The Depository Trust & Clearing Corp's lawsuit against the U.S. Commodity Futures Trading Commission will proceed in a pared-down form. A U.S. District Judge threw out three of five counts in the case, in which the DTCC alleges that CFTC policies have put it at a competitive disadvantage in terms of swaps data reporting.
An industry survey currently underway is looking to uncover ways that sell-side order management systems have not been keeping up with the times, and preliminary results indicate there are many. The study, called Epitaphs for the OMS, is being conducted by Tabb Group and is tracking how well the industry stalwarts in the sell side OMS space are adapting to the changes and shifts occurring in the industry.
Despite the hype around mobile computing and big data, the issues of data integration appear to take higher priorities for buy-side firms. Perhaps in part due to regulatory pressure, the trends for 2014 seem to point to asset managers stepping up their emphasis on longstanding issues like integrating disparate data silos, say members of the financial services team at custom software development firm DataArt.
Just as the promise of good customer relationship management is the ability to paint a complete picture of the customer, a similar approach is developing in the area of fraud. It turns out, marrying big data and fraud prevention may involve applying some of the techniques associated with savvy target marketing toward identifying false identifies and other types of scams.
In anticipation of increased regulatory scrutiny of financial benchmarks, Thomson Reuters has created a new subsidiary devoted to benchmark oversight and compliance. With a 160-strong global benchmark portfolio, Thomson Reuters says moving its benchmark oversight activities into the newly created subsidiary will facilitate its ability to work with global regulators in aligning benchmark governance and compliance.
Buy-side equity desks are increasing the pace of their move into program trading, and the embrace of more sophisticated order routing is pushing them to hire more quantitative personnel, according to a just-released Tabb Group report.
Six major banks have agreed to collaborate with SWIFT to develop an industry utility for know-your-customer compliance. As part of the agreement, the banks will also populate the registry with their own KYC data.
Sixty-five percent of banking and capital markets firms plan to increase investment in compliance by 10 to 20 percent or more over the next two years, according to a new Accenture report. But for many firms progress is rocky as compliance teams report falling short of their own expectations.
A planned link between Trading Technologies and Nasdaq OMX eSpeed has gone live, giving TT customers around the world the ability to tap eSpeed's pool of U.S. Treasuries using complex trading strategies.
A recent SAP survey found that 41 percent of financial services organization felt that predictive analytics is more about minimizing risk than exploiting opportunities. The way that statistic is phrased, it may sound like it the financial industry views predictive analytics as a passive tool rather than an active one. But when you consider the risks that the financial industry faces--market risk, credit risk, compliance risk, risk of fraud--minimizing risk in financial services is hardly a passive job.
It is often assumed by the general public that as hedge fund investors make their investments they are looking for certain kinds of returns. Increasingly, that isn't all they are looking for.
Hong Kong's Securities and Futures Commission (SFC) is proposing limiting dark pools to institutional trading only and excluding retail investors. Initial reaction to the proposal appears positive as dark pool operators in Hong Kong say retail investors are not significant participants in those markets.
Traders using Bloomberg terminals will now be able to analyze market sentiment based on Twitter activity. The move puts Bloomberg in step with Thomson Reuters, which added Twitter-based market sentiment analysis to its terminals last month.
Cleartrade Exchange and the China Beijing Equity Exchange (CBEX) have formed a partnership to share information and collaborate on joint projects. The agreement signals both increasing attention to Asian exchanges and the growing Asian reach of Deutsche Borse, whose European Energy Exchange is a majority owner of Cleartrade.
The Options Clearing Corp. is increasing headcount to focus on compliance and risk in the face of regulatory scrutiny. The world's largest clearing organization, which was designated as "systemically important" by the Financial Stability Oversight Council, was criticized by the Securities and Exchange Commission in a letter last September for weaknesses in governance, financial surveillance and risk management.
Barclays PLC is closing its power trading desk, following what some described as a prolonged winnowing down of power trading activities. The exodus of Barclays is another blow to the power trading market that has been shrinking in size in recent years.
An added wrinkle to the challenge of time synchronization for financial firms is cloud computing. As firms consider how extensively they can rely on the cloud for critical business processes, they are beginning to explore whether the cloud environment adversely affects time synchronization. Unfortunately, the answer appears to be yes, it does.