NY DFS Proposes Regulation to Require Cyber-Security Programs The state of New York via the State Department of Financial Services (DFS) wants to require banks, insurance companies, and financial services institutions to “establish and maintain” a cyber-security program via a new regulation proposed by the DFS and Governor Andrew M. Cuomo. The impetus for the… Read More >>
Clearing Relief Comes for Small Firms in Europe
Although larger financial services firms or so-called “Category 1” players jumped out of the over-the-counter (OTC) derivatives mandatory clearing starting gate on June 21, 2016, smaller users or “Category 3” firms could be getting a reprieve and see their start date delayed from 2017 to 2019. The deadline has been extended by European Securities and… Read More >>
Fitch Ratings Fined $1.8M for Regulatory Breaches
The European Securities and Markets Authority (ESMA) has fined Fitch Ratings €1.38 million ($1.8 million) for a series of negligent breaches of the Credit Rating Agencies (CRA) regulation. Following an investigation of credit rating agencies in 2013, the regulator discovered that from December 1, 2010 to June 7, 2012 certain senior analysts in Fitch sent… Read More >>
U.K. Firms Told to Keep to MiFID II Timetable
In the current period of post-Brexit limbo, questions are being asked over the fate of impending European regulations such as the Markets in Financial Instruments Directive II (MiFID II) which is due to come into force in 2018. While tempting to push it down the agenda — it has been continually delayed — financial institutions… Read More >>
ESMA Explores Blockchain’s Risks and Promise
It was only a matter of time before regulators wanted to lift the lid on blockchain and look deeper into the potential opportunities and challenges in the financial services sphere. The European Securities and Markets Authority (ESMA), an EU financial services watchdog, is throwing down the gauntlet with its recent discussion paper for public consultation… Read More >>
EU Firms Face Tight Deadline for MAR Compliance
The clock is ticking away for the Market Abuse Regulation’s (MAR) July 3 start date but there is still uncertainty about the final edict. The European Securities and Markets Authority (ESMA) has only just released its Q&A guidance and is expected to publish a final report by early Q3 2016, which is cutting it close…. Read More >>
European Regulators Clash Over Payouts for Fund Managers
The European Securities and Markets Authority’s (ESMA) final guidelines on remuneration that are part of the investment vehicle regulations known as the Undertakings for Collective Investments in Transferable Securities, aka UCITs V, was supposed to provide clarity when determining a fund manager’s pay package. However, certain aspects remain unclear, especially when it comes to the… Read More >>
CFTC, EU Finally Agree on a Clearing Deal
After three years of often bitter political squabbling, the European Commission and its U.S. counterpart the commodities regulator CFTC finally reached an agreement on a common approach to equivalent recognition of central clearing counterparties (CCPs). The two sides, which oversee around 90 percent of the $553 trillion derivatives market, have been at loggerheads over mutual… Read More >>
Why Regulators Are to Blame for the MiFID II Delay
While U.S. and European authorities are finally making progress in harmonizing key rules and regulations, it’s becoming painfully clear that the lack of an initial, collaborative response among regulators to the global recession is hitting home for all securities firms. A case in point is the recently announced (and expected) new deadline for the Markets… Read More >>
MiFID II Delay Causes Joy and Frustration
As expected, the European Commission has approved a one-year extension for compliance with the revised Markets in Financial Instruments Directive (MiFID II), and while some firms are relieved others are frustrated by the “hurry up and wait” dynamic. The delay is intended to give more time to industry participants grappling with “the exceptional technical implementation… Read More >>
