Market Watch (May 25)
“On May 28, a new rule will go into effect that will affect almost every stock, bond, and ETF trade in U.S. markets,” requiring settlement within one day. Reducing failure to deliver (FTD) “risk is one of the reasons that industry players have been pushing to get to a T+1 settlement cycle since the 1990s, when the settlement cycle was still at T+5. Over the years, the U.S. has moved to a T+3 settlement cycle, then T+2 and now finally T+1.”
Tags: 1990s, Bond, Effect, ETF, Failure to deliver, May 28, Risk, Rule, Settlement cycle, Stock, T+1, T+2, T+3, T+5, Trade, U.S. markets
Bloomberg (November 10)
The Bank of Japan (BoJ) proved no match for the zero lower bound. “The Bank of Japan’s recent quarterly report says, in effect, that the central bank has done all it can do to raise growth and inflation, and that fiscal policy needs to step in and help.” The BoJ already “owns more than half of the ETF shares in the whole country” and is estimated to soon “be the biggest shareholder in 55 of the 225 companies in the Nikkei index.” Other central banks will follow Japan’s retreat. “The era of bold monetary policy experimentation that began with the global financial crisis is now drawing to a close.”
Tags: BOJ, Central banks, ETF, Fiscal policy, Global financial crisis, Growth, Inflation, Monetary policy, Nikkei, Shareholder, Zero lower bound
