a more severe and less severe recession. Under each element, large banks would remain above minimum capital requirements in aggregate, with capital ratio declines of 2.7 percentage points and 1.1 percentage points, respectively. Under the two trading book stresses, which included the failure of five large hedge funds under different market conditions, the largest and most complex banks are projected to lose between $70 billion and $85 billion. The results demonstrated that these banks have material exposure to hedge funds but that they can withstand different types of trading book shocks. 2024 Federal Reserve Stress Test Results (PDF) Exploratory Analysis of Risks to the Banking System: Summary of Results (PDF) Statement on 2024 Stress Test Results by Vice Chair for Supervision Michael S. Barr

MIAX Options and MIAX Emerald Options have increased the maximum valid bid/ask differentials for Market Makers for certain symbols traded on the Exchanges. The current Market Maker extended quote width requirements will remain in effect for an expanded period through Monday, September 30, 2024, unless withdrawn by the Exchange before that time.For additional information on the expanded bid/ask differentials, please refer to the following Regulatory Circulars: MIAX Options RC 2024-39 MIAX Emerald Options RC 2024-40   Direct questions to the Regulatory Department at Regulatory@miaxglobal.com or (609) 897-7309.

The Securities and Exchange Commission (SEC) and Nigerian Exchange Group Plc (NGX Group) have reaffirmed their dedication to the comprehensive digitisation of the capital market, aligning with the transformation strategy outlined in the revised Capital Market Masterplan. The announcement came during a press briefing and stakeholder engagement session held at the Nigerian Exchange Group House in Lagos on Wednesday, 26 June 2024. Both organisations detailed their collaborative efforts to develop a digital solution aimed at transforming the primary market equity capital-raising process, with a focus on public offers and rights issues. Subject to SEC approval, this innovative platform represents a significant advancement in digitising the capital raising process for Issuers. Stakeholders are expected to benefit from enhanced efficiency, streamlined due diligence capabilities, ease of use and accessibility, faster information dissemination, and seamless compliance with regulatory requirements, among other features. Dr. Emomotimi Agama, Director-General of SEC, addressed stakeholders, stating: "I would like to commend NGX Group and all partners on this development. This digital transformation initiative is a testament to our shared commitment to fostering an innovative, efficient, and reliable capital market, embedded in the Capital Market Masterplan. By leveraging technology, we can attract the younger generation of investors, enhance regulatory oversight and create a world-class market. This digitisation will play a crucial role in setting a new standard for capital raising in Nigeria and enable the capital market support the achievement of the US$1 trillion economy target of the current administration." Temi Popoola, Group Managing Director/Chief Executive Officer of NGX Group, emphasised the platform's significance, stating, "This platform marks a pivotal moment in the evolution of the Nigerian capital market. With the support of the regulator and our stakeholders, we have developed an end-to-end digitised market infrastructure platform for distributing financial products, in this case public offers and rights issues. I can assure the investing public that robust payment systems, comprehensive Know Your Customer protocols, and strong fraud and risk management measures are fully integrated, also ensuring standard capital market intermediation is upheld without compromise." The digital platform aims to boost retail participation in the capital market, promote financial inclusion, and further deepen the pool of available capital. As banks seek to meet their updated minimum capital requirements through the primary markets, SEC and NGX Group have pledged to ensure an end-to-end streamlined process to assist banks and other issuers in achieving their business goals. The collaborative effort between SEC and NGX Group marks a significant step forward in the modernisation of Nigeria's capital market infrastructure, promising to enhance efficiency, transparency, and accessibility for all market participants.

The Office of the Comptroller of the Currency (OCC) reported on the performance of first-lien mortgages in the federal banking system during the first quarter of 2024. The OCC Mortgage Metrics Report, First Quarter 2024 showed that 97.4 percent of mortgages included in the report were current and performing at the end of the quarter, an increase from the 97.2 percent in fourth quarter 2023, and a decrease from the 97.6 percent a year ago. The percentage of seriously delinquent mortgages—mortgages that are 60 or more days past due and all mortgages held by bankrupt borrowers whose payments are 30 or more days past due—decreased from the previous quarter and has trended down since the first quarter of 2022. Servicers initiated 7,408 new foreclosures in the first quarter of 2024, a decrease from the previous quarter and from a year earlier. Servicers completed 7,926 modifications during the first quarter of 2024, a 7.4 percent increase from the previous quarter’s 7,382 modifications. Of these 7,926 modifications, 6,991, or 88.2 percent, were “combination modifications”—modifications that included multiple actions affecting the affordability and sustainability of the loan, such as an interest rate reduction and a term extension. The first-lien mortgages included in the OCC’s quarterly report comprise 21.4 percent of all residential mortgage debt outstanding in the United States or approximately 11.5 million loans totaling $2.8 trillion in principal balances. This report provides information on mortgage performance through March 31, 2024, and is available on the OCC’s website. Related Link OCC Mortgage Metrics Report, First Quarter 2024 (PDF)

The Justice Department announced today that it has reached an agreement with Low Taek Jho, also known as Jho Low, members of his family, and trust entities Low established (collectively, the “Low Parties”) that resolves two civil forfeiture cases. The department previously brought the cases against assets that it alleges were acquired by Low and his family using funds allegedly embezzled from 1Malaysia Development Berhad (1MDB), Malaysia’s sovereign investment development fund. The Low Parties have also agreed to cooperate in the transfer to Malaysia of certain other assets located in Hong Kong, Switzerland, and Singapore that are linked to 1MDB funds. Under the agreement, the department will coordinate with foreign partners to facilitate the liquidation and return of these assets to Malaysia.   According to the civil forfeiture complaints, from 2009 through 2015, more than $4.5 billion in funds belonging to 1MDB were allegedly misappropriated by high-level officials of 1MDB and their associates, including Low, through a criminal conspiracy involving international money laundering and bribery. 1MDB was created by the government of Malaysia to promote economic development in Malaysia through global partnerships and foreign direct investment. Its funds were intended to be used to improve the well-being of the Malaysian people. The agreement resolves the civil forfeiture action against a luxury apartment in Paris and artwork located in Switzerland by artists Andy Warhol and Claude Monet, which Low purchased for approximately $35 million in total. In addition, parties agreed to return to Malaysia real property and cash in bank accounts valued at approximately $67 million located in Hong Kong, Switzerland, and Singapore. The United States will release a total of $3.5 million to the trust entities to pay for legal fees and costs associated with the properties. Under the agreement, none of these fees may be returned to Low or his family members.  Prior to this settlement, in total, the United States has returned or assisted in the return to Malaysia of over $1.4 billion in assets associated with the international money laundering, embezzlement, and bribery scheme. Low separately faces charges in the Eastern District of New York for allegedly conspiring to launder billions of dollars embezzled from 1MDB and for conspiring to violate the Foreign Corrupt Practices Act by allegedly paying bribes to various Malaysian and Emirati officials, and in the District of Columbia for allegedly conspiring to make and conceal foreign and conduit campaign contributions during the United States presidential election in 2012. This agreement does not release any entity or individual from filed or potential criminal charges. The FBI’s International Corruption Squads in New York City and Los Angeles and IRS Criminal Investigation are investigating the case.   Trial Attorneys Barbara Levy, Sean Fern, Jonathan Baum, and Joshua Sohn of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS) and Assistant U.S. Attorney Jonathan Galatzan for the Central District of California are prosecuting the case, with significant assistance from the Justice Department’s Office of International Affairs and MLARS’ Program Management Staff. The Justice Department also appreciates the significant assistance provided over the course of this investigation by the Attorney General’s Chambers of Malaysia, the Royal Malaysia Police, the Malaysian Anti-Corruption Commission, the Attorney-General’s Chambers of Singapore, the Singapore Police Force-Commercial Affairs Department, the Office of the Attorney General and the Federal Office of Justice of Switzerland, and French authorities. The Kleptocracy Asset Recovery Initiative is led by a team of dedicated prosecutors in MLARS, in partnership with federal law enforcement agencies, and often with U.S. Attorneys’ Offices, to forfeit the proceeds of foreign official corruption. Individuals with information about possible proceeds of foreign corruption located in or laundered through the United States should contact federal law enforcement or send an email to kleptocracy@usdoj.gov or https://tips.fbi.gov/.

The European Banking Authority (EBA) welcomes the entry into force of the new EU framework that will transform how Europe tackles money laundering and terrorist financing. The EBA is proud to be paving the way for the establishment of the new anti-money laundering and countering the financing of terrorism authority (AMLA) and is committed to facilitating a smooth transition, and making the EU a hostile place for financial crime. Since 2020, the EBA has been leading, coordinating and monitoring the EU financial sector’s fight against money laundering (ML) and terrorist financing (TF). The new legislative framework marks a significant step forward in the EU’s fight against financial crime, with a harmonised and single AML/CFT rulebook, and the establishment of AMLA, a dedicated EU anti-money laundering authority. The EBA will retain its AML/CFT powers and mandates until December 2025 to minimise disruption and provide continuity, and it will also continue working closely with AMLA going forward. In particular, after transferring the powers that are specific to AML/CFT to AMLA, the EBA will remain responsible for addressing ML/TF risk across its prudential remit. Since its inception, the EBA has been working to ensure that financial institutions and their supervisors apply effective AML/CFT controls wherever they operate in the EU, providing a solid foundation for the new regime. The European Commission has asked the EBA to provide its technical advice on important aspects of the future EU AML/CFT framework to ensure that AMLA can begin to operate efficiently and effectively as of its establishment. Over the course of 2024 and in 2025, the EBA’s priorities in the area of AML/CFT will focus on the following aspects: a methodology for selecting financial institutions for direct EU-level AML/CFT supervision; a common risk assessment methodology; information necessary to carry out customer due diligence; criteria to determine the seriousness of a breach of AML/CFT provisions.   The EBA will be providing its advice to the Commission in October 2025. Throughout the transition phase, the EBA will also support national competent authorities getting ready for AMLA and will coordinate with the European Commission’s AMLA taskforce, which will be responsible for the establishment and initial operations of AMLA. Background In 2024, the co-legislators agreed on a new AML/CFT package to strengthen the EU’s fight against financial crime. The Regulation establishing AMLA (2024/1620), the Regulation establishing a single AML/CFT Rulebook (2024/1624) and the revision of the AML/CFT Directive (AMLD6 - 2024/1640) were published in the Official Journal of the European Union on the 19 of June. Once established, AMLA will directly supervise the cross-border credit and financial institutions exposed to highest money laundering and terrorist financing (ML/TF) risk. It will also draft AML/CFT standards and guidelines, oversee AML/CFT supervisors, and coordinate Financial Intelligence Units (FIUs). In accordance with Article 103 and 108 of Regulation 2024/1620, the EBA will transfer its AML/CFT mandates, powers and resources to AMLA by the end of 2025. Documents Getting ready for AMLA: the EBA’s contribution to the new AML/CFT regime (667.71 KB - PDF) Download Related content Topic Anti-Money Laundering and Countering the Financing of Terrorism

CME Group, the world's leading derivatives marketplace, and Chicago Mayor Brandon Johnson have awarded 25 City Colleges of Chicago graduates with a $5,000 scholarship towards their four-year degrees. This is the eighth consecutive year CME Group is recognizing the academic achievements of Star Scholars at City Colleges of Chicago to increase higher education opportunities for students with diverse backgrounds, building on more than three decades and more than $2 million in support for Chicago students. "We are thankful to the CME Group for their partnership and for supporting our City Colleges of Chicago Star Scholars as they work to achieve their dream of earning a bachelor's degree," said Mayor Brandon Johnson. "By investing in our young people and providing them with the opportunity to continue their educational journeys, CME Group is setting a powerful example for the rest of the business community." "We're pleased to continue to invest in the Star Scholars who are dedicated to their commitment to pursue a four-year degree," said CME Group Chairman and Chief Executive Officer Terry Duffy. "The Star Scholarship provides the future leaders in Chicago with opportunities to discover career opportunities in finance and other industries." "CME Group's scholarship is helping our Star Scholars shape their life into what they want it to be. After a debt-free college experience at City Colleges, CME Group is giving these Star Scholars more choices and easing the financial burden as they continue to pursue a Bachelor's degree," said Chancellor Juan Salgado, City Colleges of Chicago. The Star Scholarship program at City Colleges of Chicago has helped over 16,500 Chicago Public Schools and Big Shoulders Fund high school graduates pursue their associate degree debt-free. During the academic year 2023-2024, 932 Star Scholars completed their associates degree, making up over one-fourth of the graduating class of 2024. Scholarships support these students in achieving a bachelor's degree in accounting, business management, math, computer science, finance or economics at one of the Chicago Star Partner colleges and universities. The notable 25 CME Group Star Partnership Mayoral Scholarship recipients were selected from 343 Star Scholars who completed their associate degree in Spring 2024 with a GPA of 3.0 or higher. Notably, 100% of this year's recipients intend to transfer to one of the 26 Star university partners in Fall 2024 to pursue a bachelor's degree.  CME Group joined the Star Scholars movement in 2017 after a long partnership with the City of Chicago on initiatives to help make college more affordable and attainable for CPS graduates. Dating back to 1986 when CME Group and the City of Chicago launched the CME Group Mayoral Award for Student Achievement, CME Group has supported high-achieving CPS students in pursuit of college degrees, resulting in thousands of annual scholarships and more than $2 million of financial support. This year's award recipients were recognized by Chicago Mayor Brandon Johnson, City Colleges of Chicago's Chancellor Juan Salgado and CME Group Chairman and Chief Executive Officer Terry Duffy at a celebratory luncheon and education seminar on Wednesday, June 26, 2024 at CME Group headquarters in Chicago. For more information on the Star Scholarship at City Colleges of Chicago, visit www.ccc.edu/starscholarship.

Today, ACER releases its report on the Austrian gas transmission tariffs proposed for 2025 by E-Control, the National Regulatory Authority (NRA) of Austria. The proposed methodology takes into account the changes in network patterns resulting from the 2022 energy crisis. What does ACER recommend? ACER analysed the information provided by E-Control and assessed the compliance of the proposed methodology against the requirements of the Network Code on Harmonised Transmission Tariff Structures (NC TAR). Based on this analysis, ACER provides the following recommendations to the NRA: Evaluate the network topology and use patterns. For instance, the NRA should take into account the distance gas flows need to cover to supply different network points into the methodology. Explore the methodologies that best align with the network’s characteristics and usage, including selecting appropriate cost drivers and other instruments such as flow scenarios. Compare the results of the Capacity Cost Allocation (CAA) assessment to identify the most suitable methodologies for the Austrian transmission network. The NRA should investigate whether high CAA outcomes indicate potential cross-subsidisation between intra-system and cross-system network usage.   What are the next steps? E-Control adopted the motivated decision on the reference price methodology on 31 May 2024, after receiving preliminary input from ACER. Following the publication of this report, E-Control shall consider ACER’s recommendations in its next tariff consultation, scheduled for completion by the end of 2024.  Read more.

I would like to thank the International Swaps and Derivatives Association (ISDA) for the invitation to speak to you today.1 I appreciate the opportunity to engage with you on matters that affect the swaps and derivatives industry, specifically how we can best consider and address the potential consequences of bank capital reform measures, both in the United States and around the world. Before doing so, I will share my views on the economy and monetary policy in the United States. Update on the Economy and Monetary Policy OutlookOver the past two years, the Federal Open Market Committee (FOMC) has significantly tightened the stance of monetary policy to address high inflation. At our meeting earlier this month, the FOMC voted to continue to hold the federal funds rate target range at 5-1/4 to 5-1/2 percent and to continue to reduce the Federal Reserve's securities holdings. After seeing considerable progress on slowing inflation last year, we have seen only modest further progress this year. The 12-month measures of total and core personal consumption expenditures (PCE) inflation have moved roughly sideways or slightly down since December and remained elevated at 2.7 percent and 2.8 percent, respectively, in April. The consumer price index (CPI) report for May showed 12-month core CPI inflation slowing to 3.4 percent from 3.6 percent in April. However, with average core CPI inflation this year through May running at an annualized rate of 3.8 percent, notably above average inflation in the second half of last year, I expect inflation to remain elevated for some time. The recent pickup in inflation in the first several months of 2024 was evident across many goods and services categories, suggesting that inflation was temporarily lower in the latter half of last year. Prices continue to be much higher than before the pandemic, which is weighing on consumer sentiment. Inflation has hit lower-income households hardest since food, energy, and housing services price increases far outpaced overall inflation throughout this episode. Economic activity increased at a strong pace last year but appears to have moderated early this year. First-quarter gross domestic product growth was slower than in the second half of last year, though private domestic final purchases continued to rise at a solid pace. Continued softness in consumer spending and weaker housing activity early in the second quarter also suggest less momentum in economic activity so far this year. Payroll employment continued to rise at a solid pace in April and May, though slightly slower than in the first quarter, partly reflecting increased immigrant labor supply. Despite some further rebalancing between supply and demand, the labor market remains tight. The unemployment rate edged up to 4.0 percent in May, while the number of job openings relative to unemployed workers declined further to near its pre-pandemic level. Labor force participation dropped back to 62.5 percent in May, which suggests no further improvement in labor supply along this margin, as labor force participation among those aged 55 and older has been persistently low. At its current setting, our monetary policy stance appears to be restrictive, and I will continue to monitor the incoming data to assess whether monetary policy is sufficiently restrictive to bring inflation down to our target. As I've noted recently, my baseline outlook continues to be that inflation will decline further with the policy rate held steady. And should the incoming data indicate that inflation is moving sustainably toward our 2 percent goal, it will eventually become appropriate to gradually lower the target range for the federal funds rate to prevent monetary policy from becoming overly restrictive. However, we are still not yet at the point where it is appropriate to lower the policy rate, and I continue to see a number of upside risks to inflation. First, much of the progress on inflation last year was due to supply-side improvements, including easing of supply chain constraints; increases in the number of available workers, due in part to immigration; and lower energy prices. It is unlikely that further improvements along this margin will continue to lower inflation going forward as supply chains have largely normalized; the labor force participation rate has leveled off in recent months below pre-pandemic levels; and an open U.S. immigration policy over the past few years, which added millions of new immigrants in the U.S., may become more restrictive. Geopolitical developments could also pose upside risks to inflation, including the risk that spillovers from regional conflicts could disrupt global supply chains, putting additional upward pressure on food, energy, and commodity prices. There is also the risk that the loosening in financial conditions since late last year, reflecting considerable gains in equity valuations, and additional fiscal stimulus could add momentum to demand, stalling any further progress or even causing inflation to reaccelerate. Finally, there is a risk that increased immigration and continued labor market tightness could lead to persistently high core services inflation. Given the current low inventory of affordable housing, the inflow of new immigrants to some geographic areas could result in upward pressure on rents, as additional housing supply may take time to materialize. With labor markets remaining tight, wage growth has been elevated at around or above 4 percent, still higher than the pace consistent with our 2 percent inflation goal, given trend productivity growth. In light of these risks, and the general uncertainty regarding the economic outlook, I will continue to watch the data closely as I assess the appropriate path of monetary policy. The frequency and extent of data revisions over the past few years make the task of assessing the current state of the economy and predicting how the economy will evolve even more challenging. I will remain cautious in my approach to considering future changes in the stance of policy. It is important to note that monetary policy is not on a preset course. In my view, we should consider a range of possible scenarios that could unfold when considering how the FOMC's monetary policy decisions may evolve. My colleagues and I will make our decisions at each FOMC meeting based on the incoming data and the implications for and risks to the outlook. While the current stance of monetary policy appears to be at a restrictive level, I remain willing to raise the target range for the federal funds rate at a future meeting should the incoming data indicate that progress on inflation has stalled or reversed. Restoring price stability is essential for achieving maximum employment over the longer run. Grappling with the Unintended Consequences of Bank Capital ReformI will turn now to the issue of bank capital reform, and the implications of adopting and implementing the Basel III "endgame" standards both in the United States and around the world. Considering capital and debt requirements in the aggregateCapital requirements are an important component of the prudential regulatory frameworks and interconnected banking and financial systems around the world. As you know, the U.S. has lagged our E.U. and U.K. counterparts in fully implementing the Basel III capital standards. In July 2023, the U.S. federal banking agencies issued a public consultation on implementing what the U.S. calls the Basel III "endgame" capital reforms.2 The response to the U.S. capital proposal has been overwhelmingly negative, including from a broad range of stakeholders. I have previously spoken at length about my concerns with the proposal, and as public commenters have reviewed it, they have identified additional areas of concern.3 In my view, the concerns are well-founded. The proposal acknowledged that the revisions, if implemented, would result in an estimated 20 percent aggregate increase in total risk-weighted assets across bank holding companies subject to the rule. Individual impacts would vary not only by firm, but also by business line. For any particular business line or product, the aggregate impact of the proposed capital changes could result in a more significant increase, depending upon the firm's characteristics. Consider the impact on business lines subject to the market risk capital rule. As noted in the proposal, the revisions to the market risk rule alone would increase risk-weighted assets from $430 billion to $760 billion for Category I and II firms, and from $130 billion to $220 billion for Category III and IV firms.4 Even this example ignores the additive capital increases from other aspects of the rule, such as the operational risk charge "overlay" that may separately result in a higher capital charge for the same business line, if that line is also generating fee income. The changes that may affect any particular financial product or service vary but could include impacts across all aspects of the proposal. For many of the derivatives and swaps activities in which banking entities engage, the aggregate impacts on different business lines could result from changes to the market risk rule, the calculation of credit valuation adjustments, and the treatment of securities financing transactions, among others. So far, what I have described are just the aggregate effects of capital increases that would appear within the four corners of the U.S. Basel III endgame proposal. We know that these changes do not exist in a vacuum. A particular firm can also be impacted by changes to the global systemically important bank (G-SIB) surcharge and long-term debt requirements. The firm's business planning would also need to consider existing requirements, such as leverage and "total loss-absorbing capacity" requirements. By design, these elements are intended to be complementary, often seeking to capture different risks, operate as "backstop" capital standards, promote resiliency, and be available for recapitalization in resolution. Despite the goal that the capital framework operates in a holistic fashion, the rulemaking process in the United States has taken a fragmented approach. This process has seemed to ignore the interrelationships of the requirements. We cannot fully understand the intended and unintended consequences of any regulatory reform, including capital reform, without using a broader lens to consider the interconnections and interrelationships among different capital and debt requirements that apply in the banking system. This narrow approach to rulemaking—focusing on a specific reform, without considering the broader framework—has created a corresponding narrowness when we think about the consequences of regulatory reform. This challenge has been particularly acute in the capital and debt space simply because there are so many requirements that are intended to operate in a complementary way, and that in the aggregate may overlap or conflict, generating unintended consequences. The Federal Reserve has expressly acknowledged the complementary nature of these requirements, for example in noting that some leverage ratio requirements operate as a backstop to risk-based capital requirements.5 And yet, the discussions of costs and benefits of reform tend to disregard the aggregate impact across rules, even when related reforms are proposed at the same time and the aggregate impacts can be identified and assessed.6 Considering direct and indirect consequencesWith respect to the Basel III "endgame" reforms, much of the discussion of consequences has focused on the direct consequences to the availability and price of credit, resulting from the proposed changes to risk-weighted assets. These issues resonate with households and businesses. Everyone understands the direct impact on their own household finances or their business's bottom line from higher costs of lending. Often overlooked are the direct and indirect consequences of capital reforms on financial products such as derivatives and swaps. These products can seem exotic to the public, but we know they play a significant role in the financial system and the broader economy, including commodities price hedging by end-users, such as agricultural producers. And it is certainly foreseeable that proposed capital reforms could impair market liquidity. We also know that regulatory reforms—especially capital reforms with a direct link to particular products, services, and markets—can cause broader changes in firm behavior. Some banks may raise prices on particular products based on their internal allocation of increased capital charges. And some banks may discontinue certain products or services that cannot be offered in a cost-effective way. These choices will impact the competitive landscape into the future, and in some cases—such as where significant economies of scale are required to offer a product or service—the end result may be that some banks exit certain product markets, resulting in increased concentration and higher prices for households and businesses. While I am acutely aware of our need to consider these costs and price effects, I am also aware that regulators sitting in Washington, D.C. are not well-equipped to query and understand these real-world consequences of reform. In my view, the commenter feedback we have received on these issues has helped to illuminate these consequences. My hope is that we take them into account when moving forward to implement the Basel III endgame standards. The path forwardI do see a path forward to implement Basel III, one that not only addresses the overall calibration and international consistency and comparability, but also makes more granular changes that will improve the effectiveness and efficiency of the rule. In terms of this path, I will briefly outline what I see as necessary procedural steps, while also providing a non-exclusive list of substantive changes that I believe are necessary to improve the proposal. In October 2023, the Federal Reserve initiated a data collection to gather information from the banks affected by the U.S. proposal. I am hopeful that these data will allow regulators to better understand the proposal's impact and identify areas for revision. Any next step in this rulemaking process will require broad and material changes. It should also be accompanied by a data-driven analysis of the proposal and be informed by the significant public input received during the rulemaking process. This should assist policymakers in creating a path to improve the rulemaking. My hope is that policymakers pay closer attention to the balance of costs and benefits while considering the direct and indirect consequences of the capital reform. I have previously identified a number of specific areas and procedural steps that would be necessary to address in any future efforts to revise this proposal. Some of these issues include addressing redundancy in the capital framework (for example, between the new market risk and operational risk requirements, and the stress capital buffer); recalibrating the market risk rule specifically, where some of the biggest outlier increases in risk-weighted assets would appear; adopting a more reasonable treatment for non-interest and fee-based income through the operational risk requirements, which could deter banks from diversifying revenue streams, even though such diversification can enhance an institution's stability and resilience; reviewing the impact of capital requirements, including leverage ratio requirements, on U.S. Treasury market intermediation and liquidity; incorporating tailoring in the applicability of Basel III capital reforms, specifically looking at whether each element of the Basel III capital proposal is appropriate for non-G-SIB firms that are not internationally active; and re-proposing the Basel III standards to address the broad and material reforms that I believe should be included in any final rule, including granular changes to address the specific issues raised by commenters, as appropriate.7   While these steps would be a reasonable starting place, they are not a replacement for a data-driven analysis and a careful review of the comments submitted. This would result in a better proposal that includes not only changes to address these concerns, but also the many other concerns raised by the public. Closing ThoughtsIt has been a pleasure speaking with you today. Your industry plays an important role not only in the U.S. economy, but also in the broader world economy. It is imperative that regulators not lose sight of the practical implications of regulatory reform, even as the U.S. considers the next steps in moving forward to adopt the final Basel III capital reforms. 1. The views expressed here are my own and not necessarily those of my colleagues on the Federal Open Market Committee or the Board of Governors of the Federal Reserve System.  2. Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation (FDIC), and Office of the Comptroller of the Currency (OCC), "Agencies Request Comment on Proposed Rules to Strengthen Capital Requirements for Large Banks," news release, July 27, 2023; OCC, Board of Governors of the Federal Reserve System, and FDIC, "Regulatory Capital Rule: Large Banking Organizations and Banking Organizations with Significant Trading Activity (PDF)," 88 Fed. Reg. 64,028–64,343 (September 18, 2023).  3. See dissenting statement, "Statement by Governor Michelle W. Bowman" on the proposed rule to implement the Basel III endgame agreement for large banks, news release, July 27, 2023; Michelle W. Bowman, "Remarks on the Economy and Prioritization of Bank Supervision and Regulation (PDF)" (speech at the New York Bankers Association's Financial Services Forum, Palm Beach, Florida, November 9, 2023); Michelle W. Bowman, "The Path Forward for Bank Capital Reform (PDF)" (speech at Protect Main Street, sponsored by the Center for Capital Markets at the U.S. Chamber of Commerce, Washington, D.C., January 17, 2024).  4. OCC, Board of Governors of the Federal Reserve System, and FDIC, Notice of Proposed Rulemaking, "Regulatory Capital Rule: Large Banking Organizations and Banking Organizations with Signfiicant Trading Activity," 88 Fed. Reg. 64,028, 64,168, table 11 (September 18, 2023).  5. See, e.g., Board of Governors of the Federal Reserve System, Interim Final Rule and Request for Comment, "Temporary Exclusion of U.S. Treasury Securities and Deposits at Federal Reserve Banks from the Supplementary Leverage Ratio (PDF)," 85 Fed. Reg. 20,578, 20,579 (April 14, 2020) ("This interim final rule does not affect the tier 1 leverage ratio, which will continue to serve as a backstop for all banking organizations subject to the capital rule.").  6. See, e.g., OCC, Board of Governors of the Federal Reserve System, and FDIC, Notice of Proposed Rulemaking, "Long-Term Debt Requirements for Large Bank Holding Companies, Certain Intermediate Holding Companies of Foreign Banking Organizations, and Large Insured Depository Institutions (PDF)," 88 Fed. Reg. 64,524, 64,551, n. 97 ("The agencies recognize that their Basel III reforms proposal would, if adopted, increase risk-weighted assets across covered entities. The increased risk-weighted assets would lead mechanically to increased requirements for LTD under the LTD proposal. The increased capital that would be required under the Basel III proposal could also reduce the cost of various forms of debt for impacted firms due to the increased resilience that accompanies additional capital (which is sometimes referred to as the Modigliani–Miller offset). The size of the estimated LTD needs and costs presented in this section do not account for either of these potential effects of the Basel III proposal.") (emphasis added). Even when the agencies estimate the effect of a proposal on other rules, the impact analysis tends to be narrow, such as focusing on the estimated shortfall that would be created by the interrelated rules and may overlook other pending rules. See, e.g., OCC, Board of Governors of the Federal Reserve System, and FDIC, "Regulatory Capital Rule: Large Banking Organizations and Banking Organizations with Significant Trading Activity (PDF)," 88 Fed. Reg. at 64,171 (noting that the proposed revisions to the calculation of risk-weighted assets under the Basel III endgame proposal would affect the risk-based TLAC and LTD requirements applicable to Category I bank holding companies but disregarding the pending proposal that would expand long-term debt requirements to a broader set of firms).  7. See dissenting statement, "Statement by Governor Michelle W. Bowman" on the proposed rule to implement the Basel III endgame agreement for large banks, news release, July 27, 2023; Michelle W. Bowman, "Remarks on the Economy and Prioritization of Bank Supervision and Regulation (PDF)"; Michelle W. Bowman, "The Path Forward for Bank Capital Reform (PDF)." 

Boerse Stuttgart Group is the only exchange operator in Europe to have successfully applied for the second wave of the European Central Bank's (ECB) EU-wide tests, in which the settlement of blockchain-based financial transactions against central bank money is being explored. With its partners Commerzbank, Deutsche Bank, DZ Bank, LBBW, Bankhaus Metzler and V-Bank, Boerse Stuttgart Group tests the settlement of exchange transactions with tokenized securities against euros for the first time. The banks act as trading and settlement participants and are directly connected to the new blockchain-based settlement solution of Boerse Stuttgart Group. The Deutsche Bundesbank is providing its trigger solution for the test, which connects blockchain transactions with the traditional euro payment system. Boerse Stuttgart Group settles secondary market transactions of tokenized securities directly between trading participants on the blockchain – within minutes, without a central securities depository and against payments in central bank money. This innovative, end-to-end delivery-versus-payment process is particularly efficient, enables peer-to-peer settlement and reduces the number of intermediaries and counterparty risks. "We are a pioneer in digital assets, and we are convinced of the benefits of blockchain and tokenization for the European securities markets. That's why we want to shape the future digital European market infrastructure for tokenized securities. In the EU, we are taking the first important step with the ECB tests. In Switzerland, we are even further ahead: BX Digital, our exchange for the trading and settlement of tokenized securities, is set to launch in the second half of 2024. It is fully regulated and will use our self-developed, blockchain-based settlement solution," says Dr Matthias Voelkel, CEO of Boerse Stuttgart Group. Until November, Boerse Stuttgart Group will implement its use case in a test environment with the participating banks. The aim is to gain practical insights into the scalability, efficiency and speed of the settlement process involving central bank money. On behalf of Boerse Stuttgart Group, its broker EUWAX AG and its crypto custodian Boerse Stuttgart Digital Custody are also involved in the ECB tests.

DiffusionData, the pioneer and leader in real-time data streaming, today announced a strategic partnership with Options Technology, a trailblazer in capital markets infrastructure. To celebrate the launch of the partnership, Options and DiffusionData will host Belfast’s first Capital Markets Community Meet-Up. The event will bring together an ecosystem of market data, capital markets, and FinTech firms on Thursday, 27th June, for an evening of drinks, networking, and the latest insights from the Belfast Market Data Community. The meet-up takes place at the Jailhouse Belfast, 4 Joy's Entry from 6.30PM. The strategic partnership will enable an integration between DiffusionData’s real-time data distribution server, Diffusion, and Options’ consolidated data service. This will streamline the experience for mutual customers to deliver multi-asset class data in a controlled manner over any network, at internet scale, using market leading, web socket technology. The Diffusion framework is used by companies across the capital markets landscape to control the end-to-end flow of data, create personalized data streams and efficiently deliver data with patented bandwidth optimization, enabling clients to maximize the value of Options’ consolidated data service. Options facilitates trading at hundreds of venues worldwide with fully managed infrastructure and connectivity in conjunction with the firm’s private financial cloud services, combining hosting with direct market access, TCO reduction, and best-in-class resiliency and security. Danny Moore, President and CEO of Options, commented, “Our partnership with DiffusionData represents a significant advancement in our ability to deliver robust and scalable data solutions to our clients. By integrating Diffusion’s cutting-edge data streaming technology with our consolidated data service, we are not only enhancing data delivery but also empowering our clients to gain real-time insights and make informed decisions faster and more efficiently. This collaboration underscores our commitment to providing innovative and reliable infrastructure that meets the evolving needs of the capital markets.” Grethe Brown, CEO of DiffusionData, added, “We are excited to partner with Options, a recognized leader in capital markets infrastructure. By integrating our Diffusion framework with Options’ consolidated data service, we are providing clients with a powerful solution that combines real-time data streaming with unparalleled control and efficiency. This collaboration will enable users to harness the full potential of their data, delivering seamless and personalized data streams that drive better decision-making and operational performance. Together, we are setting a new standard for data delivery in the financial services industry.”