US
The Federal Reserve Proposes Revisions to the FR 2956 Report (Treasury Securities and Agency Debt and Mortgage-Backed Securities Reporting Requirements) (Federal Register 2024-14365)
The FRB Board proposes to revise Part 1 of the FR 2956 report, which pertains to the reporting of transactions in U.S. Treasury securities, by updating (i) the timeframe within which a depository institution subject to the reporting requirements of Part 1 of the FR 2956 must report transactions in U.S. Treasury securities, and (ii) for transactions executed electronically, the minimum increment of time that must be used for reporting the execution times. The Board also proposes certain technical and clarifying revisions to Part 2 of the FR 2956 report. Comments must be submitted on or before August 30, 2024.
The Commodity Futures Trading Commission (CFTC) 2024 Supervisory Stress Test Results
The CFTC issued results of fourth annual Supervisory Stress Tests (SST) of Derivatives Clearing Organizations (DCOs) registered with the CFTC — i.e., central counterparties subject to CFTC jurisdiction. The analysis covers 9 individual DCOs, comprising 11 clearing services and is a “reverse stress test”. They concluded DCOs studied hold sufficient financial resources to withstand price shocks. All individual DCOs hold sufficient financial resources to withstand many extreme and often implausible price shocks, along with multiple defaults of clearing members (CMs). Evaluating cross-DCO effects, interconnectedness were muted across DCOs for most scenarios.
The Consumer Financial Protection Board (CFPB) extends Small Business Lending Rule (SBLR)
The CFPB issued an interim final rule to extend the compliance deadlines for the Small Business Lending Rule (SBLR). Lenders with the highest volume of small business loans must begin collecting data by 7/18/2025 and reporting on 6/1/2026, while lenders with a moderate volume of loans must begin collecting by 1/16/2026 and reporting on 6/1/2027. The rule permits lenders to collect demographic data up to 1 year before the compliance date to test their procedures and systems, and has also updated the grace period. The CFPB will not assess penalties for reporting errors for the first year. Comments on the extension must be sent within 30 days from publication in the Federal Register.
Canada
The Government of Canada Issues Discussion Paper on Artificial Intelligence (AI) Computing Infrastructure
The Government of Canada launched a public consultation on an artificial intelligence (AI) computing infrastructure, which will help inform the design and implementation of a new AI Compute Access Fund and a Canadian AI Sovereign Compute Strategy proposed in the 2024 Budget. It includes an AI blueprint with a discussion paper outlining opportunity and ambition on AI providing researchers, innovators, businesses, and AI companies with tools. It will engage all interested stakeholders in identifying the best strategies for investing in Canada’s AI future. The consultation will be open from 6/26/2024 to 9/6/2024.
Global
The Bank of International Settlements (BIS) Basel Committee publishes its 2024 Annual Economic Report
Basel published its Annual 2024 Economic Report, which takes the pulse of the global economy, prioitizing 2 issues, monetary policy in the first quarter of the 21st century (Chapter II) and the benfits/risks of artificial intelligence/AI (Chapter III). The report presents a review of the previous year in Chapter I, considering inflation, economic activity, resilience of the financial system, and synchronized monetary policy tightening. Monetary policy must finish its job on disinflation and fiscal policy will need to consolidate. Prudential policy needs to remain vigilant, continuing efforts to enhance resilience and structural policy will need to set a basis for sustainable growth while preparing for challenges ahead.
The Bank of International Settlements (BIS) Basel Committee publishes Press Release on Artificial Intelligence (AI) Impact on Economic Systems
The Basel Committee published a press release entitled “Central Banks must prepare for AI’s Profound Impact on Economy and Financial System”, considering the inflation dynamics effects. Central banks should embrace artificial intelligence (AI), anticipating its impact on the economy and financial system, and harnessing it for their own operations, especially as the widespread adoption of AI could have repercussions for inflation dynamics. The financial sector is among the most exposed to all benefits and risks of AI, with benefits including better lending and payments and the main risk being sophisticated cyber attacks, creating the need for central bank cooperation.
The United States
Updates on IDES Testing Schedule
The FATCA International Data Exchange System (IDES) testing window has been revised and will be open from Monday, July 8, 2024. Currently, IDES is experiencing intermittent issues with system notifications. The IRS is actively working to resolve this issue. IDES users will be notified when the system is fully restored.