This week was probably the most impactful for everybody involved in business either in the EU or the UK. Everybody was expecting the EU to refuse the request from May and for Brexit to end in disaster.
However, many were relieved. There were other developments in the market but as always, Brexit was the most impactful one.
Let’ take a look at the most important market, legal and currency news of this week.
Societe Generale to lay off 1,600 staff
- 1 Societe Generale to lay off 1,600 staff
- 2 Plus500 suffers 82% loss in revenue for Q1
- 3 Nasdaq buys 37% of Oslo Bors
- 4 China turns sower against cryptocurrency mining
- 5 Estonian Regulator targeting banks with stricter guidelines
- 6 Nasdaq discloses information about upcoming regulations for Equities market
- 7 FCA & ASIC agree to co-operate after Brexit
- 8 Brexit is happening in October, not today
According to a Bloomberg report, thanks to a massive drop in revenue, the French banking giant is considering to let 1,600 employees go in order to compensate for the losses. 1,200 of these positions will be from the trading division, 750 of which will be from France.
Plus500 suffers 82% loss in revenue for Q1
The recent low volatility of the market for retail brokers has been devastating and Plus500 is a testimony to that. According to reports from the company, a nearly 82% drop in revenue was sighted in the first 3 months of 2019.
Thanks to the diminishing cryptocurrency and FX market, the brokerages have been taking heat from both the customers as well as the investors.
One small look at this KontoFX review confirms that the brokerages tend to ignore any other asset than FX and cryptocurrencies, as they are not as popular.
Because of this, they are reluctant to promote well-performing assets such as Bonds which are able to maintain stability. Because of all of this, the future of the market could indeed be in jeopardy.
Nasdaq buys 37% of Oslo Bors
Nasdaq, one of the largest exchanges in the world has made a large acquisition this week. Oslo Bors, one of the largest stock exchanges in the Nordics saw its 37% be sold to Nasdaq, through Nasdaq Nordic.
The regulator is requesting the purchase be approved by the Ministry of Finance. According to the report, Nasdaq has purchased almost 850,000 shares at a price of $18.60 per share.
China turns sower against cryptocurrency mining
After years of spearheading the mining business of cryptocurrencies, hosting the largest crypto exchanges, and overall benefiting the most from the digital assets, China has had enough fun with them.
According to their announcement, the cryptocurrencies had their fair share of popularity, but now they are unprofitable and useless to mine. Too much energy is being wasted, therefore the government may consider to ban the process completely and re-direct resources to new emerging markets.
However, this will only strengthen the market, as mining becomes even harder, and coins become scarce, therefore driving the prices upwards.
Estonian Regulator targeting banks with stricter guidelines
According to Andre Nomm’s speech on Wednesday, the country’s banks are still suffering from undesirable clients, which are reluctant to cover their debts, potentially leading to a massive default spree, bankrupting the banks. No government’s desire is to bail their banks out, it usually happens the other way around.
The banking issue has been relevant in Estonia for quite some time now. And this tightening of regulation comes right after the debacle that was Danske Bank.
Nasdaq discloses information about upcoming regulations for Equities market
According to Nasdaq, its recent publication of the “TotalMarkets” paper, will serve as a blueprint for the development of a new regulatory framework for the Equities market.
One of the most notable changes that the exchange wants to implement is the centralization of liquidity for small businesses by exempting them from UTPs. You can view the whole paper here.
FCA & ASIC agree to co-operate after Brexit
Two Memorandums of Understanding have been signed by the Financial Conduct Authority (UK) and the Australian Services and Investments Commission.
The MoU on trade repositories will ensure that the ASIC will have access to the UK’s data on derivatives contracts, which are essential for the regulator to conduct its duties.
The MoU on alternative investment funds is a replication of the amendment that the UK will have in its own AIFs post-Brexit.
Brexit is happening in October, not today
Theresa May managed to convince both Angela Merkel and Emanuel Macron to give the UK more time to prepare a deal for its inevitable exit. At this point, everybody was expecting that the EU will ignore May and just let Brexit finally happen. But as it seems, the EU is also at risk of loss from a no-deal Brexit. The deadline has been extended to 31th of October 2019.