The CFTC is cracking down on the alleged failures of supervisory systems and other controls that swap dealers and other swap industry participants have set up to be compliant. In particular, the regulator has just announced enforcement actions against Société Générale S.A., Mizuho Capital Markets, and the Refinitiv SEF, among others. “Swap dealer registrants must… Read More >>
Northern Trust Uses Algorithms to Find Initial Margin
Northern Trust Develops Offering with Acadia With help from vendor Acadia, Northern Trust launched an automated solution for initial margin (IM) calculation that exploits algorithms to find assets that will help firms meet regulatory obligations, officials say. The solution was developed to help clients meet the September 1 deadline for compliance with the Uncleared Margin… Read More >>
CME-IHS Joint Venture Targets OTC Ops Woes
Following an announcement this past January, CME Group and IHS Markit have formally launched a joint venture, dubbed OSTTRA, that will encompass offerings intended to ease the post-trade operational challenges of over-the-counter (OTC) transaction processing for interest rate, foreign exchange (FX), equity, and credit asset classes. CME Group and IHS Markit each own half of… Read More >>
EC Blesses IHS Markit-CME Joint Venture
Proposed J.V. Seen as Complementary CME Group, an operator of derivatives trading venues, and IHS Markit, an information and analytics vendor, have gotten the blessings of the European Commission for their joint venture of post-trade services. “The European Commission has approved, under the EU Merger Regulation, the acquisition of joint control over a newly created… Read More >>
DTCC Repository Fined for Alleged Data Breaches
The London-based DTCC Derivatives Repository Plc (DDRL), a suite of post-trade, record-keeping, and reporting services, has been fined by E.U. regulator European Securities and Markets Authority for seven alleged infringements of the European Market Infrastructure Regulation legislation governing data confidentiality, data integrity, and direct and immediate data access. The total fine is €408,000, or approximately… Read More >>
Credit Suisse & CFTC Settle Swap Data Reporting Case
The Commodity Futures Trading Commission has ordered Credit Suisse International, Credit Suisse Securities Europe Limited, and Credit Suisse Capital LLC — three Credit Suisse entities that are provisionally registered swap dealers — to pay $1.5 million for “failing to comply with swap data reporting obligations.” In addition to the financial penalty, the three Credit Suisse… Read More >>
CFTC Mulls SOFR Start Date for Interdealer Brokers
MRAC Subcommittee Urges July 26 Start Date A key CFTC subcommittee is recommending that interdealer brokers replace the trading of U.S. Dollar linear interest rate swaps (IRS) based upon the London Inter-Bank Offered Rate (LIBOR) with the trading of IRS based upon the Secured Overnight Financing Rate (SOFR) starting July 26, 2021, and to continue… Read More >>
The 2021 FTF Awards Winners Unveiled!
Financial Technologies Forum (FTF) is pleased to announce that operational excellence and major achievements in financial technology innovation surged in 2020 as evidenced by the winners of the 2021 FTF News Technology Innovation Awards competition. The winners of the FTF Awards competition, now in its tenth year, are being announced today, June 7, and they… Read More >>
T+1 Gets a Nod from SEC Chair Gensler
Gary Gensler, the new chair of the SEC, is provisionally endorsing the industry effort to shorten trade settlement time from T+2 to T+1 as evidenced by his recent testimony before the U.S. House Committee on Financial Services, overseen by Chairwoman Maxine Waters (D-CA). “I believe shortening the standard settlement cycle could reduce costs and risks… Read More >>
Many Firms Lack LIBOR Transition Plans: Survey
Some financial services firms are taking their sweet time to transition away from the scandal-ridden London Inter-bank Offered Rate (LIBOR) benchmark to the relatively new Secured Overnight Finance Rate (SOFR), according to a new report from consultancy Duff & Phelps. Duff & Phelps last month released the results of a survey that finds nearly half… Read More >>
