Regulation & Compliance

Trade bodies criticise SEC’s plan for consolidated audit trail

The US Securities and Exchange Commission’s plans for its consolidated audit trail (CAT) for securities markets -- which the SEC wants up and running in 2017 -- have been criticised in comment letters from two leading trade associations. Described as “the largest financial IT project of all time”, the idea of a the giant data repository for… »

Fidessa heralds “new phase of recovery” in markets

Fidessa, the London-listed trading and data systems vendor, says that regulatory changes such as the 2018 implementation of MiFID II in Europe and the planned Consolidated Audit Trail in the US will help offset the “increased headwind” of consolidation and closures among the company’s customer base this year. Announcing 2016 preliminary results and a 9%… »

MAS updates outsourcing requirements

MAS updates outsourcing requirements

The Monetary Authority of Singapore (MAS) has added a section on cloud computing to its newly updated guidelines for financial firms on outsourcing technology services and has scrapped its requirement that financial firms notify the MAS of new material outsourcing arrangements they enter into. The regulator had announced its intention to revise its 2004 outsourcing… »

New York Fed to set new expectations for IT risk management by banks

New York Fed to set new expectations for IT risk management by banks

The Federal Reserve Bank of New York is understood to be working on revised and more detailed guidelines for financial firms in their management of outsourced IT risk, for release later this year. It is understood that that the New York Fed believes that banks need to do additional work to ensure they have the right risk… »

FCA gives green light to the cloud

The FCA has published a paper on guidance for cloud outsourcing. The regulator has confirmed that it does not see any fundamental reason why cloud services cannot be implemented, as long as they are given: “Appropriate consideration, in a manner that complies with our rules." According to the FCA, a lack of oversight over outsourced… »

SEC fines Citigroup broker-dealer $7 million for trade reporting software fault

SEC fines Citigroup broker-dealer $7 million for trade reporting software fault

The US Securities and Exchange commission (SEC) has fined Citigroup’s broker-dealer subsidiary CGMI a record $7 million dollars for failing to submit accurate data in response to its electronic blue sheet (EBS) requirement. A software error resulted in Citigroup Global Markets, Inc. (CGMI) failing to submit reports for 26,810 securities trades over a 15 year… »

Regulators say systems must be up and running two hours after attack

The Bank of International Settlement’s Committee on Payments and Market Infrastructures (CPMI), together with the International Organization of Securities Commissions (IOSCO), has published a report advising financial markets infrastructure (FMIs, a category that includes important payments systems and clearing houses) on how to improve their cyber resilience. The joint working group advises finan... »

Danish and Dutch market supervisors take the heat off algos

Since the “Flash Crash” of May 2010 regulators have been concerned to establish just how dangerous algorithmic trading, and in particular high-frequency algorithmic trading, might be. For example, can algorithms used by one firm be provoked by antagonistic algorithms used by another firm into panic selling? Under MiFID II, which comes into force in January… »

Singapore regulator to form cloud computing guidelines

The MAS will provide guidance for cloud services

Lim Hng Kiang, deputy chairman of the Monetary Authority of Singapore (MAS), has said the regulator will revise its 2004 outsourcing guidelines to recognise the arrival since then of cloud services for financial firms. Speaking on June 28th at a dinner hosted by the Association of Banks in Singapore, Kiang also said that the new… »

New EU data protection rules carry clout

Software developers who use customer's personal data in test environments should get to know the European Union’s General Data Protection Regulation (GDPR), which has now been approved by the European Parliament. The GDPR is designed to protect the privacy of consumer data gathered by firms operating in the EU and, while European regulators already have… »

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