Regulatory

The International Capital Market Association is spending increasing time analyzing market structure issues arising from electronification of processes and the application of new technologies. This is on the agenda of…

Report: comparing 26 fintech hubs in emerging markets

November 16, 2018

Anna Reitman

News and Notes – Fintech

Ernst & Young, fintech, Regulatory

Artificial Intelligence, Technology

A fintech ecosystem comprises tech-savvy start-ups and scaleups, regulators, governments, traditional institutions, investors, and talent institutions. Regulators are tasked with the challenge of evolving with the industry. They need to…

Fintechs must understand how cybersecurity rules are unfolding

September 14, 2018

Anna Reitman

banks, cybersecurity, fintech, Regulatory

Your executive board has just been notified of a spammy-looking demand from “North Korean” attackers to pay ransom on threats of releasing sensitive client information: What do you have to…

More on handicapping the odds of a repo carve out for the US Leverage Ratio

July 25, 2018

Europe, Repo, SOFR

Europe, Federal Reserve, OFR, Regulatory, Repo, SOFR, topstory

At our Rates & Repo 2017 conference, we proposed taking bets on whether regulators would adopt the US Treasury’s recommendation of excluding Treasuries from the calculation of the Supplementary Leverage…

One golden source data repository is necessary for smart regulation

July 9, 2018

Michael Cyrus

Big Data, Europe, Regulatory

Big Data, DekaBank, Europe, Michael Cyrus, Regulatory, smart regulation, topstory

When discussing data for regulatory reporting, the European Union currently suffers from a burdensome approach to reporting across multiple and often inconsistent regulations. A golden source of data for regulatory…

Regulatory reporting generates huge data sets, but what happens next?

June 28, 2018

Andrea Ferrise

Big Data, Europe, Regulatory, Technology, Trade Repositories

Big Data, collateral, LEI, Regulatory, topstory, Trade repositories, Unavista

The lure of big data to support regulatory oversight of risk, collateral chains and market behavior is strong, but regulators must be ready for big data analytics. This creates a…

Where do SFTs fall in the FRTB? There appears to be more than one answer

June 26, 2018

Basel III, Regulatory

FRTB, Regulatory, Repo, securities finance transactions, Securities Lending, topstory

In this article we look at arguments for where Securities Finance Transactions (SFTs) fall in the Fundamental Review of the Trading Book (FRTB). The answer is either the trading book…

US single counterparty credit limit rules finalized – there are some important nuances here (Premium)

June 19, 2018

Credit Exposure, Federal Reserve, Regulatory, US

credit limits, Federal Reserve, Regulatory, SCCL, topstory

The Federal Reserve has released final rules for single counterparty credit limits (SCCL) to go live for GSIBs on January 1, 2020. The headlines are clear: a 15% credit exposure…

SFTR, Trade Data Repositories and Transparency: An Industry Challenge from the Inside Out

February 15, 2018

Mark Ellis

Europe, Regulatory, Trade Repositories

NEX, Regulatory, SFTR, topstory, Trade repositories

Regulators have made a call for substantial transparency in the form of the Securities Financing Transaction Regulation (SFTR). The data that must be delivered to trade repositories is comprehensive, patchily…

Our analysis of the US Treasury October 2017 report on Capital Markets (Premium)

October 10, 2017

Derivatives, Dodd-Frank, Regulatory, Repo, Securitization, US

Core Principles, derivatives, Dodd-Frank, Regulatory, Securitization, topstory, US Treasury

Last week the US Treasury released “A Financial System That Creates Economic Opportunities: Capital Markets,” part two of their major review of regulations in financial markets. Here’s our analysis of…

How fast could deregulation occur in US financial markets? Comments from Fed Vice-Chair Stanley Fischer suggest some answers

August 22, 2017

Basel III, Federal Reserve, Regulatory

Federal Reserve, Leverage Ratio, Regulatory, Stanley Fischer, topstory, US Treasury

While there may be some excitement in the air about US deregulation, last week Federal Reserve Vice-Chairman Dr. Stanley Fischer eviscerated critics of Dodd-Frank by saying that deregulation would be…

Big Data, little lies, big problems – how Big Data can manipulate algorithmic trading

August 21, 2017

Big Data, Market infrastructure, Regulatory, SEC, Technology

Big Data, compliance, Regulatory, sec

Add a new stock manipulation concern to the list: Big Data. Every piece of information mined out of Big Data by algo systems is suspect, and subject to hacking and…

How important is balance sheet management in prime brokerage today? Look at compensation packages (Premium)

June 27, 2017

Basel III, Dodd-Frank, Hedge Funds, Prime Brokerage, Profitability, Regulatory, US

bank capital, Leverage, Prime Brokerage, Regulatory, topstory

In our survey of US prime brokers released today, we looked at the relationship between balance sheet optimization with hedge fund clients and employee compensation. We followed the thinking that…

IBM and Promontory bring Watson AI to regulatory technology

June 21, 2017

Basel III, Big Data, Credit Exposure, Dodd-Frank, Fintech, Regulatory, Risk Management, Technology

artificial intelligence, Digital Reasoning, financial technology, fintech, IBM, Regulatory, topstory

IBM provided a briefing on a major new initiative, announced on June 14th, that they are bringing their Watson technology to the realm of regulatory compliance. Here is what we…

Title Transfer Collateral Arrangements – European and US rules

June 19, 2017

Basel III, Collateral Management, Derivatives, Europe, Re-Hypothecation, Regulatory, Repo, Securities Lending

Basel capital rules, MiFID II, Regulatory, title transfer collateral arrangement, topstory, TTCA

Title Transfer Collateral Arrangements (TTCA) are executed between parties engaged in bilateral securities lending, bilateral repo or bilateral derivatives. While these arrangements are not new, having been enshrined in regulation…

Finadium: Scenarios for the Next Collateral Crisis – download a free excerpt

May 4, 2017

Central Counterparties, Collateral Management, Derivatives, Investments, Liquidity Management, Market infrastructure, Regulatory, Repo, Technology

CCPs, Central Banks, collateral management, dealers, Regulatory, Repo, technology, topstory

A new research report from Finadium looks at scenarios for a full-blown collateral crisis that could arise over the next two years. These scenarios are all based on real-world situations…

NY Fed President Dudley defends principles of regulatory reform

April 20, 2017

Basel III, Dodd-Frank, Federal Reserve, Market infrastructure, Systemic Risk, US

Basel III, Dodd-Frank, Federal Reserve, politics, Regulatory, topstory

1

As the US Congress turns more attention to potential loosening of regulation of the financial system, important voices in the Federal Reserve continue to defend key aspects of Dodd-Frank, and…

Tough challenges for prime brokers and MiFID II compliance

March 23, 2017

Europe, Prime Brokerage, Regulatory, Securities Lending

Europe, Margin, MiFID II, Prime Brokerage, Regulatory, topstory

This article looks at the questions of conflicts of interest and co-mingling of interests from the view point of the prime broker/borrower. This is a follow up to a previous…

Taxation, transparency and blockchain

March 21, 2017

Bitcoin, Blockchain, Derivatives, Regulatory, SEC, Tax, US

bitcoin, blockchain, IRS, OTC derivatives, Regulatory, sec, topstory

Last week brought two pieces of news that focus attention on some of the regulatory challenges that blockchain-based public markets are up against. This has direct implications for trading in…

Independent research, fee splits and agency securities lending under MiFID II

March 7, 2017

EMIR, Europe, Regulatory, Securities Lending

bank regulation, Europe, MiFID II, Regulatory, topstory

MiFID II is becoming a major focus of attention for banks and other financial firms. How agent lenders charge for research, including market data and performance benchmarking, is a big…

Final customer collateral segregation rules published by Canadian Securities Administrators (CSA)

February 21, 2017

Collateral Management, Derivatives, Re-Hypothecation, Regulatory

Canada, collateral, collateral segregation, CSA, Regulatory, topstory

The Canadian Securities Administrators (CSA) has issued final rules around the segregation of customer collateral used to secure or margin cleared derivatives transactions. The rules apply to all registered clearing…

PRMIA survey: IT spend for regulatory compliance will continue to increase

December 21, 2016

News and Notes

compliance, IT, PRMIA, Regulatory

PRMIA is pleased to share the results of an online survey focused on regulatory compliance and the impact of technology. Risk managers and compliance professionals are pressured by the answers…

US elections offer lessons on systemic risk and interconnected markets

November 14, 2016

Asia, Basel III, Dodd-Frank, Europe, Regulatory, Systemic Risk, US

elections, financial markets, Regulatory, topstory, US

The global market reaction to US elections last week confirmed that when the US is the site of the disruption, the performance of global markets is highly correlated either positively…

Wednesday News Roundup: everyone can be a SIFI, the staying power of regulatory arbitrage (Finadium subscribers only)

January 15, 2014

CCP, Collateral Management, Federal Reserve, Regulatory

Federal Reserve, FSB, Regulatory, SIFIs

A roundup of news and interesting commentary we haven’t otherwise gotten to. Continue reading

Lessons from Lehman: A look at Repo 105

September 10, 2013

Jonathan Cooper

Lehman

leverage ratios, Regulatory, Repo 105

In observance of the 5th anniversary of the Lehman bankruptcy filing, we are putting together a series of posts with the top securities financing lessons learned from the events leading…

Hedge funds fill the vacuum in fixed income when banks exit

May 9, 2013

Jonathan Cooper

Dodd-Frank, Hedge Funds, Prime Brokerage, Regulatory, Repo, Shadow Banking, Uncategorized

Basel III, Dodd-Frank, Regulatory, Repo

There was an excellent article published on May 7th in Bloomberg Businessweek entitled “Hedge Funds Rush Into Debt Trading With $108B as Banks Trim Risk”, written by Lisa Abramowicz, Miles Weiss,…

Comparing the recent SunGard/PRMIA survey to the conversation on liquidity vs. transparency

February 11, 2013

Jonathan Cooper

Derivatives, Dodd-Frank, Regulatory, Shadow Banking

Basel III, Dodd-Frank, OTC derivatives, PRMIA, Regulatory, regulatory capital, SunGard Adaptiv

In a recent survey released by SunGard Adaptiv and the Professional Risk Managers International Association (PRMIA) there was an interesting question on the impact of new capital requirements. The results…

Dudley’s speech on how to fix wholesale funding floats some controversial ideas about tri-party

October 13, 2011

Regulatory, Securities Lending

Hong Kong, Regulatory, Securities Lending, Short selling