Regulation
SEC squares off with broker-dealers over data analytics usage
The Gensler administration has ruffled feathers in the broker-dealer community with a new proposal seeking to limit broker dealers’ use of predictive data analytics. But at the heart of this deal is something far more seismic: one of the first attempts by the SEC to regulate AI.
The Cusip lawsuit: A love story
With possibly three years before the semblance of a verdict is reached in the ongoing class action lawsuit against Cusip Global Services and its affiliates, Reb wonders what exactly is so captivating about the ordeal.
Vendors under new scrutiny in CFTC due diligence push
The planned cyber resilience regime will force dealers to subject “critical” tech vendors to stricter audits.
Industry divided on whether Europe should delay FRTB
Most bankers prefer to keep to earlier start date, even though it puts continent out of sync with US.
Banks call for direct oversight of cloud providers by US regulators
Tri-opoly of cloud vendors “poses systemic risk” to financial sector, say risk managers
Can FIX fix patchy exchange outage communications?
A FIX working group is hoping to standardize the way that venues communicate with the sell side when markets fail.
Third-party guidance spurs US bank rethink on fintech partners
For conventional vendors, banks say due diligence rules will be the toughest challenge
Social distancing: Putting a $ value on the ‘S’ in ESG
The ‘social’ pillar of ESG has been much overlooked and underserved in terms of reporting and accurate and available data. That’s changing.
Shall we compare thee to a multilateral trading venue?
As regulators confirm that perimeter guidance applies to tech firms, the focus shifts to enforcement.
BoE model risk rule may drive real-time monitoring of AI
New rule requires banks to rerun performance tests on models that recalibrate dynamically.
TMX, CanDeal strike deal for Canadian benchmark transition
Canada is one of many countries moving away from opinion-based benchmarks like Libor in favor of alternatives based on observable trade data. TMX and CanDeal are working to deliver a new rate which will take over as Canada’s official loan benchmark next…
Waters Wrap: Big Tech’s subtle plans for capital markets domination
Amazon, Google, IBM and Microsoft aren't just cloud providers anymore—and their tentacles are going to spread deep into trading systems going forward.
Antitrust complaint against Cusip can go forward, SDNY judge rules
The federal judge presiding over the ongoing class-action suit against Cusip Global Services, S&P Global, FactSet, and the American Bankers Association, has dismissed all complaints against the defendants except one alleging the quartet violated Section…
Clients versus compliance: banks hung up over WhatsApp fines
Most opt for outright ban, but some seek technological solutions to monitor private messaging.
Banks’ internal watchdogs bark back at ChatGPT
Generative AI has plenty of uses in finance, but banks must first overcome compliance headaches
The push for compliance tech to be flexible, not ‘a burden’
Firms need to actively drive trade surveillance compliance above and beyond regulatory requirements, says Joe Schifano.
Is the equities tape slipping through Europe’s fingers?
The EU has finally reached a compromise on a consolidated tape. But Theo wonders if it is too little, too late.
Nasdaq–Adenza: A look at the tech
The exchange operator announced its intention to acquire the software firm, which combines AxiomSL and Calypso, in a deal that amounts to its largest acquisition to date.
Waters Wrap: The path to generative AI is paved with solid data practices
While large language models are likely to proliferate, those that can develop a solid data infrastructure of taxonomies, ontologies, data sourcing, mapping and lineage will be the ultimate winners, Anthony says.
Shortening the Settlement Cycle: Then and Now in Asia
DTCC’s Joseph Capablanca says that while T+1 will bring benefits to Asia investors, industry participants need to improve ‘behavioral processes’.
FRTB forces banks to rethink entire data management infrastructure
Data mapping and getting historical time series data are among the challenges banks face in conducting calculations necessary for FRTB. But they have help.
Google urges regulators, market participants to clarify risk guidance for AI models
A new whitepaper from Google finds that existing guidance on the use of AI and ML models for risk management is a start, but leaves room for improvement.
SFDR: A data project that’s becoming ‘a real headache’
SFDR mandates that asset managers must start publishing ESG data in a few weeks, but sourcing the new metrics has proved challenging, and a host of questions remain.
Dora ‘critical tech vendor’ designation could cast a wide net
Experts think cloud services, data providers and software firms are all in regulators’ sights.