The new capital requirements recently finalized by the Federal Reserve could force big banks to withdraw from non-core businesses and impact liquidity, trends that could have unpredictable knock-on effects for buy-side firms and operations teams, industry analysts say. The Fed released its revised capital rules on July 20, under which big banks are required to… Read More >>
Goldman Pays $1.8M to FINRA for Reporting Errors
Goldman Sachs’ clearing arm was recently forced to pay $1.8 million by the Financial Industry Regulatory Authority (FINRA) for trade reporting errors that spanned several years, a move industry observers say signals a renewed focus on this area on the part of regulators. Goldman Sachs Execution and Clearing L.P. agreed to pay in response to… Read More >>
Firms Shrug Off NYSE Trading Halt
Market participants weren’t phased by the widely publicized trading halt last week via the New York Stock Exchange (NYSE), according to a recent survey showing that positive perceptions of the soundness of market infrastructure is the highest it’s been since the Flash Crash. The survey, “What Glitch? Market Structure Confidence Highest Since Before Flash Crash,”… Read More >>
Industry Solves Half of the Tri-Party Repo Risk Problem
Bank of New York Mellon recently completed its leg of an industry initiative to reduce risk in the tri-party repo markets, following the disastrous role those markets played in causing the 2008 financial crisis. After successfully implementing a series of reforms laid out by the Federal Reserve-led Task Force for U.S. Tri-Party Repo Infrastructure Reform,… Read More >>
CFTC’s ‘Flash Crash Trader’ Case Hits Home
The CFTC’s recent enforcement action against a U.K. futures trader charged with spoofing trades and contributing to the 2010 Flash Crash raises as many questions as it answers, but could nonetheless prove a solid first step toward preventing this type of behavior in the future, industry observers say. On April 21, British authorities, acting at… Read More >>
