The six largest economies in the EU have reached a landmark agreement to advance the Capital Markets Union, aiming to energize the continent's financial sector after years of delays. The deal, forged by Germany, France, Italy, Spain, the Netherlands and Poland, is designed to provide greater financing options for local companies, facilitate cross-border investments for individuals, and streamline financial oversight. Seen as a crucial move to strengthen Europe's global competitiveness, the agreement is expected to set the tone for wider adoption among all 27 EU member states, with hopes for a comprehensive EU-wide deal by the end of 2026.

The US Securities and Exchange Commission has proposed rescinding a 2024 rule requiring companies to disclose climate risks, calling it an overreach of authority. The rule, a key part of former President Joe Biden's agenda, never took effect due to lawsuits from Republican-led states and trade groups. SEC Chair Paul Atkins criticized the rule for its policy basis and potential financial burden on companies. The proposal is open for a 60-day public comment period.

US Federal Reserve and Bank of England officials have signaled little intention to alter monetary policy soon. At the Reykjavik Economic Conference, New York Fed President John Williams and St. Louis Fed President Alberto Musalem discussed the potential long-term productivity benefits of artificial intelligence, its impact on inflation and a watch-and-wait approach to rates. Bank of England Gov. Andrew Bailey said the BoE will maintain a cautious stance until the economic and political outlook in the UK becomes clearer.

US Treasury Secretary Scott Bessent has suggested the Trump administration might gradually lift some sanctions on Iran if certain milestones are met amid ongoing cease-fire negotiations. "Anything that's taken off will be taken off slowly," Bessent said at the Reagan National Economic Forum. "There will be milestones that the Iranian regime would have to meet." However, Bessent also indicated that sanctions could be intensified if a deal is not reached. President Donald Trump has recently imposed additional sanctions on Iranian airlines and financial targets.

US Federal Reserve Vice Chair for Supervision Michelle Bowman has expressed willingness to overlook a recent increase in inflation, attributing it to temporary factors such as higher energy prices and tariffs. Bowman's stance aligns with that of Fed Chair Kevin Warsh and supports the consideration of rate cuts, contrasting with other officials who are concerned about prolonged inflation and potential need for higher rates.

Bank of England Deputy Governor Sarah Breeden has indicated a more flexible approach toward cross-product margining at clearing houses, backing measures that could improve margin efficiencies and encourage greater central clearing of UK gilt repo transactions. Breeden continued to warn about leverage risks, the comments suggest regulators are increasingly focused on boosting clearing participation and market resilience.

The European Central Bank has named Roland Straub, Christophe Kamps and Petra Senkovic to leadership roles to strengthen its teams for monetary policy, international relations and legal services. Straub will succeed Massimo Rostagno as director general of monetary policy, Kamps will be director general for international and European relations, and Senkovic will be director general of legal services.

With less than six months to go until market participants are required to clear cash Treasury transactions under a rule introduced by the Securities and Exchange Commission, and 12 months until repo trades are required to be cleared, the ISDA Treasury Forum will explore the milestones that have been achieved and discuss what remains to be done. Featuring leading market participants and infrastructures, the event will cover everything market participants need to know as the deadline approaches. Click here to register today!