The Office of the Comptroller of the Currency (OCC) and the International Monetary Fund (IMF) are calling for some brakes to be put upon the mad rush to cryptocurrencies and digital assets because of the threats they might pose to the global financial infrastructure and the operational woes they could present. Michael Hsu, the acting… Read More >>
CFTC Cracks Down on Swaps Data Noncompliance
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 >>
SEC Bars Two People from Whistleblower Program
I should not have been surprised to learn that the SEC can bar people from becoming whistleblowers. In an unusual press release, the regulator, which in these cases, cannot name names, has “barred two individuals from the SEC’s whistleblower award program, each of whom filed hundreds of frivolous award applications.” It appears that the regulator’s… Read More >>
No Showstoppers for T+1 Overhaul: ISITC Panel
While no one would mistake the T+1 shorter settlement drama for a joyous Broadway musical, there are not likely to be any showstoppers as the securities industry transitions to a one-day settlement cycle after execution for U.S. equities. But there’s a lot of work ahead. So says a panel of experts assembled by ISITC for… Read More >>
State Street Adopts Hybrid Model & Closes NYC Offices
State Street to Exit Midtown Manhattan The Boston-based State Street will be closing its midtown Manhattan offices and embracing a hybrid working model in response to staff members that have been working remotely in the wake of the COVID-19 pandemic, according to a prepared statement from the custodian banking giant. “Like most other companies, we… Read More >>
Robo Adviser Settles Conflicts of Interest Case
San Francisco-based robo adviser SoFi Wealth, LLC stands accused by the Securities and Exchange Commission of “breaches of fiduciary duty” regarding approximately 20,000 exchange-traded-funds (ETF) customers. In the customary formulation, the advisory firm neither admits nor denies the SEC charges. However, it is paying the $300,000 penalty. And it has agreed to be censured and… Read More >>
Canadian Regulator Takes Aim at Crypto-Trading Platform
Canadian financial services regulator, the Toronto-based Ontario Securities Commission (OSC) has officially charged a Seychelles-based firm with running an online digital asset trading platform that is noncompliant with the securities-trading laws of the Canadian province. The allegations could result in millions of dollars in penalties and disgorgements. The OSC is formally charging Aux Cayes Fintech… Read More >>
Lacewell Leaves Behind a Legacy of Activism
Linda A. Lacewell recently announced that she will be stepping down on August 24 from her position as superintendent of the New York State Department of Financial Services (NYSDFS) after two-and-a-half years at the helm. Her departure coincides with the resignation of Gov. Andrew Cuomo who is leaving because of a scandal involving sexual harassment… Read More >>
Regulatory Burdens Don’t End in the Cloud: FINRA
Many securities-trading firms have shifted their IT infrastructures to the cloud, but that does not change their regulatory responsibilities and may lead to new ones, according to the Financial Industry Regulatory Authority (FINRA), a self-regulatory organization (SRO) for broker-dealers. In a new research report, FINRA officials acknowledge that while cloud computing models promise “the potential… Read More >>
