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November 1, 2012
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News for operations and technology executives in financial services

  Top Story 
  • CFTC working group defines high-frequency trading
    The Commodity Futures Trading Commission's Technical Advisory Committee has hammered out a definition of what constitutes high-frequency trading. It entails four criteria: use of algorithms, low-latency technology, a fast connection to markets and a high volume of activity. Greg Wood, a committee member, said the definition will be applied objectively by regulators. (10/30) LinkedInFacebookTwitterEmail this Story
  Operations Update 
  • Rules for derivatives-trade reporting pose challenges
    Panelists at the Sibos conference in Osaka, Japan, discussed challenges faced by derivatives-market participants as trade-reporting requirements come into effect. Confusion early in the global financial crisis and issues related to Europe's sovereign-debt crisis have reinforced a need for trade repositories. "The main work on trade repositories will need to be done by the largest 20 to 30 derivatives dealers, but reporting will affect all types of market participants, and the differences between the rules across jurisdictions needs to be looked at," said Karel Engelen of ISDA. The Trade News (U.K.) (10/31) LinkedInFacebookTwitterEmail this Story
  • Buy-side firms lag in ability to meet reconciliation rules
    Six in 10 buy-side firms, interdealer brokers and investment banks have not launched real-time reconciliation and are unlikely to be prepared to do so by the end of next year, as required by impending regulations, according to a report by Gresham Computing. "The vast majority are struggling to on-board new financial transactions in a timely and cost-effective way, and many are still using workaround in Excel," Development Director Neil Vernon said. The Trade News (U.K.) (10/29) LinkedInFacebookTwitterEmail this Story
  • Other News
  Technology Update 
  • Tabb commentary: Financial firms must get better at testing software
    The financial sector is getting hit with the kinds of catastrophic technology failures that haven't been seen since the 1980s and it needs to fix the problems before regulators decide to do it, writes Larry Tabb, founder and CEO of the TABB Group. "We can speak of Six Sigma, process improvement, total quality control or whatever buzzword we want to use, but ultimately, it seems like quality in the software development process is getting lip service at many an IT organization," he notes. Wall Street & Technology (10/26) LinkedInFacebookTwitterEmail this Story
  Regulatory and Legislative Update 
  • CFTC should tackle HFT pre-trade, O'Malia says
    Scott O'Malia, a member of the Commodity Futures Trading Commission, says the agency should focus on pre-trade functionality when it tackles concerns related to high-frequency trading. Some countries are discussing the idea of directly inspecting algorithms, but O'Malia argues against such efforts. "If we were to review each and every algorithm, that would put us similar to the FDA, the Food and Drug Administration, right? They have the mission and responsibility to review and look at the impact of all the drugs on the market and medicines, et cetera. So is that the role the commission would do? We don't have the people in that capacity to understand it," he said. (10/31) LinkedInFacebookTwitterEmail this Story
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  SIFMA News 
  • SIFMA's LEI Seminar, Implementing a Global LEI Framework -- Dec. 11 -- NYC
    In partnership with our global affiliate GFMA, SIFMA is pleased to present "Implementing a Global LEI Framework -- Ready. Set. Go." The symposium will address current global policy as well as regulation and business implementation issues facing the financial services industry, as we prepare to stand up the Financial Stability Board's LEI infrastructure and use of CICI legal entity identifiers for regulatory reporting to the CFTC. We will also examine the impact of these changes on your business. Prepare your firm by attending this important event. LinkedInFacebookTwitterEmail this Story
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