Risk Management

What will be the Gating Factor in Sec Finance, the LCR or the Leverage Ratio?

This conversation keeps coming back around and we’re not yet satisfied with the conclusions that we are hearing. Most recently, Fed Governor Jeremy Stein brought it up again. The tricky issue is that, in the category of unintended consequences, the Leverage Ratio (and the Supplemental Leverage Ratio) may do more to stifle securities lending and repo than anyone initially intended. But its not supposed to work like that. Securities Finance Monitor: What will be the Gating Factor in Sec Finance, the LCR or the Leverage Ratio?

Please Bank Responsibly: Three Areas Where the Buy-side Are Being Forced to Take More Responsibility in 2014

2013 has been a real wake-up call for the buy-side. New requirements from regulations like EMIR, AIFMD and Dodd-Frank have meant that funds, asset managers and even corporates are suddenly in regulators’ sights, some for the first time. RegTechFS: Please Bank Responsibly: Three Areas Where the Buy-side are Being Forced to Take More Responsibility in 2014

Market Infrastructure

Banks Consider Trader Chat Rooms Ban

Banks including JPMorgan Chase are considering banning traders from electronic chat rooms in the wake of the international foreign exchange investigation, according to people familiar with the matter. FT: Banks Consider Trader Chat Rooms Ban.

Banks Face Clampdown on Client e-Trading

Banks are being put under pressure by UK regulators to impose more scrutiny over their clients’ electronic trading activity as they seek to clamp down on market abuse. FT: Banks Face Clampdown on Client e-Trading.

Market Divide Deepens on Clearing House Recovery

Buyside firms have labelled the use of their assets to support troubled clearing houses as “unfair and unpredictable”, deepening the divide among market participants on the issue of so-called “living wills”. Financial News: Market Divide Deepens on Clearing House Recovery.