Regulation & Compliance

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 »

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 »

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