The International Swaps and Derivatives Association's data-driven advocacy helped to secure constructive changes to the latest US Basel III Endgame proposal. ISDA's quantitative impact study highlighted areas where capital requirements were misaligned with risk, leading to significant revisions in the proposal. In an interview CEO Scott O'Malia emphasizes the importance of policy debates based on hard numbers, and says that ISDA's current priorities include the use of tokenized assets as collateral and developing derivatives trading in emerging markets.

The European Central Bank is expected to raise interest rates by 25 basis points in June in response to the Iran war before reversing the move in 2027 to support economic growth, according to a Bloomberg survey. The ECB is likely to maintain its deposit rate at 2% on April 30, but new projections in June might prompt the rate hike.

Eurozone economic activity contracted in April 2026, as the S&P flash Eurozone Composite PMI dropped to 48.6, marking the first contraction in 16 months. The latest data signals a 0.1% quarterly GDP decline. The unexpected reversal raises concerns about the reliability of the ECB's growth forecasts and highlights the mounting economic challenges facing the bloc.

China's Ministry of Finance conducted its largest-ever single offering of 30-year ultra-long special bonds, raising $12.5 billion as part of a broader 1.3 trillion yuan quota. This marks the first ultra-long special bond sale of 2026, with proceeds earmarked for targeted expenditures such as infrastructure and subsidies. The issuance is a continuation of the government's strategy since 2024 to use off-budget bonds for economic support.

US Treasury yields increased as investors reacted to potential peace negotiations between the US and Iran, which has raised oil prices and inflation concerns. The yield on 10-year notes climbed to 4.35% before settling at 4.32%. Investors remain cautious about the economic impact of the Middle East conflict, leading to a modest pricing in of a US Federal Reserve rate cut by year's end.

It could take the US Federal Reserve at least six months to move ahead with interest-rate cuts, according to a Reuters poll of economists, with elevated energy prices affecting the central bank's calculus. Nevertheless, 71 of the 103 economists in the poll still expect at least one cut.

Kevin Warsh, US President Donald Trump's nominee for US Federal Reserve chair, outlined plans for a narrower, less transparent central bank during his Senate confirmation hearing. Warsh emphasized maintaining the Fed's independence from politics, despite Trump's expectations for lower interest rates. Warsh, who served on the Fed's Board of Governors from 2006 to 2011, has shifted from a hawkish stance on interest rates to a more centrist position.

US Federal Reserve Vice Chair for Supervision Michelle Bowman has urged Wall Street CEOs to support capital proposals that would lower industry requirements and to refrain from seeking carve-outs. Bowman has noted that the proposals, which include changes related to Basel III, are unlikely to undergo significant revisions, and she has aimed to finalize them by year-end.

This comprehensive 2-day Masterclass was developed to help participants understand the terminology of collateral, securities, and related documentation, learn about relevant regulatory history and current market practice, especially with regard to the post-Uncleared Margin Requirements landscape. This course also includes practical explanations of tasks and responsibilities for OTC margin managers. Register here to secure your spot!

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