Have we sufficiently protected our proprietary source codes? That is the question chief compliance officers, general counsel, and technology directors at Wall Street powerhouses should know how to answer if they want to avoid the fate of Headlands Technologies LLC (HT) , a global quantitative trading firm in the midst of civil and criminal litigation involving […]
Twenty-Four Hour Trading: Corporate Actions Snafu?
With 24-hour trading on US exchanges closer to becoming a reality, back-office operations managers at some US broker-dealers are starting to worry about possible glitches processing corporate actions. Twenty-four-hour trading doesn’t mean 24 hours literally. It only means that there will be longer after-hours trading with a short trading halt of about an hour. The […]
Drug Cartels As Foreign Terrorists: AML Spotlight
US President Donald Trump’s decision in January to classify drug cartels as foreign terrorist organizations and specially designated global terrorists has put anti-money laundering compliance executives at US financial institutions doing business in Latin America on high alert when it comes to their AML programs. Based on the US Department of State including eight drug […]
SEC: Clear Path For Crypto Asset Custody?
The US Securities and Exchange Commission’s decision last year to fine Galois Capital for violating its custody rule as well as potential changes to that regulation under the new crypto-friendly Trump administration are fueling speculation about whether one of the critical stumbling blocks to the institutionalization of the crypto asset market– the safekeeping of crypto […]
Business of Human Rights in New EU Reg
Oversight of third-party vendors will soon take on a new human rights twist for many local and foreign financial firms doing business in the European Union thanks to the new Corporate Sustainability Due Diligence Directive. The European legislation, otherwise called CS3D, forces firms to impose a moral code of conduct on their direct and indirect […]
SEC Exams 2025: T+1 Post-Mortem?
T+1 settlement isn’t over for the US Securities and Exchange Commission. Chief compliance officers at US fund management firms and broker-dealers must be prepared to show how they are meeting the challenge of a one-day settlement cycle, otherwise known as T+1 settlement, if requested by an examiner from the SEC next year. The onus appears […]
Time for US-Based Fund Managers to Join DORA Bandwagon
Europe’s pending Digital Operational Resilience Act (DORA) should prompt fund managers in the US to review their third-party service relationships even if the legislation’s cross-border impact is ill-defined, warn legal and other experts. Effective on January 17, 2025, DORA is Europe’s way of including more than just banks and insurance firms in multiple current regulations […]
BNY Pershing’s US$1.4 Million FINRA Fine: Data Governance Flaw?
How could BNY Pershing have unintentionally stored and distributed the wrong interest rates on domestic and international variable rate securities to clients for years? Easily if the firm didn’t have the right checks and balances to ensure data quality, based on the Financial Industry Regulatory Authority’s account of why it fined the giant clearing firm […]
Private Fund Managers: Hello AML Compliance Officers
Chief compliance officers (CCOs) at private fund management firms could be saddled with the extra title of anti-money laundering compliance officer and a lot more work if a proposed AML rule from the FinCEN unit of the US Treasury takes effect. FinCEN, short for Financial Crimes Enforcement Network, has resurrected its longstanding desire for many […]
NY’s New Cyber Law Shines Stronger Light on C-Level
C-level executives at most financial firms operating in New York will have one more reason besides the fear of a data breach to change their corporate governance for cybersecurity this year– New York State’s amended regulation. Electronic securities lending and borrowing platform EquiLend’s recent announcement it was the target of a ransomware attack followed New […]