The Bank of England has raised concerns about plans by the FCA to soften the capital requirements for the likes of Citadel Securities, Jane Street and Hudson River Trading, according to the Financial Times.
The FCA proposals are designed to boost liquidity in financial markets but central bank officials are worried it could increase the risk of a systemic crisis, the paper saidBloomberg Terminal, citing unnamed people familiar with the talks.
The Financial Conduct Authority is exploring loosening capital requirements for electronic trading firms, which have wrested away large chunks of banks' market-making businesses in recent years, on the grounds that their failures would not hurt any depositors and so carry less systemic risk.
As Westminster pushes regulators to favor approaches that unlock growth and competitiveness, senior BOE officials have repeatedly stressed the need to defend the financial sector's resilience, and are also arguing against overhauling the ringfence regime that requires the separation of banks' retail and trading businesses.
Lenders have also warned that the largest non-bank market makers should face requirements aligned with those imposed on banks. A blanket reduction of capital requirements "does not reflect the systemic risks posed by large investment firms," the Association for Financial Markets in Europe, a lobby group, has said in its response to the proposals.
The European Principal Traders Association, whose members include Citadel Securities, Hudson River Trading and Jane Street, has broadly welcomed the UK proposals, arguing current rules are "not fit for purpose" as they are designed for banks.
Representatives for the central bank and FCA didn't immediately respond to requests for comment.
North Korean leader Kim Jong Un confirmed a policy that requires soldiers to commit suicide on the battlefield to avoid capture while fighting Russia's war against Ukraine.
Speaking at an event to inaugurate a memorial in Pyongyang for North Koreans who have died in action, Kim twice mentioned soldiers who had "self-blasted," according to a report by the official Korean Central News Agency.
"Heroes who unhesitatingly opted for self-blasting, suicide attack, in order to defend the great honor" were praised by Kim in the speech given to bereaved families and top Russian officials. "They did not expect any compensation, though they performed distinguished feats," he added. "They died a heroic death."
Kim signed a military pact with Russian President Vladimir Putin in 2024 that included a mutual defense provision. South Korean and Western intelligence agencies have since estimated Pyongyang has sent at least 10,000 soldiers and tens of thousands of containers of weapons to help Russia fight Ukraine. The North is believed to have suffered heavy casualties, with thousands killed in action.
The disclosure by Kim this week follows reports that North Korean troops captured by Ukraine were required to kill themselves to avoid becoming a prisoner of war. Those accounts cited both Ukrainian intelligence and a captured North Korean soldier.
North Korea has also ramped up weapons tests this year, including of shorter-range ballistic missiles, and test-fired its new sea-to-surface weapons system. That comes amid growing concerns over the country's army gaining real combat experience from fighting alongside Russia.
Earlier this month, Pyongyang said it has tested multiple Hwasong-11 missiles -- a short-range missile type also known as KN-23 or KN-24 -- which Ukraine has said Pyongyang supplied to Moscow for use in its war against Kyiv.