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Market Chatter: UK, US Central Banks Reportedly Looking into Global Banks' Exposure to Trading Companies

MT Newswires·09/21/2026 08:25:53
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08:25 AM EDT, 09/21/2026 (MT Newswires) -- The Bank of England and the US Federal Reserve are asking global banks about their exposures to large trading companies and market makers, London's Financial Times reported Monday, citing people familiar with the matter. The scrutiny comes after New York-based trading firm Jane Street lost $15 billion linked to its investment in hedge fund Situational Awareness when a rally in artificial intelligence stocks in July reversed course, according to the report. The UK and US central banks reportedly inquired about trading companies' risk appetite, the evolution of banks' exposure to such businesses throughout the trading day, and in what manner risk controls are carried out. The BoE and the Fed did not immediately respond to MT Newswires' requests for comment. (Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)