Predict and prevent– that’s what back-office operations managers at buy and sell-side firms preparing for Europe’s Central Securities Depositories Regulation (CSDR) are starting to think about so they won’t have to pay hefty financial penalties or endure buy-in requirements if they fail to settle their European trades on time. Instead of bemoaning the cost of […]
SEC: Old Transfer Agent Rules Apply to New Blockchain
The US Securities and Exchange Commission’s decision to register blockchain-enabled transfer agents has resurrected the issue of how it can apply securities laws to a nascent unproven technology. San Francisco-based Securitize has laid claim to being the first “agent” registered by the SEC to have developed an open-source blockchain based protocol for shareholder recordkeeping with […]
Cryptoasset Valuation: Fair Value or Fair Game?
Fair value– the term used by accountants to refer to the correct valuation of assets for financial reporting purposes — should’nt be taken at face value by fund managers or investors when comes to cryptoassets. Anyone who comes to the table unprepared for a potential dispute is foolish as shown in a recent lawsuit involving […]
Crypto-Miners: Are They Broker-Dealers or Math Geeks?
If it quacks like a duck, it’s a duck, right. But does it quack? That’s the question broker-dealer Templum Markets has raised to the US Securities and Exchange Commission about crypto-miners which has polarized the crypto-community into deciding whether they should be regulated as broker-dealers. Fueling the debate are conflicting interpretations of the Securities and […]
Europe’s CSDR: Custodians Face Reporting Headaches
The European Central Securities Depositories Regulation (CSDR) is quickly turning into a misnomer for the legislation. Operations and IT managers at custodian banks must quickly develop new data consolidation and message reformatting workflow and technology to deliver the right information on settled and unsettled trades to local regulators in July 2019. Given that the pan- […]
CUSIP ID Codes Enter World of Blockchain
Equities and bonds have identification numbers so why not tokenized asset offerings (TAOs). That’s the premise of a new agreement between blockchain startup Templum Markets and CUSIP Global Services (CGS) whose goal is to promote liquidity and post-trade operational efficiency for TAOs. North America’s national numbering agency will now issue CUSIPs or nine-digit alphanumeric codes […]
BofAML’s Fake Trade Reports: Governance Breakdown?
How could Bank of America Merrill Lynch get away with giving institutional customers phony trade execution, transaction cost analysis and expense reports for five years? Ten brokerage operations and IT managers contacted by FinOps Report can only speculate after reading the scant details in separate settlement reports issued by the Office of the Attorney General […]
Custody: Unchartered Waters for Digital Assets
Qualified custodian. That’s a term that compliance and operations managers at registered investment fund advisors, not to mention the US Securities and Exchange Commission, are now grappling with, when it comes to the safekeeping of digital assets. The reason is two-fold. For starters, it is unclear whether the SEC’s custody rule for RIAs investing in […]
FINRA New Ops Certification: Two Exams Better?
What is the difference between a stock, a bond, a derivative, an exchange-traded fund and other financial products? What are customer suitability rules, margin rules and custody rules? These might sound like simple questions, but for US brokerage operations managers who must abide by changes in test formats imposed by the US Financial Industry Regulatory Authority […]
SEC to Fund Admins: No Proof, No NAV
The US Securities and Exchange Commission has just warned fund administrators they can’t take the word of a fund manager when calculating the net asset value (NAV) of an investment fund. When explaining its recent US$561,000 fine against Gemini Fund Services, the US regulatory agency says that when assigning an NAV to a mutual fund, […]