European Central Bank President Christine Lagarde says the ECB is prepared to take necessary measures to prevent the war in Iran from causing inflation similar to that seen after Russia's invasion of Ukraine. Lagarde said the eurozone is in a better position to absorb shocks and emphasized the ECB's commitment to controlling inflation amid uncertainty and volatility in energy markets.

The Securities and Exchange Commission has confirmed a December 2026 deadline for central clearing of most Treasury cash transactions to enhance market integrity. SEC Chairman Paul Atkins says repo transactions involving broker-dealers must comply by June 30, 2027.

The International Energy Agency is considering the largest oil reserve release in its history to counter the near-total closure of the Strait of Hormuz amid the US-Israel war with Iran. The proposal, discussed at an emergency meeting, would surpass the 182 million barrels released in 2022 after Russia invaded Ukraine. Oil prices have surged as much as 40% since the conflict began, raising concerns about inflation.

The People's Bank of China has signaled greater tolerance for yuan flexibility amid market turmoil from the war in Iran. The 30-day volatility of the yuan's daily reference rate has reached its highest since December 2024, indicating the central bank is allowing more two-way fluctuations. Despite the geopolitical shocks, the yuan has remained relatively stable, supported by policy measures and strong exports.

Foreign investors added $21.7 billion to emerging market assets in February, sharply down from January's $100.5 billion surge, according to the Institute of International Finance. Debt inflows remained stronger than equities, while regional trends diverged as China and Latin America attracted funds but Asian equities saw outflows led by South Korea.

US Securities and Exchange Commission Chairman Paul Atkins has reaffirmed his commitment to reducing regulatory complexity by working to integrate US rules and enhance coordination between the SEC and the US Commodity Futures Trading Commission. Atkins announced that staff have been tasked with drafting a memorandum of understanding to address overlapping examinations and enforcement actions, aiming to eliminate duplicative enforcement and create a level playing field for market participants.

Global banks have pushed back against the RBI's proposed reporting requirements for offshore rupee trades. Represented by international financial industry associations, banks raised concerns that the rules could breach client confidentiality and conflict with existing data and reporting regulations in other countries. They also noted that significant changes to internal systems and agreements would be necessary, and some may only be able to share information with explicit client consent.

The UK Financial Conduct Authority is set to introduce a regulatory framework for digital assets this summer. The initiative aims to balance innovation with market integrity, with the FCA testing stablecoin models and collaborating with industry through its regulatory sandbox. The FCA also plans to integrate the Payment Systems Regulator to streamline oversight and enhance financial market innovation.

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