Compliance & Risk Management

Latest Headlines

Latest Headlines

Vendor risk management may be built into future contracts

For several years now, financial firms have been under increasing regulatory pressure to monitor and manage the risks posed by their vendors, and even their vendors' vendors. As financial firms hone their vendor and third-party risk management skills, their metrics for measuring the riskiness of their vendors may one day become a standard part of the vendor contracts, much like service level agreements, one vendor says.

LEI takeup slower than expected, TABB/Alacra research shows

DTCC/SWIFT received the top spot in a quality ranking of the 14 organizations that serve as registration authorities for Legal Entity Identifiers (LEI), but the research found troubling signs that industry adoption remains low. 

Lawsky investigates Barclays and Deutsche Bank algorithms in FX scandal

Dozens of traders have been let go as probes into manipulation of the FX benchmarks have unfolded, but a New York financial regulator may be looking beyond the traders and investigating FX algorithms. New York Department of Financial Services superintendent Benjamin Lawsky is reportedly investigating whether Barclays and Deutsche Bank used algorithms to manipulate currency benchmarks.

SWIFT's KYC Registry enters competitive KYC compliance space

SWIFT's long-anticipated KYC Registry Service has launched for correspondent banks worldwide, adding another solution to the competitive know-your-customer compliance space several firms are vying to dominate. SWIFT says its solution went live with more than 20 global and regional banks.

Credit Suisse may pare down prime brokerage

Credit Suisse may shrink its prime brokerage unit serving hedge funds as part of an effort to reduce risk in its investment banking division and adjust to new regulations.  

Widening window of WM/Reuters fix delayed until next year

To prevent a recurrence of the foreign exchange benchmark manipulation scandal that has ensnared many global banks and involved regulators on three continents, the companies that set the WM/Reuters...

Goldman Sachs, HSBC sued for manipulating metal prices as regulators turn to electronic process

A jewelry maker filed suit against Goldman Sachs, HSBC, Standard Bank and a unit of chemical producer BASF last week, accusing the four companies of colluding to manipulate platinum and palladium prices over a period of eight years. The suit came just as regulators are implementing new processes for pricing those and other precious metals.

Unanimous approval of Reg SCI adds rules for technology oversight

Regulation Systems Compliance and Integrity or Reg SCI, the rules devised to better insulate the market against the technical failures, received unanimous approval on Wednesday. The regulation--which mainly applies to exchanges, clearing houses and certain other market infrastructure players--mandates annual reports on efforts to safeguard systems and a policy for immediately notifying the Securities and Exchange Commission when a major technical problem is detected.

Financial firms wrestle with fourth-party risk

In manufacturing, companies are traditionally worried about every component of their supply chain, assessing each component's performance level and susceptibility to failure. As spectacular cyber breaches and technical glitches make headlines, financial firms that have outsourced portions of their infrastructures as cost-saving measures are now looking at their supply chains with that same critical eye.

IOSCO report: Post-trade transparency in CDS market does not affect market risk

The availability of post trade data in the credit default swap (CDS) market does not have a significant effect on market risk exposure, according to a new report from the International Organization of Securities Commissions (IOSCO). The report, based on a review of existing studies, publicly-available post trade data and a survey of market participants, also found that more post trade transparency would help the market.