CFTC, SEC to co-regulate single-name CDS | Analysis: Loosening of post-crisis reforms ignores success of capital regulations | Angelides: Lessons of Bear Stearns' collapse already forgotten
March 20, 2018
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CFTC, SEC to co-regulate single-name CDS
The Commodity Futures Trading Commission and the Securities and Exchange Commission have agreed on dual supervision of single-name credit default swaps, which will let single-name CDS clearing be done under CFTC rules. According to sources, "while the SEC is formulating its rules, the CFTC could extend its supervision of CDS indexes and the clearinghouses it governs to include single-name CDS."
Risk (subscription required) (3/16) 
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Analysis: Loosening of post-crisis reforms ignores success of capital regulations
US policymakers are preparing to step back from reforms that followed the 2007 financial crisis. Critics say a softening of capital regulations found in Basel III and Dodd-Frank is a bad idea.
Money & Banking (3/19) 
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Angelides: Lessons of Bear Stearns' collapse already forgotten
The 10th anniversary of the fall of Bear Stearns comes as the banking lobby pushes for a loosening of regulations that came in response to the 2007 financial crisis, according to Phil Angelides, the chairman of the Financial Crisis Inquiry Commission. "The only missing ingredient for another crisis is Wall Street excess -- as sure to come as the sun is to rise," Angelides writes.
Los Angeles Times (tiered subscription model) (3/19) 
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Bloomberg Insights
BoE sets higher capital requirement for stress test
BoE sets higher capital requirement for stress test
Bank of England (Daniel Leal-Olivas/AFP/Getty Images)
The Bank of England is setting a higher bar for capital at major banks for this year's stress test. The higher standard is based on "additional costs [systemic banks'] failure would impose on the wider economy," the central bank says.
Bloomberg Professional Services (3/19),  Central Banking Publications (subscription required) (3/16) 
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EU data-protection rule to affect US firms
US firms might be unaware of the effect of the EU General Data Protection Regulation, says Andra Purkalitis of Bovill. The regulation, which expands individuals' control of their data, has implications outside the EU and takes effect May 25.
Bloomberg Professional Services (3/19) 
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Compliance leaving sell-side little time for client interactions
Compliance demands are eating up the time of sell-side traders, prompting them to neglect customer service. A survey by Greenwich Associates finds that many traders are interacting with compliance teams on a daily basis.
Bloomberg Professional Services (3/19) 
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Trading Trends
Marex uses blockchain to issue structured note
Marex Solutions has created a structured note linked to the FTSE 100 index that is registered, cleared and settled using distributed-ledger technology. Marex is partnering with Nivaura, a startup specializing in blockchain technology, and ResonanceX, an investing platform founded by a former managing director of JPMorgan Chase.
CoinDesk (UK) (3/18),  Bloomberg (free registration) (3/19) 
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Goldman: Equity returns threatened by volatility
Equity gains could be sapped by volatility, warn Goldman Sachs strategists. "This moderation in risk-adjusted returns has begun to play out quickly, in particular due to the low-vol regime fading and equity/bond return correlations becoming positive," said a note by Goldman.
Bloomberg (free registration) (3/19) 
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Operational Efficiencies
After a challenging 2017, some senior traders head for the exits
Senior trading talent is leaving major banks. High-ranking executives at Deutsche Bank and Credit Suisse have left their posts.
eFinancialCareers (3/19) 
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Commodity trading has few female execs
The $2 trillion commodity-trading industry has 4.2% female representation in senior leadership, with none at Glencore, Vitol Group and Trafigura Group, according to statistics from the 40 largest commodity-trading firms. Commodity trading can be intimidating because "the set of survival skills needed is similar to that of a lion tamer going into the lion's cage," former commodity strategist Roxana Mohammadian-Molina says.
Bloomberg (free registration) (3/18) 
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Barclays preps for ring fence by shuffling execs
Barclays is rearranging senior personnel as it prepares to make retail and small-business banking an autonomous division, in anticipation of UK ring-fencing requirements.
Financial Times (tiered subscription model) (3/19) 
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Regulatory Review
EU, US open to talks on clearinghouse rules
EU and US regulators have informally said they want to discuss EU legislation regarding how foreign derivatives clearinghouses are overseen after Brexit.
MLex (subscription required) (3/14) 
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SEC wants exchanges to stop stalling on CAT
SEC wants exchanges to stop stalling on CAT
Clayton (Chip Somodevilla/Getty Images)
Securities and Exchange Commission Chairman Jay Clayton urges exchanges not to "dilly around" on compliance with the consolidated audit trail, though he has not indicated enforcement action will occur. "The main markets regulator should have access to a forensic trail that enables us to assess what happened if a market event occurred," he says.
The Wall Street Journal (tiered subscription model) (3/19) 
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Whistleblower award in BofA case is SEC's biggest
The Securities and Exchange Commission has agreed to pay more than $83 million to three Merrill Lynch insiders who gave information that helped the SEC reach a $415 million settlement with Bank of America in 2016, their lawyer says. The whistleblower payout is the largest ever by the SEC.
Bloomberg (free registration) (3/19) 
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UK to establish fintech strategy, task force
UK to establish fintech strategy, task force
Hammond (Daniel Leal-Olivas/AFP/Getty Images)
UK Chancellor Philip Hammond is expected to unveil a financial-technology strategy Thursday. The plan includes a task force involving the Bank of England, the Financial Conduct Authority and the Treasury.
City A.M. (London) (3/19),  The Sunday Times (London) (tiered subscription model) (3/18) 
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Research & Analysis
Research: BOE's historic influence on US markets, pre-Depression
New research finds that the Bank of England had less influence on US shocks of the early 20th century than previously thought.
Bank Underground (Bank of England) (3/15) 
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