European trading venues: the next generation
A new generation of trading venues is competing their way into the European securities markets with plans to make trading more efficient. But will they bring benefit to banks and investors?
European Union
MiFID II transparency: a brave new world
As the European Parliament adopted MiFID II/MiFIR on 15 April, the financial services industry was left wondering what exactly the new transparency regime is going to mean. Despite a curiously low EC estimate of compliance costs, at between €512 and €732 million, it is clear that MiFID II will have a large impact on the tens of thousands of firms and counterparties that will now fall under its scope.
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.
ING Bank installs “whiteboard in the sky”
Dutch bank ING has installed an enterprise data sharing solution for its fixed income traders in Amsterdam , which the bank’s head of fixed income trading likened to a “whiteboard in the sky”.
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.
Swedbank begins Baltic ATM revamp
Swedish regional bank Swedbank is planning to roll out new ATM applications for 206 branches across the Baltic countries of Estonia, Latvia and Lithuania. The company will also upgrade more than 150 of its ATMs as part of a new multi-channel banking strategy.
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.
Swift Innotribe Startup Challenge names European finalists
Swift’s Innotribe Startup Challenge has named the five European finalists for its annual competition, which seeks to find the best new companies in financial services and bring them to compete in the final at Sibos Boston in October.
The looming spectre of a Financial Transaction Tax
The introduction of a financial transaction tax could mean London losing a swathe of banking business to financial centres with a lighter regulatory regime, such as Hong Kong or Singapore not to mention the logistical and technical challenges for banks.
If T2S is the answer, what’s the question?
The purpose of the European Central Bank’s T2S project is ill-defined and taking so long to deliver that it is being pushed aside by other projects according to speakers at the Swift Business Forum in London.
Trade reporting uncertainty raises “multiple problems”
Nearly three months after the European Commission’s 12 February deadline for trade reporting, market participants are still not ready to report their derivative trades and serious problems remain with understanding the rules.
European Parliament passes “sensible” MiFID II
The European Parliament has approved MiFID II, bringing to a close the political debate over the future of Europe’s trading infrastructure and ushering in a period of focus on finer technical details. The final vote will reflect a much more sensible approach than many had feared, according to Anne Plested, head of regulation change at trading technology specialist Fidessa.
Swift Innotribe Startup Challenge names European semi-finalists
Swift’s Innotribe innovation spin-out has named the European semi-finalists for its 2014 Startup Challenge, which seeks to find the most innovative start-up companies in financial services.
Market data debate reignites at TradeTech
The European Commission’s MiFID II legislation has produced a disappointing outcome for those hoping for a consolidated tape of post-trade data, while exchanges continue to bear the brunt of participants’ anger over the price of market data.
MiFID II may cause pain in the dark
New EU regulations on market making and dark pools could be damaging investor choice and forcing participants to make decisions that are not in their best interests.
Algo tagging: where’s the logic in that?
When the requirement brought about by the German high frequency trading act to tag algorithms comes into force this month, market participants may well feel hamstrung by the complexity of the regime – and some might wonder whether this requirement goes one step too far …
Europe needs more competition, not more exchanges …
Europe doesn’t need more trading venues – instead, it needs more innovation, more fairness, more competition and better enforcement, according to panellists speaking at the Trade Tech conference in Paris.
EU financial markets – from fragmentation to harmony?
Consolidation of market infrastructure in Europe will continue, as firms choose post-trade service providers that meet their needs in terms of cost-effectiveness or value-added services. However, some of the real cost issues in Europe are still to be addressed.
Redesigning the retail bank, the Fidor way
Banks must take note of the way that technology is changing how customers interact with the world around them and develop products and services that address their needs rather than the banks’.
You think SEPA is over? Think again
Banks should be wary of jumping the gun and assuming that SEPA implementation is a done deal. Far from being over, the task of learning to live with SEPA is just beginning.
Vodafone launches M-Pesa in Romania
Mobile money service M-Pesa has launched in Romania, bringing an idea hugely successful in Kenya to a European Union member state for the first time.
Transparency: the new wonder drug?
While transparency may be seen as a new wonder drug that will cure all the industry’s ills, it does not come without side effects, so it was refreshing to see ESMA promoting a collaborative approach with the industry in defining the details of how MiFID II and MiFIR are implemented.
SIA and Orange champion mobile POS in Europe
Orange Business Services and technology infrastructure provider SIA have done a deal aimed at encouraging European banks and merchants to manage more payments via mobile point of sale terminals.
If you’re not ready, the regulators will get you
The complexity of regulatory reforms in Europe and the US are placing pressure on the industry and may catch some participants unawares.
Perseus Telecom launches ‘trans-Atlantic’ microwave service
Perseus Telecom has launched what it claims is the first ‘trans-Atlantic’ microwave route between New York and Frankfurt, for use by banks, market makers, proprietary trading firms and other market participants.
EBA Clearing reports uptick in SEPA payments
EBA Clearing has reported that market participants are gradually adapting to SEPA, with peak day volumes on its Step2 clearing platform above 100 million SEPA credit transfers and SEPA direct debits.
ESMA looks for guidance on CSD technical standards
European securities regulator ESMA has published a discussion paper asking for public feedback on the technical standards that should be used for CSDs, including registration, settlement discipline, confirmation rules, acceptance or rejection of terms, as well as access to CSDs by other CSDs and market participants.
Outfoxing the fixed income fracas
Fixed income is a bit like the tortoise of Aesop’s fables, while equities is unquestionably the rambunctious hare. While equities finished the race towards an agency trading model many years ago, fixed income is just plodding onto the starting lines now. But a little outsourcing may provide the rocket boost the industry needs to push ahead, according to Carl James, managing director of dealing services UK at BNP Paribas.
Custodian bank trio cut T2S asset servicing deal with Clearstream
Post-trade services institutions Clearstream, BNP Paribas Securities Services, Intesa Sanpaolo and BBVA have formed a tie-up in Europe, which they say is aimed at better asset servicing n Belgium, France, the Netherlands, Italy and Spain under the ECB’s forthcoming T2S project.
Manual processes and bottlenecks threaten to throttle OTC derivatives reform
Regulatory change in the OTC derivatives market has produced serious problems that indicate a clear need for more automation of cleared derivatives post-trade processing, according to a new report published by research house Greenwich Associates.
Bank of England live on Swift’s MIRS contingency platform
The Bank of England has become the first central bank to go live with an implementation of the Market Infrastructure Resiliency Service contingency system it has been piloting with Swift over the past few years.
BNP Paribas Securities Services rolls out intraday bank liquidity reporting tool
BNP Paribas Securities Services has launched a reporting tool for investment banks, which it says will help them cope with tough new financial regulations by better monitoring their intraday liquidity.
SIX Swiss Group prepares for T+2 settlement
Switzerland’s SIX Group will move to T+2 settlement starting on 6 October 2014, bringing Switzerland into line with the UK, France, Germany, the Netherlands and Russia.
CaixaBank embraces Google Glass augmented reality
Spain’s CaixaBank has developed an application for Google Glass, the futuristic and controversial new technology that is set to bring augmented reality to the masses when it launches later this year.
MyBank Mandate SEPA direct debit scheme gears up for launch
EBA Clearing, the European payment services provider owned by 62 European banks, has reported that its MyBank Mandate pilot scheme, which allows online merchants, public institutions and utility companies in Europe to collect SEPA direct debits online, has passed the first and second phases of testing before it launches later this year.
Saxo Bank debuts retail and institutional futures spread trading
Denmark’s Saxo Bank has introduced futures spread trading onto its online trading and investment platform for retail and institutional clients, in a move the bank says will give investors access to a low-volatility trading style.
Greece’s derivatives market adopts LSE reporting service
Greece’s Hellenic Exchanges Group, which runs the Athens Stock Exchange and Athens Derivatives Exchange, has chosen to buy services from the London Stock Exchange to help it cope with tough new European trade reporting rules.
EMIR trade reporting “untrustworthy, incomplete and flawed”
Europe’s trade repositories have reported a largely smooth transition, following the deadline under EMIR on 12 February – but behind the scenes deep questions remain about the viability of the European Commission’s ambitious derivatives reform.
