Posts by Anna Reitman

cyber resilience, cybersecurity, Securities and Exchange Commission

The Securities and Exchange Commission published observations related to cybersecurity and operational resiliency practices taken by market participants. SEC chair Jay Clayton said in a statement that market participants should…

WEF releases CBDC toolkit for policymakers

January 28, 2020

CBDC, WEF

The World Economic Forum’s Central Bank Digital Currency Policymaker Toolkit seeks to address the need for a concise, high‑level CBDC decision framework that provides comprehensive and risk‑aware information to policymakers, and…

Australia central bank outlines case for wholesale CBDC

January 28, 2020

Reserve Bank of Australia, wholesale CBDC

Over the past few years, interest in privately issued cryptocurrencies has stimulated a parallel discussion about whether central banks should issue a new form of electronic money in the form…

BBVA: 5G, quantum computing and blockchain will mark the next decade in banking

January 24, 2020

5G, artificial intelligence, BBVA, blockchain, decentralized, Quantum Computing

2019 has seen the first 5G networks rolled out and the first achievements in quantum computing, as well as the establishment of various financial initiatives using blockchain. These three technologies…

BIS follow up survey shows EM momentum for CBDC

January 24, 2020

BIS, CBDC, Emerging Markets

A Bank for International Settlements survey shows that central banks are undertaking extensive work on central bank digital currencies. Globally, emerging market economies are moving from conceptual research to intensive…

Get the weekly SFM update – our January 24 newsletter is online

January 24, 2020

Top Stories: Evidence on whether passive funds are disrupting the price discovery mechanism; Europe’s securitization markets adapt to risk transfer and balance sheet requirements (Premium); “Transparency and accountability”: will Fed…

NIST releases privacy framework, defines “AI”

January 23, 2020

AI ethics, data privacy, ethical AI, NIST

The National Institute of Standards and Technology (NIST) has released Version 1.0 of the NIST Privacy Framework: A Tool for Improving Privacy through Enterprise Risk Management, developed in collaboration with…

Deutsche Börse and Bundesbank: DLT tech “suitable for the live operation of a financial market infrastructure”

January 23, 2020

Bundesbank, collateral management, Deutsche Borse, DLT, exchanges

The Deutsche Bundesbank and Deutsche Börse have presented the results of a concept study on the use of distributed ledger technology (DLT) in the area of collateral management. This study…

Europe’s securitization markets adapt to risk transfer and balance sheet requirements (Premium)

January 22, 2020

Securitization

Basel capital rules, collateral, ESMA, LCR, PCS, SRT, STS, topstory

European Union securitization legislation was supposed to pave the way for a resurgence of the market. We speak with Ian Bell, head of PCS, about the state of the market…

Central banks to assess potential cases for digital currencies

January 21, 2020

Bank for International Settlements, Bank of Canada, Bank of England, CBDC, ECB, Sveriges Riksbank, Swiss National Bank

The central banks of Canada, UK, Japan, Europe, Sweden and Switzerland, together with the Bank for International Settlements (BIS), have created a group to share experiences as they assess the…

Broadridge acquires European regtech FundsLibrary

January 21, 2020

asset management, Broadridge, FundsLibrary, regtech

Broadridge Financial Solutions and FundsLibrary announced that Broadridge has entered into an agreement to acquire FundsLibrary, a leader in fund document and data dissemination in the European market, from its…

EBA scrutinizes big data and advanced analytics in banking

January 20, 2020

advanced analytics, AI ethics, Big Data, EBA, ethical AI

The European Banking Authority (EBA) published a report on the recent trends of BD&AA (big data and advanced analytics) in the banking sector and on the key considerations in the…

Canada securities regulators publish guidance for crypto trading

January 20, 2020

crypto derivatives, crypto regulation, cryptoassets, CSA

The Canadian Securities Administrators published guidance to help crypto asset trading entities to determine situations where securities legislation may or may not apply. The relevant determination will depend on the…

Get the weekly SFM update – our January 17 newsletter is online

January 17, 2020

Top Stories: The door opens for an SA-CCR in securities finance; Webinar replay: An Intro to Collateralized Transactions for Students and New Professionals (Premium); Cash-collateral markets taking shape on the…

BBH: 2020 will be a year of regulatory clarity and precision

January 16, 2020

BBH, data management, Regulation

Brown Brothers Harriman has released its 2020 Regulatory Field Guide, containing insights from the firm’s regulatory experts and the asset management industry. Regulators, to a much greater degree than in…

Cash-collateral markets taking shape on the blockchain (Premium)

January 15, 2020

Blockchain, Repo, Securitization, Technology

blockchain, cash management, Dai, Ethereum, ICOs, MakerDAO, repo markets, Securitization, stablecoin, topstory

There’s more than a few misconceptions about how decentralized finance (DeFi) is working its way into the traditional finance industry. We spoke with Akiva Dubrofsky, CEO of Akiva Capital Holdings,…

AMF’s chair highlights Brexit, SFTR data, AI-enabled fraud in 2020 priorities

January 14, 2020

AMF, Brexit, SFTR

Robert Ophèle, chair of France’s financial regulator Autorité des marchés financiers (AMF) presented the regulator’s priorities for action and supervision for 2020. Chief among those priorities is managing Brexit because…

NY Fed: a pre-mortem analysis of cyber risk in the US financial system

January 14, 2020

cybersecurity, Federal Reserve of New York

NY Fed researchers model how a cyber attack may be amplified through the US financial system, focusing on the wholesale payments network. Authors Thomas Eisenbach, Anna Kovner, and Michael Junho…

Eurekahedge: AI funds up 5.6%, crypto funds down 6% in December

January 14, 2020

artificial intelligence, cryptocurrency, Eurekahedge, hedge funds

Fund managers using AI/machine learning strategies returned 0.55% in December. On a year-to-date basis, the Eurekahedge AI Hedge Fund Index was up 5.63%. The Eurekahedge AI Hedge Fund Index is…

Refinitiv at WEF: ESG data is fundamental, not alternative

January 13, 2020

alternative data, Data, ESG

Businesses today face significant environmental and social challenges that pose risks to their potential to sustain growth. At the same time, the regulatory landscape is evolving, new technologies are emerging…

FT: central banks split on climate change era monetary policy

January 13, 2020

Central Banks, climate change

There is now a consensus among central banks that the growing risks to financial stability must be addressed urgently. Mark Carney, in his twin roles of governor of the Bank…

P&I: Institutional money managers on tech investment in 2020

January 13, 2020

BNY Mellon, money market funds, PGIM, State Street, Vanguard, Willis Towers Watson

For money managers, implementing tech-driven efficiencies throughout the business will contribute to a competitive edge in the current landscape, said Taimur Hyat, chief operating officer at PGIM in Newark. “I…

Stanford’s 2019 AI report shows financial industry trends on investment, hiring

January 11, 2020

AI Index, artificial intelligence, fintech, Stanford University

Published by Stanford University, the AI Index Report tracks, collates, distills, and visualizes data relating to artificial intelligence. Here are some of the highlights related to finance. When it comes…

Get the weekly SFM update – our January 10 newsletter is online

January 10, 2020

Top Stories: Problems with US SEC filings on securities lending: the case of BMO Global Asset Management; DataLend’s Nancy Allen on 2019’s market trends and tech (Premium); We size the…

DLA Piper: White House issues AI principles, tells agencies to minimize regulatory burden

January 9, 2020

AI ethics, ethical AI, regulators, US Congress, White House

The Trump Administration has unveiled its long-awaited guidelines governing how federal agencies should develop and use artificial intelligence (AI) technologies. On January 7, the White House Office of Management and…

Nasdaq adds data discovery to trade surveillance

January 9, 2020

data analytics, market surveillance, Nasdaq

Nasdaq launched a data discovery capability within Nasdaq Trade Surveillance, which is already operating in multiple firms. Compliance teams will be able to extract additional insights and context for market…

DataLend’s Nancy Allen on 2019’s market trends and tech (Premium)

January 8, 2020

Securities Lending, Technology

DataLend, Equilend, machine learning, reconciliation, Specials, topstory

More supply and lower revenues defined securities lending in 2019, which found borrowers sitting on the sidelines maintaining a long bias. We spoke with Nancy Allen, global product owner at…

ESMA assesses EU financial market impact of circuit breakers

January 7, 2020

circuit breakers, ESMA, Liquidity, volatility

The European Securities and Markets Regulator (ESMA), the EU’s securities markets regulator published a study on the market impacts of circuit breakers. Based on Morningstar real-time data ESMA has created…

IHS Markit’s 2019 securities lending snapshot: H1 underperformance, Q4 upswing

January 7, 2020

IHS Markit, market data, Securities Lending

Global revenue falls 6.3% to $10.1 billion 2019 delivers second-highest annual revenue in the last decade In North America, equity specials shine in 2nd half of year Fee compression weakens…

FT: US on high alert for cyber attacks

January 6, 2020

cybersecurity

The US public and private sector are on high alert for cyber retaliation from Iranian state-backed hackers following the killing of the country’s top military commander Qassem Soleimani in a…

2019 figures for CME bitcoin futures, options launching in 2020

December 29, 2019

bitcoin futures, CME, CME Group

It’s been about two years since CME launched bitcoin futures in December 2017. Since then, as spot bitcoin prices have experienced multiple up and down cycles, a wide range of…

Vision Hill: an institutional take on the 2019/2020 digital asset market

December 24, 2019

News and Notes – Fintech, Uncategorized

asset management, digital assets, institutional crypto, Vision Hill

Vision Hill, a digital asset manager, assessed 2019 as “an exceptionally interesting and productive year for the digital asset industry” and expects 2020 to be bigger. The firm does not…

Cyber remains top risk in OFR 2019 review, insurers question claims exposure

December 24, 2019

cybersecurity, Office of Financial Research

The Office of Financial Research’s annual report to Congress assesses financial stability. For several years, respondents to a survey of industry leaders have ranked cyber risk as the top risk…

SIFMA’s CEO updates on first global cybersecurity exercise

December 20, 2019

AFME, ASIFMA, cybersecurity, SIFMA

SIFMA released the following statement from Kenneth Bentsen, SIFMA president and CEO, upon completion of SIFMA’s November 7 global industry-wide Quantum Dawn V cybersecurity exercise. SIFMA, in its crisis coordination…

Get the weekly SFM update – our December 20 newsletter is online

December 20, 2019

Top Stories: What we heard in London: negative rates, emergency repo, advanced tech (Premium); Webinar: Introduction to Collateralized Transactions for Students and New Professionals; Should you listen to Ray Dalio?…

ECB exploring anonymity in central bank digital currencies

December 19, 2019

CBDC, data privacy, ECB

Under the coordination of the ECB, the European System of Central Banks (ESCB) has established a proof of concept for anonymity in digital cash, aka central bank digital currency (CBDC),…

Sweden’s central bank raises repo rate to zero

December 19, 2019

negative interest rates, Riksbank, Sweden

Sweden’s central bank, Riksbank, announced it will be ending negative rates policy, stating that inflation has been close to the target of 2% since the start of 2017 and that…

Bank of Japan announces ETF lending facility

December 19, 2019

Bank of Japan, ETF, Securities Lending

The Bank of Japan decided to introduce the ETF lending facility, through which it can temporarily lend its ETFs holdings to market participants, with the aim of improving the liquidity…

BIS research: machine learning versus traditional credit scoring models

December 19, 2019

BIS, credit, machine learning

Financial technology (fintech) is taking on an ever more important role in lending decisions. This paper compares the predictive power of credit scoring models based on machine learning techniques, as…

Fed’s Brainard updates on stablecoins, CBDC and challenges ahead

December 19, 2019

Uncategorized

CBDC, Federal Reserve, Lael Brainard, stablecoins

The emergence of cryptocurrencies — and particularly stablecoins — has raised important questions for central banks and other authorities, including on the appropriate regulatory framework. In the United States, the…

DTCC senior executives’ predictions for 2020

December 19, 2019

2020, DTCC

Mike Bodson, President & CEO: 2020 will be a year dominated by the impact of geopolitical events, digitization and tokenized securities. On geopolitics, the execution of Brexit, ongoing trade tensions…

ESMA combats “un-due short-termism” in markets, no action on seclending

December 19, 2019

ESG, ESMA, Securities Lending, Short selling

The European Securities and Markets Authority (ESMA) has published its findings on potential undue short-term pressures in securities markets. The European Commission (EC) had asked the three ESAs (ESMA, EBA…

AFME, FIA, ICMA, ISDA and ISLA publish Master Regulatory Reporting Agreement

December 19, 2019

AFME, EMIR, FIA, ICMA, ISDA, ISLA, MMRA, SFTR

The Association of Financial Markets in Europe (AFME), Futures Industry Association (FIA), International Capital Market Association (ICMA), International Swaps and Derivatives Association (ISDA) and International Securities Lending Association (ISLA) have…

FSB report assesses vulnerabilities of leveraged loans and CLOs

December 19, 2019

CLO, FSB

The Financial Stability Board (FSB) published a report on Vulnerabilities associated with leveraged loans and collateralised loan obligations (CLOs). The report assesses the financial stability implications of developments in the…

Fintech, interest rate benchmarks, stablecoins top FSB’s 2020 priorities

December 18, 2019

benchmark reform, fintech, FSB, regtech, stablecoins, suptech

The Financial Stability Board (FSB) published its work programme for 2020. The FSB’s work priorities for 2020 reflect the evolving nature of the global financial system and associated risks to…

ICMA publishes DLT regulatory directory and brief

December 18, 2019

crypto regulation, DLT, ICMA

There have been a growing number of use cases of Distributed ledger technology (DLT) in the international bond markets over the last three years. While the majority of transactions have…

What we heard in London: negative rates, emergency repo, advanced tech (Premium)

December 18, 2019

Technology

AMIC, Battle of the Quants, ICMA, London, Quantum Computing in Finance, topstory

Finadium attended a number of London conferences at the end of the year, including ICMA’s Asset Management and Investors Council annual conference, Battle of the Quants Big Data, and Quantum…

New York Fed’s general counsel on US regulations and approaches to cryptocurrencies

December 13, 2019

crypto regulation, Federal Reserve of New York, Securities and Exchange Commission, US