The US Federal Reserve's inaugural Supervision and Regulation Report found that more than 40% of large US banks failed to "meet supervisory expectations in certain risk-management areas." The report also showed the banking sector's profitability was at a 10-year high.
Banks are going digital to fend off the market entry of fintech firms eager to gain a foothold in consumer banking. DBS is finding that digital customers are more than twice as profitable than those who do branch-based banking.
SIX Swiss Exchange says its existing trading platform "could be completely replaced" by a planned blockchain-based digital exchange in about 10 years. SIX Digital Exchange is expected to launch in the middle of 2019.
The Securities and Exchange Commission has voted to implement amendments to Rule 606, which will require broker-dealers to increase transparency in handling customer orders by providing information on routing decisions, order-execution statistics, fees paid and rebates from trading venues. The amendments are in accordance with suggestions offered by SIFMA and the Investment Company Institute.
Commodity Futures Trading Commission Chairman J. Christopher Giancarlo is pushing the agency toward digitalization "to keep pace with the pace of markets." The CFTC needs "to take an 80-year-old statute and a 40-year-old agency and reform it for this new digital marketplace we are in, and it begins with understanding these changes," Giancarlo says.
Hackers could shut down US infrastructure if cyberattacks are not detected in time, leaving policymakers wondering how best to prevent such potentially devastating attacks. Some cyberexperts say tough government regulations and monitoring will be the best deterrent, while others say that industries that understand vulnerabilities are better equipped to address cybersecurity.
International Monetary Fund Managing Director Christine Lagarde has told a financial-technology conference that central banks should consider issuing digital currency. Lagarde acknowledged risk and that "the case for digital currency is not universal" but said "technology will change, and so must we."
Join us at SIFMA's Anti-Money Laundering and Financial Crimes Conference, Feb. 4-5, 2019 at the Grand Hyatt in New York City. Celebrating its 19th year, this is the only conference in the AML and financial crime space tailored to broker-dealers and other members of the security industry. Early bird rates are available!
Alibaba. General Motors. SoftBank. Initial public offerings (IPOs) are an important way for businesses to grow, innovate and better serve their customers. Yet the number of public companies has declined 46% since its peak in 1996. Deal value and the number of deals has fallen as well, particularly for small-cap IPOs. In the latest primer from SIFMA Insights, we look at why that might be through an exploration of the IPO process and listings exchanges.