Intraday liquidity reporting poses challenge for banks says Swift
New intraday liquidity reporting tools set out by the Basel Committee on Banking Supervision could pose a serious challenge for banks, according to a new white paper by Swift.
Risk Management
Dark pools are unfairly damaging exchanges warns report
Trading rules in the US are giving dark pools an unfair advantage over exchanges and could be damaging liquidity, according to a new report by the Capital Markets Cooperative Research Centre.
ASIC consults on OTC derivatives reform
The Australian Securities and Investments Commission has launched a consultation on proposed changes to the trade reporting rules for OTC derivatives, in a move that suggests Australia is learning the lessons of OTC reforms in other countries.
Facing up to the Financial Transaction Tax
A European financial transaction tax on equities and derivatives trades could be damaging for European liquidity levels and the City of London, but it also looks set to impose serious operational challenges for banks, brokers and their buy-side clients following the failure of a UK appeal to the European Court of Justice earlier this year.
CFTC’s O’Malia warns regulators to “Do No Harm”
Commissioner Scott O’Malia of the US Commodity and Futures Trading Commission has called for continuing international co-operation on market surveillance and warned that current oversight mechanisms are flawed in terms of the data they collect and the way that they analyse it.
UK to launch competition investigation into retail banking
Essential parts of the UK retail banking sector lack effective competition and do not meet the needs of personal consumers or SMEs, according to government body the Competition and Markets Authority, which is now planning to launch a full investigation that could last 18 months.
Know thine algo: how to define it, prove it, tame it. Part 1
Regulators across the globe appear divided on the question of whether tighter control of algorithmic trading is necessary: the Australians are pretty laid back about it, the Germans are ahead of the game, while political debate rages in the US …
Don’t blame exchanges for “expensive” market data says Deutsche Börse
It is often said that market data in Europe is too expensive, but it would be unfair to blame that solely on the exchanges, according to Christiane Baumgarten, vice president, market data and services at Deutsche Börse (right). With the consolidated tape mandated by MiFID II due by 2016, market data is at the centre of the European Commission’s plans for a better trading environment in Europe.
MiFID II headache intensifies as ESMA deadline draws near
MiFID II could cause serious problems for banks, brokers and other market participants in the run up to the January 2017 implementation, according to executives attending a meeting chaired by the European Securities Markets Authority in Paris earlier this week.
China moves cautiously towards options market launch this year
As China prepares to open an options market for the first time later this year, big changes are afoot in Asia’s biggest market. French trading technology specialist Horizon Software talks to Banking Technology about the kind of tools that will be needed to liberalise the Chinese economy.
Cinnober plots new course for BOAT trade reporting service
Trading technology specialist Cinnober has big plans for BOAT, the trade reporting service it acquired from Markit on 1 July – including new asset classes, a new focus on banks and brokers, and a renewed push at data quality.
EU sets date for MiFID II as transparency debate intensifies
The EU has set a date for the introduction of MiFID II, the long-awaited legislation from the European Commission which was recently approved by the European Parliament. The decision follows years of consultation and negotiation, but serious reservations remain about how transparency will be applied to non-equity markets.
European T+2 migration obliges post-trade reform says Fidessa
Shortening settlement cycles and increased regulatory oversight are pushing financial institutions to reform their post-trade processes. That can only be a good thing, according to a new whitepaper from trading technology specialist Fidessa.
Macquarie revamps reconciliation with Gresham Computing and Amazon Web Services
Australian broker Macquarie Futures has begun using a cloud-based reconciliation service from Gresham Computing and Amazon Web Services, which the broker says will help it to make its North American derivatives business more efficient.
ESMA defiant over OTC trade reporting guidance
The European Securities and Markets Authority has disputed claims that it should be doing more to help financial institutions connect with trade repositories, following industry complaints that the regulator has not allowed enough time, has issued key specifications at the last minute, and is now scaling back its involvement with the job unfinished.
BBA calls on Bank of England to protect challenger banks
The BBA has called for regulators to do more to improve competition in UK retail banking by making changes to the way payments, capital, access to funding and proportionality of regulation are handled and opening up more opportunities for challenger banks.
Funds industry coming to terms with AIFMD as deadline approaches
Fund managers are showing a “significantly more positive attitude” to the imminent Alternative Investment Fund Managers Directive. Initial fears appear to have subsided, the challenges and predicted costs have significantly reduced and the industry is realising the opportunities.
Market manipulation detection firm offers “Pepsi Challenge” with new system
One company grateful for the flurry of publicity given to the practice of front-running orders by the publication of Michael Lewis’s book Flash Boys earlier this year is New York-based Trillium, whose Surveyor market manipulation detection tool can be used to detect the practice.
T+2: Settlement Time
In April, US post-trade utility the DTCC called for the US settlement cycle to be moved to T+2, to bring it into line with what’s happening in the rest of the world, which is converging on T+2 settlement cycles – at different speeds.
Tullett Prebon launches aggregated SDR feed for interest rate swaps
Tullett Prebon has launched an aggregated swap data repositories data feed for the interest rate swaps market, aiming to increase price transparency in accordance with the Dodd-Frank Act.
Outsourcing: making oversight a forward-looking benefit
Could the establishment of an enhanced outsourcing oversight capability do more for asset managers than simply satisfy the FCA? A more mature set of oversight metrics could be used to provide foresight into how the outsourcer might perform in the future.
Bank of England tackles “critical” cybercrime attacks
A major new effort spearheaded by the Bank of England and the UK Treasury has been launched to shore up the cyber defences of the UK financial services industry, amid rising concerns that testing has exposed serious unaddressed weaknesses.
Risk aggregation and reporting challenges intensify for banks
The past month has been a busy one for G-SIBs – global systemically important banks – as they confront the challenges of “what full compliance looks like” in the context of the Basel Committee on Banking Supervision and its Principles for Effective Risk Data Aggregation and Risk Reporting.
SIX to set up Swiss trade repository for OTC derivatives
Switzerland’s SIX Group is planning to set up a central trade repository or derivatives transactions together with a group of Swiss banks, in a move the company says will increase transparency and traceability of derivatives transactions. The project is based on the Swiss Financial Market infrastructure Act, a new piece of federal legislation which seeks […]
The race is on: banks and regulators prepare for AML changes
The European Union and the larger international policy community have given substantial attention to anti-money laundering regimes this year, cueing both financial institutions and regulators to begin the race to implement and enforce respectively, writes Aamir Khan, general counsel and head of London office at Clutch Group.
Canadian exchange pursues “fairer markets” with MillenniumIT deal
Canadian ‘challenger’ exchange Aequitas, which plans to favour long-term investors by discouraging HFT, has chosen a trading engine and several other tools from MillenniumIT, the Sri Lanka-based technology company owned by the London stock Exchange.
Card costs still too high say retailers
Despite falling costs, banks are continuing to charge “unjustifiable” fees that rip off retailers and consumers as they move away from cash towards debit cards and other forms of payment, according to the British Retail Consortium’s Payments Survey for 2013.
Collateral management moves to centre stage
Collateral management as it is currently known will no longer exist within a few years as increased regulatory demands, rising levels of automation and growth of industry tools to optimise collateral transform the industry, according to a new survey and report by Sapient Global Markets.
Traiana expands SEF credit checking features on CreditLink
Pre-trade risk and post-trade processing specialist Traiana has launched a new version of its CreditLink tool for credit derivatives, which it says will help buy-side firms to trade on swap execution facilities.
Athens Stock Exchange buys surveillance platform
The Athens Stock Exchange has chosen a new surveillance system that it says will help it cope with new European financial regulations, including MiFID II and EMIR.
ESMA begins consultation on MiFID II technical standards
The European Securities and Markets Authority has launched a consultation on the implementation of MiFID II, the long-awaited legislation from the European Commission which was recently approved by the European Parliament. The consultation seeks to translate the principles agreed in the draft text into more technical standards which will be directly implemented across the 28 member countries of the EU.
Collateral tops concerns at Singapore Securities Financing Conference Asia 2014
Sourcing the right collateral to cover global exposures has risen up the list of priorities for financial institutions in Asia in the past 12 months as concerns mount over a possible collateral shortfall, according to a poll conducted by the Singapore Exchange and Clearstream at the Global Securities Financing Conference Asia 2014 in Singapore.
Half of UK traders still flout mobile voice recording rules
More than two years after the UK’s FSA introduced rules on mobile call recording for financial institutions, more than half of those affected still have not rolled out a solution – leaving many at risk of enforcement action, according to a new report by analyst firm Ovum and computer telephony specialist Teleware.
Uniting entity data – the missed opportunity
In a post-2008 crisis landscape dominated by regulatory reform, compliance is only part of the issue. If firms can address how they manage multiple data sets and deploy a truly enterprise-wide model, they can capitalise on the real opportunity – achieving a competitive advantage.
ICAP’s new London SEF targets OTC derivatives
ICAP has launched a swap execution facility in the UK, as part of a push to dominate both the European and the US OTC derivatives markets as they are brought under new regulation.
Survey: KYC action plans 2014
Looked at from a data perspective, many new regulations have overlapping requirements that come back to customer data. Banking Technology joined forces with Markit І Genpact KYC Services and regulatory specialist JWG to look at how firms are approaching the challenges this poses.
Fair treatment of customers lies at heart of future says FCA director
New UK regulator the Financial Conduct Authority has made a good start in its first year of life and has helped to contributed to a “sea change” in the way conduct is viewed and treated by financial institutions, according to Clive Adamson, director of supervision at the FCA.
The value of SEPA beyond the SEPA-zone
The work corporates are doing to streamline cash management processes should not end with SEPA implementation, says. Indeed, the principles and ideas underpinning SEPA can inform progress even in the most challenging markets.
Regulation is holding back innovation says building society chief
There is a danger that regulation will push financial services so far down the path of homogeneity that it hinders innovation and hurts customers, warns Robin Fieth, chief executive at the Building Societies Association.
MiFID II faces a tough road ahead
Despite last month’s European Parliament vote, MiFID II will continue to be dogged by contentious issues and political infighting between member states ahead of the European elections on 22 May, senior financial industry observers have told Banking Technology.
