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Regulation

Dodd-Frank Repeal Bill: What Does it Mean? Galen Stops takes a look at Republican attempts to repeal the Dodd-Frank Act On Thursday last week, the US House of Representatives approved the Financial Choice Act (Choice Act), which would repeal major elements of the Dodd-Frank Act. But what does this actually mean in practice? Well, if it is enacted, the bill passed by the House will lead to a whole range of changes to Dodd-Frank. For starters, the Choice Act would implement significant changes to Title 1 of Dodd-Frank, entitled “Regulatory Relief for Strongly Capitalised, Well-Managed Banking Organizations”, which would specifically alter the remit of the Financial Stability Oversight Council (FSOC).
Gauging the “Trump Factor” What impact will the election of Donald Trump have on the regulatory landscape for foreign exchange? Galen Stops reports In recent years, regulation has been a key theme for the FX industry, despite the fact that this market has been directly addressed by very little regulation since the financial crisis. But in 2017 there will be one figure that will loom large in any discussion involving the regulation of the financial services industry, with that of course being the US president-elect, Donald Trump.
Margin Deadline Could Lead to Swaps Market Disruption The swaps market could suffer disruption if buy side trading firms aren’t ready for the March 1 deadline for the implementation of new margin requirement rules, speakers at SefCon VII warned. Although buy side firms will not have to post initial margin for uncleared swaps transactions until 2019 or 2020, from March 1, 2017 they will be required to post variation margin when trading these products. The main challenge highlighted by buy side speakers at the SefCon VII conference in New York on January 18 was the administrative burden of having the correct paperwork and documentation agreed with various counterparties.
Integral’s Case Against EBS BrokerTec CTO to Continue The US Ninth Circuit Court of Appeals has overturned some of the decisions made by the US District Court regarding claims that EBS BrokerTec CTO, Viral Tolat, misappropriated trade secrets from his former employer, Integral Development Corp. To succeed in a claim for misappropriation of trade secrets under California law, Integral must show that it possessed a trade secret, that Tolat misappropriated that trade secret and that this misappropriation caused or threatened damage to Integral. In its case against Tolat, Integral claims that there are three sets of information that Tolat misappropriated.
OTC Reform Pre-empts Expected Exchange Invasion Data from the Bank for International Settlements show financial reform has not led to a greater proportion of derivatives trading on exchanges. Colin Lambert finds out why. As the world’s regulators, led by a very aggressive Gary Gensler-led Commodity Futures Trading Commission (CFTC), sought to reform financial markets post-global financial crisis, the outcome seemed at the time to be the inevitable growth of trading on exchanges. “The world is moving to Chicago” was used as an analogy to express this sentiment – that city being closely associated with the exchange model of course.
An Incomplete Picture: Spotting the Spoofer in FX The incarceration of a trader convicted of spoofing has heightened awareness of the practice, but how hard is it to spot and how prevalent is it in FX? Colin Lambert investigates. “You have to be pretty desperate to resort to spoofing markets – especially on exchanges where it’s nigh on impossible to shield your activities,” argues a senior electronic trader in London. “Even in OTC markets it’s not easy to get away with given the MIS capabilities of firms today.”
FX Trader Arrest: Do Not Pass Go, Do Not Collect $8m Two UK-based FX traders have been charged with wire fraud by the US Department of Justice, one of which has been arrested in New York. Galen Stops reports on the case. On July 19, Mark Johnson, the head of global FX cash trading at HSBC, was arrested at New York’s JFK airport in connection with an ongoing investigation by the US Department of Justice (DoJ) into currency rigging. Two days later, the DoJ officially brought charges against Johnson and Stuart Scott, former head of FX cash trading for EMEA at HSBC, for wire fraud.
Ending a Never-Ending Saga: Truth and Reconciliation in FX Should a line be drawn in the sand over alleged misconduct in FX markets? Colin Lambert sees benefits in the idea. The list of FX traders taking their former employers to court for unfair dismissal grows almost by the week, ...
FEMR – Another Brick in the Wall? The UK’s Fair and Effective Markets Review was eagerly awaited and generally well received, but, Colin Lambert asks, has it actually changed anything?If the level of fanfare was directly correlated to the impact of a release, then the ...
At their recent joint meeting in Tokyo, the global FX committees agreed and released new guidance for market participants, as Colin Lambert reports. With conduct so high on the FX industry’s agenda, representatives of the eight global FX committees ...