Regulation & Compliance

Flash Boys Might Keep Trade Code Secret as CFTC Mulls Tweaks

The requirement, which is part of a broad package of new rules unveiled last November, is one of the measures the Commodity Futures Trading Commission may tweak, Chairman Timothy Massad said during an interview Tuesday with Bloomberg News in Washington. He said the regulator is planning to propose those modifications before the end of the… »

IBM moves into regtech with acquisition of Promontory Financial Group

IBM is planning to acquire Promontory Financial Group, a regulatory compliance consulting firm headquartered in Washington DC. The technology supplier will combine Promontory's regulatory expertise with the power of Watson, its data analytics and machine learning platform. No financial details of the deal, which is set to close in late 2016, were revealed. The compliance… »

Russia Weighs Replacing IBM, Microsoft With Open-Source Software

The State Duma, Russia’s lower house of parliament, is drafting a bill to restrict government agencies from buying licensed software, giving preference to open-source software. This would complement legislation that curbed state purchases of foreign programs last year, restricting the choice to about 2,000 local software makers. "Many local software firms are offering products based… »

FCA says cyber attacks on the rise

UK Financial firms have been hit by cyber criminal 75 times this year, a marked increase from the five reports filed in 2014, said the FCA’s director of specialist supervision Nausicaa Delfas at a recent conference on cyber security. This might be partly attributable to greater transparency in the financial sector: “Whilst this significant increase… »

Exchange trade body publishes cyber resilience principles

The World Federation of Exchanges (WFE), an industry body that represents more than 200 exchanges and clearinghouses, has published a set of principles on cyber resilience. The WFE says these are intended to complement a paper released on June 29th by a joint Committee on Payments and Market Infrastructures (CPMI) and International Organization of Securities… »

BofA fined by SEC for mini-flash crash lapses

Bank of America Corp.’s Merrill Lynch unit was fined $12.5 million to settle allegations that the broker’s weak controls led to multiple orders being sent to markets, resulting in mini-flash crashes. The bank set its internal trading limits too high, so they were ineffective and caused market disruptions on at least 15 occasions from late… »

Speed traders exploit UK dark pools, but not enough to matter

(Bloomberg) -- High-frequency traders are taking advantage of slower data connections used for U.K. dark pools, but it’s not costing investors enough to outweigh the usefulness of the trading venues, a report published by the Financial Conduct Authority found. About 3.5 percent of the time, the stock prices used for trading in the dark venues are… »

CFTC adopts new rules for cyber security testing

The US Commodity Futures Trading Commission (CFTC) has voted to adopt new rules to govern security testing for contract markets, swap execution facilities, and swap data repositories as well as derivatives clearing organisations. These amendments are in line with the recently released ‘Guidance on Cyber Resilience for Financial Markets’ published by the Bank of International… »

Bank of England weighs merits of digital currency

Victoria Cleland, Chief Cashier at the Bank of England, has reiterated the Bank of England’s commitment to investigating central bank-issued digital currency (CBDC). The Bank of England first brought up the possibility of a government-sponsored digital currency in a February 2015 research paper, that inspired UCL researchers to develop RSCoin, a prototype for a CBDC.… »

Hong Kong opens door to fintech

Hong Kong. Credit: Mike Behnken. Following in the path of London and Singapore, Norman T.L. Chan, chief executive at the Hong Kong Monetary Authority (HKMA) announced the launch of a fintech innovation hub and a supervisory sandbox at the Treasury Markets Summit 2016. Chan said that there was a widespread perception that: “The development of… »

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