Compliance & Risk Management

Latest Headlines

Latest Headlines

DTCC's FICC aims to submit draft proposal for tri-party repo utility by year-end

The Depository Trust and Clearing Corporation's Fixed Income Clearing Corporation subsidiary plans to submit a draft proposal for a utility to provide central clearing in the $1.6 trillion tri-party repo market by the end of the year. The utility will leverage FICC's GCF Repo platform, which is used for central clearing of repo transactions between dealers.

Is the SEC engaging in insider trading 2.0?

Two separate academic studies suggest that some paying subscribers may be getting Securities and Exchange Commission filing information ahead of the general public, the Wall Street Journal reported....

Bank of England investigates glitch that caused 10-hour crash of key payments systems

Bank of England Governor Mark Carney promised a "thorough, independent review" this week after a 10-hour failure of a payment system whose daily payments processing volumes total 277 billion British pounds.  

MSCI says 'Expected Shortfall' risk calculations can be backtested

Since the financial crisis, the Basel Committee on Banking Supervision has encouraged the financial industry to replace the Value-at-Risk (VaR) method of calculating risk, an industry standard, with Expected Shortfall, a method the committee believes will better capture potential extreme losses during market crisis periods. MSCI now says the chief problem preventing Expected Shortfall, the fact that backtesting it was too difficult, is now solved.

ICE outlines plans for shoring up Libor against abuse

The new administrator of the London Interbank Offered Rate, or Libor, has unveiled its proposed plans for basing calculation of the Libor rate on actual transactions, instead of estimates, to make it less susceptible to manipulation.

Deutsche Bank says clampdown on 'disruptive' behavior is prompting departures

As firms face ongoing investigations into the involvement of their traders in the FX and Libor rate rigging scandals, Deutsche Bank has implemented a new personnel policy that puts more weight on compliance with firm policies, procedures and values when calculating employee bonuses. Some employees who don't like it, have already begun leaving, the firm says.  

Banks agree to pause swaps terminations when one party defaults

Eighteen banks have agreed to temporarily withhold from terminating swaps contracts when a counterparty defaults and is in danger of failing. The rule is intended to give regulators time to reorganize a troubled bank and prevent a repeat of derivatives terminations like the ones that may have hastened Lehman Brothers' demise.

Banks reportedly near deal on how to handle swaps when one party fails

Banks are reportedly very near to an international deal to temporarily waive their rights to terminate derivatives contracts when one party defaults. The deal is considered an important part of a crisis plan to avoid repeats of crises like the Lehman bankruptcy.  

Senators angry at CFTC over weak commodities manipulation settlement

Last month, natural gas trader Brian Hunter agreed to pay a $750,000 fine to settle Commodity Futures Trading Commission allegations that he manipulated commodity markets. Three senators are now complaining that the settlement is an embarrassment, considering the severity of Hunter's manipulation.

NYSE to switch its market surveillance from Finra to NYSE Regulation subsidiary

The NYSE Group will not renew some aspects of its market surveillance, investigation and enforcement contract with the Financial Industry Regulatory Authority when the contract expires Dec. 31 and instead will hand over market surveillance duties to its own NYSE Regulation subsidiary.