Living wills: don’t lose the will to live
Changing EU rules suggest firms will face 2015 implementation confusion without co-ordination on Recovery and Resolution Procedure standards
Risk Management
UK Payments Council plans shared payments infrastructure
The UK Payments Council has published a ‘payments roadmap’, which sets out the steps that could help to build up a shared payments infrastructure in the UK.
Risk data aggregation: forming the view from nowhere
The deadline for firms to upgrade their risk data aggregation capabilities is fast approaching. Without a consolidated viewpoint on what new risk data requirements mean, they will be at a loss when it comes to determining best practice …
AmBank Malaysia turns on Murex risk tools
Malaysia’s AmBank has installed a risk management tool from Murex, which it says will help the bank to meet regulatory and reporting requirements as well as improve its internal oversight.
How high? Re-setting the KYC bar
Regulators are busy raising the bar for KYC systems and controls. With conflicting purposes and customer data objectives, new guidance and industry solutions are needed in 2014
Joining the dots: Thomas Zeeb, chief executive, Six Securities Services
The post-trade infrastructures behind the world’s securities markets face as much, if not more, regulatory driven change as the trading firms in the face of legislation such as the European Union’s European Market Infrastructure Regulation. While some of the effects will be negative, the regulators are showing a constructive approach and recognising that the infrastructure providers came out of the crisis well, says Thomas Zeeb, chief executive of Six Securities Services.
TriOptima tool targets OTC derivatives reporting business
As new rules governing the central reporting of OTC derivatives take effect across the G20 nations, TriOptima, a subsidiary of broker ICAP, has said it will verify and reconcile OTC derivatives data from US post-trade utility the DTCC’s trade repository – making it the first provider to do so.
The gathering storm
Recent months have seen rising tensions over the seemingly insurmountable demands for collateral prompted by tough new financial regulation. With US Treasury estimates ranging as high as to $11.2 trillion in stressed market conditions, some observers are deeply concerned that the industry could be in danger of sliding into a black hole
SEPA: the long and winding road
As the first deadline for implementation of the Single Euro Payments Area approaches in February 2014, you could be forgiven for thinking that it is pretty much all over – or at least will be by October 2016, when the second deadline arrives. Don’t count on it, cautions Ruth Wandhöfer, global head, regulatory & market strategy, Citi Transaction Services.
RBS puts Pain in charge of compliance
The Royal Bank of Scotland has appointed former FSA supervisor Jon Pain as head of its conduct and regulatory affairs division, reporting directly to chief executive Stephen Hester.
NYSE Liffe puts London derivatives ambitions on ICE
ICE Clear Europe is to begin clearing for NYSE Liffe’s London derivatives market on 1 July, marking the end of NYSE’s migration from LCH Clearnet, and the beginning of ICE’s integration with NYSE Euronext, which it purchased in December for $8.2 billion.
Sinking the financial transaction tax
Further uncertainty in the Eurozone has been prompted by unconfirmed reports that the European Commission is considering watering down the 11-nation proposals for a financial transaction tax – but any revisions may have to wait until September, following elections in Germany, according to sources close to the subject.
Putting the back office in the spotlight: the widespread impact of T2S
Europe’s post-trade infrastructure is undergoing significant change, driven by the implementation of the single settlement platform Target2-Securities and the forthcoming CSD Regulation. As a result, market participants need to review their current back office system capabilities.
SunGard rolls out cost-cutting compliance scissors
Financial technology company SunGard has released a new tool designed to help banks and other financial institutions to streamline their compliance with regulation, reduce their costs and control risk.
DTCC and Euroclear target collateral shortfall
US post-trade services company the DTCC and Belgian settlement specialist Euroclear are planning to create a joint service that aims to provide better, safer collateral management for market participants.
Funds under fire
The funds industry is going through a time of great change, with a combination of regulation, cost pressure, consolidation and globalisation forcing many participants to take a close look at their business and operating models and consider what their future role in the ecosystem should be. For some, this means outsourcing activities, creating opportunities for […]
Integrating the LEI to enhance data and risk management
With the newly formed LEI Foundation moving forward with establishing processes for issuing and managing the Legal Entity Identifier through its Regulatory Oversight Committee and the registration of seven pre-Local Operating Units, it is worth taking a step back to understand exactly why the industry is pushing forward with the LEI and what it could achieve.
EU sets out retail bank switching and transparency proposals
The European Commission has published proposals designed to make it easier for European consumers to understand and compare the bank services they receive and switch bank accounts if they are not happy with their existing provider.
Collateral efficiencies could cost $53bn – and weaken risk control
The cost to fully upgrade the financial industry’s infrastructure to make efficient use of collateral will reach $53 billion, according to new research by Celent – but too much standardisation could do more harm than good, warns SIX Securities Services.
German banks set standard framework for clearing OTC derivatives
A legal framework for the standardised clearing of OTC derivatives has been established in Germany with the approval of standardised documentation by the German Banking Industry Committee, the Deutsche Kreditwirtschaft. The DK has published the framework agreement, called the CRV – Clearing-Rahmenvereinbarung – for use by German banks and their buy-side customers with immediate effect. The document […]
The LEI: From interim identifiers to a global standard
It’s not proving easy, but progress is being made on the road to the development of a global Legal Entity Identifier that works and makes business sense.
FCA to focus on competition and communication
The UK financial services sector has asked new regulator the Financial Conduct Authority to do more to support competition, improve its communication with the industry and provide clearer and more predictable regulation, according to a the results of a survey published by the FCA today.
ASX prepares client clearing for OTC derivatives
The Australian Securities Exchange has set out plans to offer client clearing of OTC derivatives before the end of the year, in a move designed to provide new risk management controls to Australian investors.
Dodd-Frank 1073 amendments ease bank fears
Banks can breathe a sigh of relief following the publication of amendments to US Dodd-Frank Rule 1073 today, which should allay fears that draconian regulation was about to stifle cross-border payments.
Diplomacy needed to secure London’s future as a financial centre
A difficult future for the banking industry, but a potentially great one for London as a financial centre, was predicted by Sir John Gieve, chairman of VocaLink and former deputy governor of the Bank of England, speaking at the opening of Swift’s Business Forum in London today. But the industry must be careful and diplomatic if it wants to have any real say in how the future is shaped.
Dermot Turing, Clifford Chance, at International Payments 2013
Dermot Turing, partner at Clifford Chance, told the IPS conference that regulators are hampering innovation by making it hard for the industry to collaborate though application of competition law. He advocates that banks – particularly from the transaction and payments world – should be educating the regulators in order to get better regulations.
Standard Chartered targets collateral shortfall
Standard Chartered has enlisted Clearstream and Euroclear to make more efficient use of collateral, as tough new financial regulations drive investor fears of an impending collateral shortfall.
HFT is here to stay says GreySpark report
Despite its negative public perception, high-frequency trading can act as a force for good in capital markets by adding efficiencies that help investors get a better deal – but only if it is properly regulated, according to new research by technology consultancy GreySpark Partners.
Lack of market surveillance systems “significant problem” says IOSCO report
The absence of market surveillance tools in many jurisdictions and regions is “potentially one of the more significant problems facing the markets in light of technological developments, such as the rapid speed of trade execution and increase in order volume”, says the International Organization Of Securities Commissions in its final report on surveillance.
DTCC hires Tierney to head Asia Pacific unit
US post-trade services utility the DTCC has appointed Peter Tierney as regional head of Asia, as the company continues its drive to be a global centre for OTC derivatives reporting.
Brazil’s BM&F Bovespa adopts Nasdaq surveillance tools
Brazilian exchange BM&F Bovespa has installed a new market surveillance system from Nasdaq OMX, which it says will help ensure the safety of all market participants on the Brazilian market.
SIX chief exec calls for industry to educate public about HFT
Market operators have a duty to educate the public about stock markets – and to take widespread concerns about the role of high-frequency traders seriously, according to Christian Katz, chief executive at SIX Swiss Exchange.
TradeTech panellists see politics riding roughshod over regulation
Discontent with regulation cast a cloud over delegates on the first day of the TradeTech conference in London, as senior industry executives pondered on the politicisation of the debate and the perceived failure of regulators to deliver efficient markets.
UK regulators concerned that EU legislators will close off “legitimate” trading activities
Regulators in the UK are concerned that some European governments will force through regulations that will close off legitimate market practices such as algorithmic trading because they do not fully understand the markets, said a panellist at the TradeTech event in London. Tim Rowe, head of the trading platforms and settlement team at the UK’s […]
BCBS: getting back to first principles
At first glance, the Basel Committee’s new Principles for stronger banking risk governance appear to represent another huge change management challenge for global institutions.
Angry TradeTech delegates clash over HFT
A session at Trade Tech in London fell into chaos earlier today, as furious delegates hurled accusations across the table and members of the audience sparred aggressively with panellists.
US regulators seek huge budget increases to keep up with industry
It’s not just the banks that are struggling with the costs of regulation – so are the regulators. In the US. The Commodity Futures Trading Commission has requested a 52% budget hike to $315 million dollars – described by one of its own commissioners as “improbable and unsustainable”.
Regulate to innovate?
Bankers can seem a little bit schizophrenic when it comes to regulation – much of the time they complain about the sheer weight of the regulatory burden they face, but at other times they talk of regulation as an opportunity. It could well be that as they have finally realised regulation – and plenty of it – is inevitable, some banks have decided to make a virtue out of it.
Traiana swap data repository targets Dodd-Frank, EMIR compliance
Post-trade services company Traiana has opened its Swap Data Repository Service, Harmony TR Connect, for OTC derivatives – providing a tool for market participants to comply with US Dodd-Frank legislation on trade reporting.
IPS 2013: SEPA benefits hard to see for corporates
As the February 2014 deadline for implementation of Single Euro Payment Area compatible instruments approaches, focus is moving from banks to corporates – and the increasingly clear picture is that few European corporates see any great benefit from adopting the standards involved.
