Regulation & Compliance

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 »

SEBI extends software testing requirements to commodity firms

The Security and Exchange Board of India (SEBI) has said that from April 2016 commodities traders will be subject to the same software testing guidelines that apply to Indian securities exchanges SEBI’s 2013 guidelines set out how brokers operating on the securities exchanges must test software; how the exchanges must implement an approval process for the software »

FCA proposes “virtual sandbox” for fintech launches

FCA-building

The UK’s Financial Conduct Authority (FCA) has told fintech companies they should consider creating a “virtual sandbox” where new technologies can be tested using shared databases to simulate markets. The FCA says it would provide the databases of market prices and other information. The idea is one result of the FCA’s Project Innovate, designed to »

SQS partners with TraderServe for MiFID algo testing

Eddie-Thorn-SQS

SQS, the London-listed software quality specialists, has partnered with trading software specialist TraderServe, to provide investment firms with a test service for compliance with sweeping new MiFID II rules regulating algorithmic trading. Although the deadline for the implementation of MifID II has been delayed for a year until the start of 2018, SQS and TraderServe »

“Get to grips with IT risk” say Irish, German central banks

Senior officials from both Central Bank of Ireland and the Deutsche Bundesbank have warned bank management teams that they must work harder to ensure they have the right culture in place to tackle IT risks. “We believe that there is significant weakness in this area and will be seeking change,” said Gerry Cross, the Irish central bank’s »

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