Integral Development Corp has received approval from the UK’s Financial Conduct Authority (FCA) to operate a multilateral trading facility.
The firm says the MTF, the technology for which is based upon its Open Currency Exchange (OCX) platform, includes all the features and services necessary for clients to conduct MiFID II compliant trading.
It adds the MTF will provide enhanced surveillance practices, monitoring procedures, and execution analysis for transparent and compliant trading of FX forwards, swaps, and NDFs.
Integral says it will deliver its entire platform with services necessary to meet MiFID II requirements including assistance with pre-trade and post-trade transparency, surveillance, TCA, reporting, and record keeping.
The European Securities and Markets Authority (ESMA) has announced a delay gto the implementation of a key element of the impending MiFID II regulation, which is due to go into effect on January 3, 2018.
The Authority says the delay is, “To support the smooth implementation of Legal Entity Identifiers (LEI) requirements under the Markets in Financial Instruments Regulation (MiFIR).”
MiFIR obliges EU investment firms to identify their clients that are legal persons with LEIs for the purpose of MiFID II transaction reporting.
The Commodity Futures Trading Commission (CFTC) has released a proposed interpretation concerning its authority over retail commodity transactions involving virtual currency, such as bitcoin.
Specifically, the proposed interpretation sets out the CFTC’s view regarding the “actual delivery” exception that may apply to virtual currency transactions. It establishes two primary factors necessary to demonstrate “actual delivery” of retail commodity transactions in virtual currency:
The proposed interpretation establishes two primary factors necessary to demonstrate “actual delivery” of retail commodity transactions in virtual currency.
The US Commodity Futures Trading Commission (CFTC) has added 21 new names to the Registration Deficient List (RED List).
The RED List, launched in September 2015, identifies unregistered foreign entities that the CFTC has reason to believe are soliciting and accepting funds from US residents at a retail level for, among other things, trading in binary options or foreign currency (forex) and are required to register with the CFTC, but are not registered.
Registration with the CFTC is no guarantee against fraud or mismanagement by an otherwise unscrupulous firm; however, registration does bring a higher level of security and accountability to the public.
The US National Futures Association (NFA) has submitted a letter to the Commodity Futures Trading Commission updating its proposed rules for the disclosure of FX trading costs to customers.
NFA says it the proposed rule is aimed at providing retail FX customers with greater transparency regarding the costs associated with their transactions. In adopting the amendment, NFA says it recognises that its current forex dealer members (FDM) operate using one of two business models, and that the costs associated with a transaction may differ depending on the business model used.
Thomson Reuters has expanded its Connected Risk platform to include a Model Risk Management (MRM) solution, allowing institutions to demonstrate a real-time understanding of their model risk landscape, with the ability to report on the model’s governance status, sign-offs and related issues from a single platform source.
The firm says that financial modelling plays a critical role in several financial institution activities, including credit underwriting, risk management, capital adequacy and instrument valuation.
It adds that its MRM solution is designed to provide risk professionals with a holistic understanding of how each of these models in the business is derived, validated and applied.
In a speech delivered today to the FICC Markets Standards Board (FMSB) in London, Mark Carney, Governor of the Bank of England (BoE), expressed optimism that new measures aimed at preventing misconduct in the FICC markets are having a significant impact.
These measures, set out two-and-a-half years ago in the Fair and Effective Markets Review (FEMR), are designed to improve confidence in FICC markets after a series of scandals.
“Multiple factors contributed to a tide of ethical drift in FICC markets. Market standards were poorly understood, often ignored and always lacked teeth. Too many participants neither felt responsible for the system nor recognised the full impact of their actions. Bad behaviour went unchecked, proliferated and eventually became the norm,” noted Carney in his speech.
The Monetary Authority of Singapore has issued a consultation paper as part of its plans to formalise expectations for holders of a capital markets services licence, banks, merchant banks and finance companies to have in place policies and procedures to place to ensure best execution and to support fair outcomes for customers.
The consultation is in tandem with MAS’ earlier proposal for a market operator to have in place measures to facilitate its members’ execution of customers’ orders in the customers’ interests, and to ensure that its handling and execution of bids and offers is conducted on a fair and objective basis.
A new survey by trading technology provider Integral Development Corp finds that FX market participants face a race against the clock to be fully prepared for MiFID II.
In a global poll of 282 market participants last week the firm found that only 18% claimed their FX business was completely set for January 3, while one third saud they were only half ready how the requirements, which include demonstrating best execution to clients and increased reporting, will affect currency trading.
Thomson Reuters has enhanced its reference-data capabilities, available on its integrated data and analytics delivery platform, DataScope.
The firms says the platform will deliver key regulatory content and will link crucial information, such as reference data, corporate actions, entity data, end-of-day data and intraday data in an insightful and actionable way for customers to meet MiFID II requirements. In order to be compliant with MiFID II requirements investment professionals will be required to have suitable risk models that safeguard against risk exposure.