Risk and financial reporting managers at clearing firms and large broker-dealers could soon have to recode their back office systems and establish new procedures. Why? To quickly inform the Financial Industry Regulatory Authority (FINRA) whether they have a liquidity problem and report a lot more information about their financing deals. The self-regulatory agency for broker-dealers […]
OTC ISINs: Few Users Pay Much More
Trading venues, banks, and broker-dealers now know for certain how much more they will have to pay to create International Securities Identification Numbers (ISINs) for over-the-counter derivatives. It turns out that it’s a lot more. In a recent statement, the Derivatives Service Bureau (DSB) said that instead of a €65,000 annual fee, power users will have […]
Love Taxes, Operations: Be a Tax Ops Director
Knowledge of processing 1099 Forms, cost basis-reporting, Internal Revenue Service Section 871(m), financial transaction taxes and corporate actions, FATCA, and issues and errors management. Over ten years of corporate tax compliance experience necessary. Those are just some of the qualifications that large global asset servicing providers — Societe Generale, BNP Paribas and JP Morgan — […]
New Year’s Message: Pay More for OTC ISINs?
Update 12/30/2017: This article has been updated to include more details about the DSB’s €8.8 million figure for overhead. Data, operations and vendor procurement managers whose buy- and sell-side firms need international securities identification codes (ISINs) for over-the-counter derivative contracts could end up with some bad news come January 15. Financial firms might discover they […]
EU’s SRD: Reworking Proxy Services
kamala harris nude Sassy Custodian bank operations managers should start planning to get their hands a lot dirtier in the proxy plumbing process. The new version of the European Shareholder Rights Directive (SRD) calls for them to respond to European issuer requests for identifying investors who hold more than 0.5 percent of a company’s stock, […]
FINRA to Broker-Dealers: Justify Order Routing Perks
Brokerage compliance managers might have to scale back their holiday plans. The US Financial Industry Regulatory Authority (FINRA) is revisiting broker-dealer order routing, and it wants answers by the end of this month. Last month, the self-regulatory agency for broker-dealers sent an undisclosed number of broker-dealers a request for detailed information on how they quantify […]
North Korea Sanctions: Tracking the Unknown Cohorts
US President Donald Trump’s order to block any “significant financial transactions” related to North Korea is presenting US financial firms with a rigorous challenge to their anti-money laundering procedures. Trade finance, trade surveillance and other departments will have to dig far deeper into customer identities, business relationships, and transactions to protect their firms from costly […]
EquiLend, Prime Brokers Sued: Collusion or Fair Game?
Prime brokers harmed beneficial owners of securities by protecting their turf and sabotaging fledgling electronic securities lending platforms that could have helped buy-side firms earn more revenues from their loans. That is the claim of four US pension plans and one trading firm that have sued six mega US prime brokers and securities lending platform EquiLend […]
Can Blockchain Supercharge Syndicated Loans?
Editor’s Update (4/26/2018): Finastra announced on April 24 that its Fusion LenderComm platform was commercially available, as an app on R3s Corda platform. Agent banks in the syndicated loan market can publish lender-specific deal positions on the ledger eliminating the need for lenders to query their agent banks about transaction history by phone, fax or […]
MiFID Challenge: Which OTC Derivatives to Report?
To report or not to report over-the-counter derivatives under MiFID II. That is the question that compliance and regulatory reporting managers will face when it comes to deciding which trades to include in their transaction reports the day after trades are executed. The wrong answer could cost them hefty fines but finding the right answer will […]