Bankers Talk of Being Sold Out as London Waits for Its Own Brexit Deal With Brussels

By Joumanna Bercetche April 6, 2021, CNBCDespite a breakthrough last month, London-based bankers are nervously waiting for Britain and Brussels to agree on a post-Brexit relationship for their financial services industries. The UK and the EU agreed to continue talks...

UK Extends SFTR’s LEI Grace Period by 12 Months

By Oliver Wade April 7, 2021, Global Investor Group The UK’s financial watchdog said on Tuesday that legal entity identifiers (LEI) of non-European Economic Area (EEA) third country issuers will not need to be reported under the UK’s stock...

Stock Clearing Stalwarts Face Increasing Threat From Blockchain

By Philip Stafford April 6, 2021, Financial Times Credit Suisse and broker Instinet said on Tuesday they had settled privately-negotiated stocks deals on a blockchain for the first time, speeding up the completion of share trades to just a...

Get Your COVID Relief Exit Plan Ready, Regulator Tells the G20

By Huw Jones April 6, 2021, Reuters While ending COVID economic relief measures too soon would present more of a threat to financial stability than leaving them in place too long, it was time for G20 countries to decide...

Jamie Dimon Warns Brexit ‘Tipping Point’ May Shift More JPMorgan Staff to Europe

By Paul Clarke April 7, 2021, Financial News JPMorgan chairman and chief executive, Jamie Dimon, warned that Brexit could force the US banking giant to shift all functions currently serving Europe from the UK across to the continent. Dimon...

Swiss Volumes Help London Catch Up With Amsterdam in Share Trading

By Huw Jones April 1, 2021, Reuters The City of London has almost closed the share trading gap with Amsterdam since dealings in Swiss shares resumed in the UK capital following Brexit, figures from Cboe exchange showed on Thursday.Amsterdam...

Brexit Highlights Need for Consolidated Tape

By Thomas Helm March 31, 2021, Practice Insight from IFLR While Tradeweb supports a consolidated tape, it believes any future project should leverage the existing infrastructure and framework rather than create something from scratch. “APA providers have significantly invested...

PIMFA Warns on Post-Brexit Regulation Wave

By Jon Yarker April 6, 2021, FT Adviser PIMFA has specifically identified the Investment Firm Prudential Regime as one for firms to be aware of, due to its similar size and complexity to MiFID II.  IFPR is designed for...

Asset Managers Have a Huge Hole in Their Platform Data

By Bella Caridade-Ferreira and Kevin Okell April 6, 2021, Money Marketing The FCA recently completed a review of product governance across a sample of eight asset management firms. Ironically, given the UK has just left the European Union, its...

Position Limits Revision Could Create ‘Thorny Area’ – FundApps

By Wendy Lisney March 31, 2021, Global Investor Group The lifting of position limits by European markets regulator ESMA reflects a similar policy in the US as regulators seek to roll out COVID-19 recovery packages, according to UK regtech...

Special K-Factors: New Buy-Side Capital Regime Sized to Fit

By Steve Marlin March 30, 2021, Risk In 2019, the European Banking Authority published a draft proposal for the new prudential regime. Under the EU rules, the largest companies – those with balance sheet assets exceeding €30 billion ($35.38...

US Companies Clamoring for Standardized SOFR Rate to Ease Their Libor Systems’ Transition

By Neil Roland April 2, 2021, MLex US corporate treasurers are calling urgently for a single approach to calculating the Secured Overnight Financing Rate that has been designated to replace Libor. Most participants in a webinar last week, which...

A $27 Trillion Challenge Looms as Yen Libor Shift Nears

By William Shaw, Ayai Tomisawa, and Taiga Uranaka April 2, 2021, Bloomberg Japan is emerging as a key area of concern in the global migration away from the London interbank offered rate. With just nine months until yen Libor...

Killing Off Libor Gets Real for Banks on Key Milestone Date

By William Shaw, Silla Brush, and Tasos Vossos April 1, 2021, Bloomberg The UK’s efforts to disentangle itself from sterling Libor by year-end just went up a gear. Starting Thursday, firms should stop issuing new loans, bonds and securitizations...

EU’s Dilemma Deepens Over Post-Brexit Swaps Clearing

By Christopher Whittall April 3, 2021, IFR The European Union will struggle to force a large-scale migration of euro swaps clearing onto its shores without causing serious harm to its own banks as well as EU regulators’ ability to...

China Creates Its Own Digital Currency, a First for Major Economy

By James T. Arredy April 5, 2021, The Wall Street Journal A thousand years ago, when money meant coins, China invented paper currency. Now the Chinese government is minting cash digitally, in a re-imagination of money that could shake...

WFE Stresses Need for Circuit Breakers After COVID

By Wendy Lisney April 1, 2021, Global Investor Group The extreme volatility event sparked by COVID-19 may have passed, but exchanges must stay tuned for other triggers, the World Federation of Exchanges’ head of research has said. “Volatility and...

SEC Maintains Intense Scrutiny of Non-Transparent ETFs

By Jackie Noblett April 1, 2021, Financial Times Active non-transparent exchange traded fund sponsors are providing reams of information to the Securities and Exchange Commission as the regulator conducts intense scrutiny of the products, which it first approved in...

Five Banks to Test FedNow Real-Time Payments System

April 4, 2021, PYMNTS The Federal Reserve’s FedNow program, intended to streamline the clearing and settlement process, will be tested by five Northern California regional banks and three credit unions (CUs), according to a report from North Bay Business Journal. FedNow, which will...

Bill Dudley: Exclude Reserves, Not Treasuries, From SLR

By Sharon Thiruchelvam April 1, 2021, Risk Exempting US Treasuries from the leverage ratio is not necessary to ensure the smooth functioning of the Treasury market, according to William Dudley, former president of the Federal Reserve Bank of New...

Archegos Blowup Puts Spotlight on Gaps in Swap Regulation

By Alexander Osipovich and David Benoit April 1, 2021, The Wall Street Journal The blowup of Archegos Capital Management is spurring calls for tougher regulation of the shadowy swap trades that fueled billions of dollars of losses at global...

Archegos Debacle Reveals Hidden Risk of Banks’ Lucrative Swaps Business

By Robert Armstrong April 1, 2021, Financial Times The Archegos Capital debacle has exposed the hidden risks of the lucrative but opaque equity derivatives business through which banks empower hedge funds to make outsize bets on stocks and related...

US CFTC Official Advises Stricter Oversight of Funds Managing Family Wealth

By Chris Prentice April 1, 2021, Reuters The Commodity Futures Trading Commission (CFTC), the top US swaps regulator, should reverse its loosening of oversight of family offices, a Democratic commissioner said on Thursday in response to the blowup of...

An Archegos Lesson: for Market Transparency, Cash Financing Beats Equity Swaps Every Time

By Josh Galper April 1, 2021, Finadium Regulators and most market participants care about transparency, risk management and liquidity. The Archegos story is another example of why bilateral equity swaps, also called total return swaps (TRS), are a subpar...

Former SEC Chairman Jay Clayton Warns of New Bitcoin Regulations

By Tanzeel Akhtar April 5, 2021, CoinDesk In an interview with CNBC Squawk Box posted Thursday, Clayton said bitcoin had the status as a non-security at the SEC but this does not mean it should not be regulated. full article

Regulators to Lay Out Money Market Fund Reforms in July, Fed’s Quarles Says

By Pete Schroeder March 30, 2021, Reuters A group of financial regulators will lay out recommendations in July to improve the resilience of money market funds and minimize the chance they will need government support in the future, Federal...

Wall Street Faces Yellen’s Scrutiny After Fed Debt-Market Rescue

By Paula Seligson and Craig Torres March 31, 2021, Bloomberg The Federal Reserve saved the corporate bond market after it froze last year. Now regulators want Wall Street to pay the price for that rescue, and the industry is already pushing...

Yellen Signals Scrutinizing Hedge Funds a Renewed FSOC Focus

By Daniel Avis and Robert Schmidt March 31, 2021, Bloomberg President Joe Biden’s council of financial regulators signaled a sharpened focus on hedge funds and whether their trading poses dangers to markets.Treasury Secretary Janet Yellen, speaking at a Wednesday...

Analysis: Archegos Meltdown Set to Intensify Shadow Banking Regulatory Scrutiny

By Michelle Price and Katanga Johnson March 30, 2021, Reuters The implosion of New York-based Archegos Capital Management and the resulting losses for global banks is likely to intensify regulatory efforts to curtail the ballooning shadow banking sector and...

Experts Say Muni Market Was Hit Unevenly by COVID-19 But Came Out OK

By Chip Barnett March 31, 2021, The Bond Buyer Municipal bond industry leaders speaking Wednesday at The Bond Buyer’s National Outlook Conference said the coronavirus pandemic left the municipal bond market in generally decent shape after causing disruption in...