In other FinTech news, Nordea Bank Russia turns to Wolters Kluwer, the CFTC extends relief for SEFs and FINRA wants to hear from its members.
Deutsche Bank officials have opened an innovation lab in New York City that they say is their fourth globally, and will be focused on several IT areas including artificial intelligence (AI), cloud technology and cybersecurity.
The lab is located in Lower Manhattan’s Fulton Center and will enable the bank to “access a leading innovation ecosystem in one of the world’s largest financial hubs,” officials say.
“We want to make Deutsche Bank the first stop for startups,” says Elly Hardwick, head of innovation at Deutsche Bank, in a prepared statement. “Through our global network of innovation labs, we are combining fresh ideas from fintechs with the scale and infrastructure of a global bank,” Hardwick says.
Beyond NYC, there are Deutsche Bank Labs in Silicon Valley, Berlin and London, officials say. They have “three principal goals: to help the bank evaluate and adopt emerging technologies, to develop a culture of innovation and contribute to the bank’s digital strategy,” according to the bank. “Staff working in the labs evaluate technology solutions from the four innovation ecosystems and apply the best of these to address business challenges and opportunities within the bank.”
Nordea Bank Russia to Deploy OneSumX from Wolters Kluwer
Nordea Bank Russia (NBR) will be implementing vendor Wolters Kluwer’s OneSumX Risk and Management Information Systems (MIS) as part of the bank’s business analytics offering, officials say. The bank picked Wolters Kluwer’s product after a competitive tender process.
“Nordea adheres to high standards in risk management. That is why, we need solutions meeting our tough criteria,” says Alexander Dugin, NBR deputy chief risk officer, in a prepared statement.
The bank’s offering is based on Wolters Kluwer’s integrated data architecture for risk management across an organization, vendor officials say. The solution supports balance sheet modeling, risk measurement and management. NBR will also use the OneSumX MIS Reporting solution for key asset and liability management (ALM) and market risk measures, officials add.
CFTC Extends Swap Trade Confirmation Relief for SEFs
The CFTC’s division of market oversight (DMO) has issued a no-action letter that extends swap trade confirmation requirements relief to swap execution facilities (SEFs). The initial relief was covered via CFTC Staff Letter 16-25, which expires March 31, 2017, officials say.
The new letter extends the relief until the effective date of any revised CFTC regulations regarding trade confirmation requirements, according to the CFTC. The relief is subject to terms and conditions in the letter.
“The letter relieves swap execution facilities (SEFs) from the requirement in CFTC Regulation 37.6 that a SEF obtain documents that are incorporated by reference in a trade confirmation issued by a SEF, prior to issuing the confirmation,” according to the CFTC. “SEFs are also relieved from the requirement in CFTC Regulations 37.1000, 37.1001 and 45.2(a) that a SEF maintain such documents as records.”
SEFs are also relieved from the requirement in CFTC Regulation 45.3(a) that makes SEFs report confirmation data that is only contained in the documents that the SEF incorporates by reference in a confirmation.
In addition, DMO officials will not recommend enforcement action if:
- In a confirmation provided via CFTC Regulation 37.6(b), a SEF incorporates by reference, terms from previously negotiated agreements between the counterparties, without first having obtained copies of such agreements;
- A SEF fails to maintain a copy of the agreements incorporated by reference in the SEF’s confirmation, as required under CFTC Regulations 37.1000, 37.1001 and 45.2(a);
- Or a SEF does not report confirmation data contained in the documents that a SEF incorporates by reference in a confirmation, as required under CFTC Regulation 45.3(a).
“This relief requires that a SEF continue to report all swap data that the SEF is reporting as of the time this no-action relief is issued, as required by part 45 of the CFTC’s regulations, even if such data are contained in the documents that the SEF incorporates by reference in a confirmation,” officials add.
FINRA Seeks Comment on Its Engagement Programs
The Financial Industry Regulatory Authority (FINRA), a self-regulating organization (SRO), is seeking comment on how to “enhance its programs for engagement with its members and other stakeholders” with particular focus on FINRA’s advisory and ad hoc committees, rulemaking process, member relations programs, and the information it provides regarding its programs and operations, officials say.
“FINRA invests significant resources in its current engagement programs, and we are exploring how these programs can be made more effective without compromising our regulatory responsibilities. Requesting comment is an important part of that evaluation,” says Robert W. Cook, FINRA president and CEO, in a statement. The Notice summarizes FINRA’s extensive engagement programs and requests comment on potential enhancements to those programs by May 5, 2017.
FINRA officials say the notice is part of the FINRA360 initiative to conduct “a comprehensive review of its operations and programs.” The initiative follow an ongoing listening tour that Cook has conducted since he assumed his role in August 2016, officials add.
FINRA regulates brokerage firms doing business in the United States and is supervised by the SEC.
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