With brokerages expected to connect systems with the consolidated audit trail before a deadline three months away, SIFMA has reiterated concern about the security of customer data, which could be prey for cyberthieves. SIFMA welcomes the CAT but urges clarity on who is liable in the event of data loss in a cyberattack. For more, listen to a recent SIFMA podcast.
Traders conduct roughly one-third of trading of investment-grade corporate bonds electronically, rather than by phone, leading to growth in volume during the past year, according to Greenwich Associates. "Automation and the data it creates is helping some investment ideas turn into trades that otherwise never would have seen the light of day," Managing Director Kevin McPartland says.
The European Securities and Markets Authority has proposed creation of a consolidated tape that would provide market participants real-time data on trading of equity instruments. Opinions differ what form the consolidated tape should take, who should run it and what it should track.
A report by CB Insights and MasterCard predicts fintechs and banks will further align their interests in 2020, as banks look to transform how they provide products and services, and digital challengers work to expand their offerings. The report also describes the US as behind the times in fintech regulation, with Europe leading the way in smart regulation.
More than a third of Bank of America's customers deposit checks digitally, which is a key indicator of how technology has changed banking, says CEO Brian Moynihan.
The bank's number of digital customers has risen over the last decade from about 5 million to 29 million, Moynihan said.
Nasdaq has boosted surveillance capabilities by letting traders build data-rich profiles that help the exchange group identify market manipulation. "The data is there to create really deep and rich profiles of how a trader trades," says Michael O'Brien, vice president of product management for global risk and surveillance.
A cyberattack on a significantly active bank in the US "would likely be amplified to affect the liquidity of many other banks in the system," according to a report by the Federal Reserve Bank of New York. "This could have severe implications on the stability of the broader financial system vis-a-vis spillovers to investors, creditors, and other financial market participants," the report states.
A bill that would require prudential banking regulators to appear annually before the House Financial Services Committee has cleared the House. The House has also passed a bill that would mandate annual cybersecurity updates from the Federal Reserve, the Federal Deposit Insurance Corp., the Office of the Comptroller of the Currency and the National Credit Union Administration.
Financial firms must comply with a privacy law in California that gives people the right to access and delete personal data companies have collected. The law, which took effect Jan. 1, applies to any firm that has clients in the state. SIFMA has provided comments to the California attorney general on the policy.
SIFMA's 47th annual Operations Conference & Exhibition will gather operations, technology and regulatory leaders from across the securities industry for three days of discussions, addressing the industry's most critical priorities. Connect with over 900 of your peers, representing the entire ecosystem of financial operations that powers performance in the capital markets. Topics will include Operational Resiliency, Consolidated Audit Trail, Reg BI, Data Management, AI, Cybersecurity and more. Register now at the early bird rate.
Capital markets fund 65% of economic activity in the United States; their depth, liquidity and efficiency are key to the success of our country and the innovation that drives it. SIFMA's members represent the broker-dealers, investment banks and asset managers that match capital to ideas, driving growth and investment opportunity. From market activity to public policy and industry-wide initiatives, our 2020 Outlook explores what matters to the US capital markets.