Japan gears up for OTC derivatives clearing in 2014
Financial services firms in Japan are taking early steps to prepare for new rules on OTC derivatives, according to a new survey carried out by fintech company Calypso in Tokyo.
RegTech
New rules for dark trading and HFT in Australia
Australia’s Securities and Investments Commission has set out a series of final rules on dark liquidity and high-frequency trading, which it says will promise a more stable market.
Bloomberg rolls out US swap execution facility
Bloomberg has received approval to launch a Swap Execution Facility, ahead of the compliance deadline for new US Dodd-Frank rules for clearing of OTC derivatives.
The new FCA – don’t have nightmares
Is there anything to fear about the new FCA? Well, possibly quite a lot, it would seem. A hundred or so days into the new era of the FCA and it would be hard for anyone in the wealth management or private banking sector to have missed the message that the regulation of the sector is going to be different from now on.
Market surveillance: a watching brief
The US Securities & Exchange Commission is often accused of using skateboards to chase Ferraris in its attempts to keep up with trading houses, but less than a year after announcing that it intended to create a new market surveillance system – and six months after going live with it – its cloud-based approach is […]
Data protection compliance: the biggest hurdle facing the back office?
In an effort to improve the protection offered to consumers, and to harmonise data practices, the EU is currently in the process of passing two pieces of legislation: the Cybercrime Directive and the General Data Protection Regulation (GDPR). Few people have given much thought to how these will align with international financial regulation.
RBS prepares for SEPA with Canada’s CGI Group
The Royal Bank of Scotland has chosen Canadian IT firm CGI Group to help its corporate clients manage the transition to SEPA, the European Union project to simplify bank transfers denominated in euros.
Here algo again: MiFID II will require your attention in 2014
For firms who remember MiFID I, and those that don’t, round two is almost upon us. This month, the Council of the EU agreed their general approach, meaning that the draft of MiFID II/MiFIR is free to advance to the European Parliament. If all goes according to the current plan, the new combined legislation will be with us in time for 2015 implementation.
Pressing the reset button
Whether or not the coalition government succeeds in implementing all of its proposals remain to be seen but undoubtedly the transformation of the banking sector – across all levels – is most certainly underway …
House of Commons HFT tax proposal “not good for market”
Market participants have condemned a proposal in the UK House of Commons that calls for the UK government to consider implementing a tax on high-frequency trading activity in the country.
Euroclear moves France, Netherlands and Belgium to T+2 settlement
Securities trading in France, the Netherlands and Belgium is to move to T+2 settlement in October 2014, following a decision by Euroclear to pre-empt Europe-wide settlement reforms.
FATCA-style agreements present taxing times for GRC teams
If your role has anything to do with governance, risk and compliance or with international tax agreements, then you’ll be familiar with the United States Foreign Account Tax Compliance Act and the potential impact on many of the world’s financial institutions …
Chilean banks build CCP based on Calypso tech
A group of Chilean banks working on a new CCP for OTC derivatives have chosen Calypso technology to help build its core clearing platform, in an initiative that highlights Latin America’s efforts to match G20 financial sector reforms.
Risk data: can it be both efficient and compliant?
With six months before the 4th Capital Requirements Directive comes into force, many will be asking what technological improvements will be necessary to efficiently manage risk going forward. Before they embark on a costly overhaul of their data systems, firms should look at what regulatory trends are likely to require similar changes in the future and adjust their specification accordingly.
Roundtable: the Future of Standards
Predicting the future is never easy, but trying to anticipate likely developments in a particular area is essential in order to take timely action. With that caveat, Stephen Lindsay, head of standards at SWIFT, sets a boundary on a discussion on the Future of Standards: “What we are trying to do is extrapolate a little bit from where we are now to where we might be in a few years’ time,” he says.
Barclays under fire for “outrageous” remittance closures
At a passionate debate in Westminster this week MPs, led by Rushanara Ali, member for Bethnal Green & Bow, called for government action in the wake of Barclay’s recent decision to close accounts for a large number of small payments businesses in the remittances sector.
The battle for benchmarks: divisions in the ranks?
With lots of different regulatory benchmark efforts now underway, the industry could be forgiven for not taking a common stance. With IOSCO issuing final principles, ESMA and the EBA are simultaneously consulting on a European set of principles. Meanwhile the UK is moving ahead with its own reforms.
Banks granted respite as US FATCA rule is delayed again
Delays to the controversial US FATCA rule have provided a valuable window of opportunity for financial institutions to prepare.
ESMA kicks off latest OTC derivatives clearing consultation with discussion paper
European securities regulator ESMA has started the latest round of consultation on OTC derivatives clearing with the release of a discussion paper on regulatory technical standards for the European Market Infrastructure regulation, the new pan-European rulebook.
Libor is dead … long live NYbor?
Uncertainty over the mechanism for calculating the Libor benchmark in future remains in the wake of the generally applauded appointment of NYSE Euronext as its new administrator.
HDFC Bank India takes up Numerix risk tools
India’s HDFC Bank has chosen to install risk management tools provided by Numerix, in a move the bank says will help consolidate its risk management and reporting capabilities.
FATCA, IGAs and AML Technology
After a long wait, the first real FATCA implementation deadlines are just around the corner. To meet the new account identification requirements, by 1 January 2014, institutions should be in the process of implementing the necessary upgrades in their onboarding and overall compliance systems and processes.
Changing banking for good: aspiration or opportunity?
The possibility of jail for miscreant top bankers has hit the headlines following publication of the Parliamentary Commission on Banking Standards final report, a compendium of all that is considered wrong with both banks and the regulator …
Data structures hampering banks’ ability to monitor risk
According to a new white paper from Wolters Kluwer Financial Services, one of the key issues faced by data architects tasked with creating a unified data management infrastructure is the fact that operations in different countries often have different internal systems.
Embrace the internet to determine the future of banking
The impact of the internet on the banking industry may yet turn out to be far more important than the financial crisis and the subsequent regulatory overhaul. Viewing statements on-line and making payments electronically is just the very beginning of the revolution.
Six to supply data for GBST financial transaction tax system
GBST‘s Capital Markets and Six Financial Information have teamed up to enhance GBST´s solution for the Financial Transaction Tax that some European countries are introducing.
A pro-fund change? Good news for AIFs
The Alternative Investment Fund Managers Directive threatens to have a significant operational impact on the industry. Fund managers will soon be subject to a host of new requirements including increased KYC and due diligence, better risk and liquidity monitoring, and new reporting and disclosure requirements. However, in the UK the transition looks to be particularly […]
Government should push banking platform upgrades in wake of Treasury report say IT firms
Reaction to the publication of the Report of the Parliamentary Commission on Banking Standards earlier this week focussed largely on the restrictions that senior management in banks, but it also made recommendations about the systems banks use, and the need to upgrade them.
ISO 20022 – A Hero for Our Times
ISO 20022 has been hailed as the lingua franca in payments and securities for some years now. It offers great potential for re-engineering the payments industry, and for process improvement, but for a standard that promises so much it is still relatively unknown.
SEC hopes for Midas touch from HFT surveillance system
the US Securities and Exchange Commission says that its cloud-based approach is paying dividends and allowing it to examine the structures of the markets it supervises at a greater level of granularity than ever before.
Shared UK payments infrastructure faces uphill struggle
Financial services observers have expressed support for the UK Payments Council’s new roadmap – but serious concerns remain about the viability of the proposals, which are backed by the UK government as part of a drive to improve services for consumers.
Brokers need to focus on risk management says Tabb Group
Brokers will need to spend more on risk management over the remainder of 2013 if they are to survive incoming financial regulation and new technologies will be required to make that possible, according to new research by Tabb Group.
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
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
