Shares of banks and other financial institutions rose after the Federal Deposit Insurance Corp. said it would reduce the amount of cash banks had to put aside to cover potential losses on derivatives trades.

The move loosened regulations associated with the Volcker rule, designed to prevent banks from risking capital on proprietary trading activities. Among the biggest gainers Thursday were the nation's largest banks by assets, JPMorgan Chase and Bank of America, each of which added more than 3%, and investment-advisory Ameriprise Financial, which rose more than 6%.

Executives at Credit Suisse are reviewing several of the bank's funds after becoming concerned about the multiple roles played by Japanese conglomerate SoftBank Group, The Wall Street Journal reported.

It was another volatile day for global financial markets and the Dow Jones Industrial Average traded in a roughly 500-point range. The role of automated electronic trading in the stock market's violent swings recently is clear from the behavior of "value" stocks as tracked by quantitative analysts at brokerage Nomura Securities.

"The early June rally in value was supported by the fact that the Covid crisis had finally made cheap stocks cheap enough to buy, and the yield curve steepening played the role it has had for the past decade -- steepening curves make value win," said the Nomura analysts, saying a basket of value stocks rose 15% during that rise.

A slight shift in bond markets caused a rapid selloff in the same basket, which racked up 10% of stock losses in about two weeks.

"Value switched from winning to losing on June 9; the yield curve switched from steepening to flattening on the previous day, June 8," noted the Nomura analysts.

Battered German fintech company Wirecard has filed for insolvency proceedings, days after revealing that more than $2 billion in cash missing from its balance sheet probably didn't exist. 


 Write to Rob Curran at rob.curran@dowjones.com