Weekly Roundup | Risk Management, Market Infrastructure & Technology | 6 March 2014
DB Adjusts Legal Structure | Fed Intermediate Holding Company Rules
FT reported (subs. required) and Reuters re-reported (free) that Deutsche Bank (DB) is adjusting its structure to curtail US balance sheet and the associated capital redundancies introduced by the new Fed intermediate US holding company rules. The OTC Space: DB Adjusts Legal Structure | Fed Intermediate Holding Company Rules.
UK Investors, Banks at Odds Over Who to Cover Clearing House Risks
Britain's race to shield taxpayers from a potentially new breed of "too big to fail" financial firms is pitting investors against banks over who pays the bill if one of the clearing houses handling the trillions of dollars of trades made each year in financial markets runs into trouble. Reuters: UK Investors, Banks at Odds Over Who to Cover Clearing House Risks.
Banks Have Done Too Little, for Too Long on Counterparty Data
Regulators recently published the findings of a study of counterparty risk data at the world’s largest banks – it makes for depressing reading, says David Rowe, and is symptomatic of deeper problems plaguing the field of enterprise risk management. Risk: Banks Have Done Too Little, for Too Long on Counterparty Data.
Supervisors Slam Banks Over 'Top 20' Counterparty Results
After five years of work, a group of 19 big banks still get a failing grade from supervisors on their ability to pull together and report counterparty exposures. Is it all a question of cost? Fiona Maxwell reports. Risk: Supervisors Slam Banks Over 'Top 20' Counterparty Results.
Detroit Asks Bankruptcy Court to OK New Deal to End Swaps
Detroit on Monday asked a U.S. Bankruptcy Court judge to approve its third try at ending controversial interest rate swaps, laying out a plan that would cost the city just $85 million. Reuters: Detroit Asks Bankruptcy Court to OK New Deal to End Swaps.
In-Depth Introduction: Leverage Ratio
Banks are under pressure to reduce the gross value of their derivatives portfolios, spurring greater use of bilateral compression exercises – and tougher standards in the US could put banks there under more pressure than their peers. Risk: In-Depth Introduction: Leverage Ratio.
US Fund Managers: Tackling Cybersecurity as Operational Risk
The potential for cyberattacks, says the Securities and Exchange Commission, which has put fund managers on high alert to shore up any deficiencies in their data security technology and procedures. The securities watchdog says it will be reviewing the cybersecurity work of investment management firms — namely mutual funds and hedge funds — and their advisors during its 2014 annual exams. FinOps: US Fund Managers: Tackling Cybersecurity as Operational Risk.
Market Infrastructure & Technology
Swift Signs Major banks to KYC Registry
Interbank messaging network Swift has recruited a group of major banks to help develop its centralised KYC utility for the collection and distribution of standard information required by banks as part of their due diligence processes. Finextra: Swift Signs Major banks to KYC Registry.
BNY Mellon CSD Approved by the Luxembourg Stock Exchange as a Recognized Securities Settlement System
BNY Mellon, a global leader in investment management and investment services, has confirmed that its Brussels-based central securities depository, BNY Mellon CSD SA/NV, has been accepted as a recognised system for settling transactions in securities listed on the two markets operated by the Luxembourg Stock Exchange. Securities Finance Monitor: BNY Mellon CSD Approved by the Luxembourg Stock Exchange as a Recognized Securities Settlement System.