SEPA Uncertainty
Big banks and their large corporate clients are in the final stages of preparation for the SEPA end date of February next year, but what about the smaller clients in the non-euro countries?
Risk Management
ESMA guidelines could reshape European market making
New guidelines published earlier this month by European regulator ESMA could have a major impact on market making across Europe, according to Matthew Coupe, director of regulation and market structure at NICE Actimize.
EU/US face-off over FISA on the cards
It has been clear for some time now that some of the regulations coming into force around the globe contain contradictions and inconsistencies. A large part of the work done by JWG, Banking Technology‘s partner for our regular RegTech coverage, has been in identifying these, working out their impact on systems and processes and what issues […]
European exchanges unveil MSCI derivatives
European exchanges Eurex and NYSE Liffe are soon to list a host of new derivatives, based on MSCI indices. From March, market participants will be able to trade futures and options based on the MSCI World, MSCI Europe, MSCI All Countries Asia Pacific ex-Japan and futures on the MSCI Frontier Markets.
National Bank of Abu Dhabi keeps watch over ATMs
The National Bank of Abu Dhabi has adopted a monitoring service from Canadian technology company Inetco Systems, which it says will enable it to better keep track of its ATMs and ensure they are working properly.
Recovery & Resolution: the operational effects of bail-in
Recovery and resolution plans have been on the minds (and to-do lists) of ops and tech departments at the world’s biggest banks ever since they were mandated by the G20 in 2011.
Will Dodd-Frank trade reporting prepare you for EMIR?
On February 28, most of the approximately 70 registered swap dealers will stumble across the finishing line for the remaining asset classes of the CFTC implementation of Dodd-Frank trade reporting regulations. Some may be forgiven for breathing a sigh of relief.
Legal Entity Identifiers: between a “ROC” and hard decisions
As the global method of identifying entities and their ownership structures, the Legal Entity Identifier forms a central part of the G20’s crisis-prevention toolbox. After a few chaotic years of LEI debate and design, regulators are finally nearing the long anticipated starting line for use of the world’s first singular identifier.
HFT: time to talk about how?
2012 seemed like the year of regulators taking a prolonged look at computer trading – defining what it might be, its potential effects, why it may be problematic. It is still far from clear that we have answers to these fundamental questions.
OTC derivatives reforms must be global, says DTCC
As new rules for the reporting of OTC derivatives draw closer around the globe, US post-trade services utility the DTCC is positioning itself as the provider of a global network of trade repositories – but OTC derivatives reform will only work if consistent measures are taken everywhere, says Stewart Macbeth, president and chief executive at the DTCC.
Securities lending: illuminating data?
Regulatory data collection tools have been refined, standardised identifiers nearly constructed and more frequent and granular reporting rolled into regulation. Now that regulators have this mass of data, what is the next step in linking it and putting it to use?
Activ expands Canadian coverage ahead of “naked access” ban
Market data and technology company Activ Financial has expanded its risk gateway tool to cover all Canadian exchanges, ahead of new rules that will require market participants in Canada to have pre-trade risk controls in place across all asset classes from next month.
MarkitSERV and Misys team for FX derivatives clearing service
OTC derivatives trade processing service MarketSERV and banking technology provider Misys have partnered to create a service for CCP clearing of FX derivatives trades.
Commerzbank adopts visual security tool for mobile payments
Germany’s Commerzbank has adopted a visual transaction signing tool from British security firm Cronto for its online banking customers, designed to protect against Trojan malware.
BAML targets Asia Pacific treasury management
Bank of America Merrill Lynch has launched a treasury management reporting tool, CashPro Accelerate, in Asia Pacific.
Osborne drags UK financial system kicking and screaming into 12th Century
Just a day after Osborne vowed to drag the UK payments systems into the 21st century by, er, improving cheque clearing times, a ceremony dating back to the 12th century was getting underway in the City of London.
Funds managers sign with Eurex for OTC derivatives clearing
Next month, the European Commission’s EMIR regulation on the central clearing and reporting of OTC derivatives is due to take effect in Germany. Investment managers Insight Investment and OFI Asset Management have begun clearing OTC derivatives on Eurex via its new service, EurexOTC Clear.
Market abuse highlights vulnerable European equity market
The imposition of an £8 million fine against defunct Canadian day trading firm Swift Trade earlier this week illustrates the potential for abusive strategies that distort markets – and the need for a new approach from regulators, according to Matthew Coupe, director of regulation and market structure at NICE Actimize.
More than a third of euro transactions lack accurate SEPA data
New research from Experian shows that “only 65% of euro transactions have fully accurate destination routing data and 12% of electronic payments made to and from businesses in euros currently contain data errors”.
Banks to go the same way as pubs? OFT boss moots branch sharing to increase competition
UK retail banks could be forced to share branch premises with rivals under plans to increase competition in the market, according to the chief executive of the UK’s Office of Fair Trading, Clive Maxwell.
CME gears up for European OTC deluge
As new rules for the central clearing of OTC derivatives loom ever larger on the horizon in both Europe and the US, technology is helping to make the transition easier – but the kind of contracts being traded may well change, according to CME Group.
Planning for profitability
Regulatory demands and improved profitability are fuelling a move to dynamic capital planning, but few banks have firm plans.
Seller beware
Conduct risk, which places emphasis on providers of credit to treat customers fairly, will challenge them to deliver higher standards of customer support across the whole relationship.
Industry “not ready” for OTC derivatives reform
Four out of five financial institutions are not ready for new regulations governing the trading, reporting and clearing of OTC derivatives, according to a new survey by US communications company IPC.
Washington watchdog raps regulators over Dodd-Frank rule-making
US financial services regulators have not properly evaluated the impact of rules they have proposed or introduced in implementing the Dodd-Frank Act, and should improve their co-ordination says a critical report from a congressional watchdog.
Cameron’s EU speech: a battle of wills
UK Prime Minister David Cameron gave a speech earlier this week in which he promised to hold a referendum on UK membership of the EU by 2018, if he is re-elected. The speech reflects pressures not just in the Conservative party, but fundamental differences in Europe as a whole over how to approach financial markets and the wider economy.
EBA proposes year-end deadline for large bank recovery plans
The European Banking Authority has adopted a formal recommendation to push major EU cross-border banks into developing group recovery plans by the end of this year.
MiFID II faces national challenges
Proposals in Germany that would affect the country’s capital market structure could create problems of regulatory arbitrage when the European Commission’s MiFID II arrives in 2015-16, according to Mark Spanbroek, general secretary at the FIA European Principal Traders Association.
Fightin’ talk: the regulatory backlash begins …
Far from coming out of a post-crisis period of grieving and re-learning how to engage with the wider world, the financial services industry looks like it is returning to its old belligerent self.
French regulator raises temperature of debate in London
A heated argument that erupted between panellists at an event in London yesterday signals deep divides in Europe over the role that financial regulators should take as France and Germany introduce their own national rules.
German HFT proposals earn buy-side support
Market participants have expressed support for controversial new proposals in Germany to control high-frequency trading, including a requirement to obtain a licence or stop trading.
March deadline for code to tackle fixing of interbank lending rates
European regulators have until March to impose a code of conduct on banks contributing to the creation of the Euribor interbank lending rate benchmark. The deadline is included in recommendations published by the European Securities and Markets Authority and the European Banking Authority following their joint work on benchmark rate-setting processes in the wake of the Barclays Libor scandal and other rate-fixing revelations.
Citi targets “dangerous” global collateral shortfall
Citi has established a set of alliances with Clearstream and Euroclear Bank that it says will transform the way broker-dealers manage their collateral, freeing up precious resources as onerous new regulations in the US and Europe burden banks with tougher collateral requirements.
“Fragile” US equity market structure needs attention
The recent market data glitch on US consolidated tape C, in which investors were unable to view Nasdaq-listed stocks, highlights the need for regulation on resilience, according to Frederic Ponzo, managing partner at capital markets consultancy GreySpark Partners.
Thomson Reuters debuts FATCA compliance kit
Thomson Reuters has launched a tool to help financial institutions comply with the US Foreign Account Tax Compliance Act, widely known as FATCA, which requires banks to identify their US customers for tax purposes.
“Lobby wars” will hurt buy-side interests in Brussels says SunGard exec
As the European Commission prepares new rules that will reform Europe’s capital markets, buy-side market participants must be careful to ensure that they are not misunderstood and even side-lined by politicians in Brussels, warns David Morgan, director for trading and client connectivity, capital markets at financial technology provider SunGard.
Regulators should protect investor choice in the dark – TABB Group
New regulations that will affect how banks run crossing networks for their buy-side clients should avoid constraining investor choice by forcing a ‘one-size-fits-all’ approach to trading, according to Miranda Mizen, senior consultant at TABB Group.
Rogue trader terms identified as Switzerland’s oldest bank is forced to close
Ernst & Young has developed new software designed to catch employees engaged in corporate wrongdoing, as Swiss bank Wegelin and Co prepares to cease operations following the firm’s prosecution for helping US citizens evade taxes.
Industry welcomes attempt to clarify alternative investment regulations
Further clarification on the European Union’s Alternative Investment Fund Managers’ Directive, due to come into force in July next year, has been welcomed by the Alternative Investment Management Association, the global hedge fund association.
The ART of risk management
Since the 2007 global financial crisis there has been a lot of debate on potential changes across the banking services industry and the potential consequences. Recent market surveys suggest that surprisingly little progress has been made in risk and compliance management and some lack of clarity as to what to do next. Reacting to regulatory change is one thing, but the real goal is to build clarity and confidence that banks are doing the right thing in the right way at the right time
