Bond yields have been falling since 1982. Many sovereign bonds have ultra-low yields today. Ultra-low yields generate ultra-high liability values since the time value of money does not apply when there is too much debt in the system. Pension schemes that were comfortably funded a few years ago at 5% now have huge deficits.
With all eyes on the impending introduction of the complex web of joy that is MIFID II, another less discussed regulation is fast approaching and this article seeks to highlight just what that regulation is, who it impacts and how.
The FCA have today issued their response to the ESAs 24 November FFX announcement. It is brief and is worth reading in full as a masterclass in ironic prevarication and understatement.
https://thefieldeffect.co.uk/white-papers/sftr-navigating-challenge/This is the second in a series of whitepapers where The Field Effect reviews the impacts of the Securities Finance Transaction Regulation (SFTR). This second 24 page white-paper covers in detail the Regulatory overview and business impacts, Changing your operating model and Next steps.
Publication of the latest package of capital requirements – often dubbed Basel IV – has been a long time coming.
Press release about Governors and Heads of Supervision finalising Basel III reforms (7 December 2017)
The original source of the updated Basle capital proposals, link below. Bill.
The transatlantic trading platform cousins have officially been recognised as twins, on 5 November the European Commission announced its long-promised equivalence decision in respect of U.S. swap execution facilities.
Cassini’s award winning software enhances front office trade decisions with visibility and analytics of post trade costs, and also provides post trade optimization and estimation tools for treasury and operations.
Whilst everyone talks quickly about the future impact of MiFID II, there is a more immediate impact for UK-based firms given the FCA focus on remediation, following their thematic review of asset managers. The FCA has made it increasingly clear in a series of industry engagements, from the thematic review in 2014, to the Press Release in March this year, that firms are not taking sufficient action to ensure their clients receive best execution.There is a particular focus on the OTC Fixed Income, Currency and Commodity markets. MiFID itself then adds to the complexity and the devil, as always, is in the detail.
In case you missed it - the SFTR Breakfast Briefing is coming up on Wednesday morning with The Field Effect, Equilend and Trax.
On 24 November the European Supervisory Authorities (ESAs) released their long (in context) waited forbearance announcement with respect to the margining or not of forward foreign exchange.
An update from the ESAs on their intention to amend the European rules for margin on FX
In our complex, interlinked world with increasing political uncertainty, prediction models are required to answer the question “What happens next” and to allow for the definition of suitable strategies.
With 6 months until GDPR becomes enforceable, time is running short to make the appropriate preparations to be fully compliant with the regulation.
In this interview we hear from Michael Bergfort, employed by a global bank, his views on the past and future of compliance. We also hear Michael's three professional wishes about the market, and how technology could help compliance.
Read about the impacts of SFTR (trade reporting for the fixed income market), and the resources needed to comply.
Free tickets to the biggest FinTech exhibition this year, plus free and discounted conference tickets to OTC Space Readers.
On 4 May 2017, the European Commission published its legislative proposal for the long-awaited review of Regulation (EU) No 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC derivatives, central counterparties and trade repositories (‘EMIR’).