The International Swaps and Derivatives Association and the Futures Industry Association have called for further refinements to the revised US bank capital framework, warning of potential negative effects on market liquidity, clearing capacity and derivatives intermediation. While the associations acknowledge improvements in the latest proposal, they argue that capital requirements should better reflect risk offsets and that the treatment of cross-product netting needs clarification.

The pound traded near its 2026 low as investors braced for Prime Minister Keir Starmer to set out a departure timetable, adding to UK political uncertainty. Traders are focused on whether Andy Burnham would loosen fiscal rules if he takes power, a prospect that could pressure gilts and sterling as markets already favor short positions against a resurgent dollar.

Bond traders are closely watching this week's personal spending data after Federal Reserve Chairman Kevin Warsh's recent comments on restoring price stability prompted a shift toward a more hawkish stance. Short-term Treasury yields surged last week as traders priced in a potential rate hike in 2026, following Warsh's first press conference.

Hong Kong is in talks with Chinese authorities to let mainland investors participate in local IPOs and expand cross-border investment channels after Beijing's crackdown on unauthorized offshore trading. Proposals include higher southbound quotas, lower thresholds for qualified investors and more eligible products, as officials try to bring outbound flows into a compliant framework while boosting market liquidity.

Ireland believes it can broker a deal this year to deepen Europe's capital markets during its EU presidency, with Taoiseach Micheal Martin saying there is already broad agreement on the plan. The initiative would centralize oversight of key financial entities under ESMA, aiming to reduce market fragmentation, mobilize savings into investment and improve Europe's competitiveness against the US and China.

Canada's Office of the Superintendent of Financial Institutions has lowered the domestic stability buffer for major banks to 3% from 3.5% to encourage lending and investment as the economy faces structural changes. The move is expected to reduce the common equity Tier 1 ratio for banks by half a percentage point and aims to support economic growth amid challenges such as slowing immigration and shifts in US trade policy.

EU banks have more time to prepare for high-risk AI reporting requirements after Brussels delayed a key part of the Artificial Intelligence Act, easing near-term pressure on risk and compliance teams. Chatbot transparency rules still take effect in August, requiring firms that deploy AI assistants to disclose their use to customers.

Regulators are increasingly integrating supervisory technology tools powered by artificial intelligence, data access and cloud infrastructure, according to a report from the International Organization of Securities Commissions. The report highlights the need for long-term workforce planning and notes challenges such as cyberrisks and funding constraints.

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Join the IA and ISDA to discuss the evolving regulatory framework governing the management of liquidity and leverage by Non-Bank Financial Institutions (NBFIs) and how this is impacting strategic collateral management operations and optimization. The event will also consider how developments in technology can be used to drive efficiencies in collateral management. Click here to register.

ISDA has launched the ISDA-Actrix US Treasury Repo Market Clearing Indicators in collaboration with Actrix. The indicators illustrate central clearing adoption in the US Treasury repo market. Sponsored cleared repo volumes are used as a proxy to monitor client participation in central clearing, a key objective of the US Securities and Exchange Commission's (SEC) US Treasury clearing mandate. The report will be published on a monthly basis.