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Regulating domestic SIFIs
Articles
11 Oct
2012

Regulating domestic SIFIs

After a broad consultation paper released June, the BCBS has released its framework for addressing domestic systemically important banks or “D-SIBs.” This is on schedule for delivery and discussion at the upcoming G20 meeting, and should seen as related to and coordinated with the pre-existing G-SIFI framework. The framework is quite loose, giving considerable discretion..

09 Oct
2012

The cost of not monitoring your customer

  • 9th October 2012
  • RegTechFS

When the G20 first revealed its plans in April 2009, the scale and scope of new reforms was all encompassing. Now, we are seeing how serious the regulatory community is about them. The battle to know your customer provides a first glimpse of just how seriously the industry will take the new reforms. At the..

01 Oct
2012

Interim identifiers face EU brick wall

  • 1st October 2012
  • RegTechFS

After Level 1 of EMIR got the industry thinking they would be allowed to use the LEI or another ‘interim’ identifier, they hit somewhat of a brick wall. ESMA’s long awaited final draft technical standards for EMIR have dealt a serious blow to ‘interim solutions’ already being used, stating that any interim solutions need to be in..

01 Oct
2012

Risk data aggregation: it’s all in the interpretation

In their latest landscape assessment of Basel III, the EBA came to a conclusion regarding a problem the industry has been grappling with for a long time: rules that aren’t detailed enough lead to uneven outcomes in data reporting, aggregation and assessment. The report finds that, while data quality from national regulators has improved and..

13 Sep
2012

Getting the right roadmap?

  • 13th September 2012
  • RegTechFS

The industry is at a turning point for laying the foundations for global reporting success through the new legal entity identifier (LEI).  The G20 has asked for the identifier to be launched by March 2013 – a mere 100 business days from now. The LEI will set fundamental precedents for future reporting standards, before even..

10 Sep
2012

HFT: On the brink of definitive new controls?

  • 10th September 2012
  • RegTechFS

Thanks to technological hiccup after technological hiccup, High Frequency Trading (HFT) remains a permanent fixture in the financial press. With each blip, regulators and politicians promise to regulate HFT, but how they are going to put effective controls in place is still an open question. Despite the noise, the issues with HFT remain the same...

10 Sep
2012

Microprudential risk

Despite increasingly stringent regulations on microprudential risk data, firms have yet to pull the trigger on serious commitment and aggressive investment. The critical piece – standards – is still missing, as both firms and regulators see this conversation as too difficult. From mortgages to counterparty risk and now to sovereign risk — banks and regulators..

10 Sep
2012

Systemically Important Financial Institutions

SIFI assessment criteria are becoming increasingly stratified and are coming to financial institutions near you. Higher capital surcharges, ring fencing, ‘unplugging’ and new living will reports are all parts of a solution to combat ‘too big to fail.’ Some economists contend that the banks that are too-big-to-fail enjoy a lower cost of capital because they..

10 Sep
2012

Record keeping: The EU raises the global bar

  • 10th September 2012
  • RegTechFS

Most of what the MEPs voted into law in July required ESMA to define exactly what they meant in their record keeping demands legislated through EMIR. Unfortunately, a few clauses slipped through the net in the drafting process… One of these was regarding record keeping which, according to experts, means that, as of 16 August,..