On 25 September 2014, the “Fair and effective markets review” in the UK published its “Recommendations on additional financial benchmarks to be brought into UK regulatory scope” (dated August 2014), along with the consultation document. This interim deliverable focuses on fixed-income, currency and commodity (FICC), UK-based benchmarks i.e. where administrators and contributors are physically located […]

The FCA have stated their intention to make “substantial and important” changes to the controversial attestation process. Attestation is an informal tool, with unclear legal backing. While the Agency has no formal powers to force attestation, a refusal to comply is almost certain to trigger more intrusive investigation. Director of Supervision Clive Adamson’s letter to […]

The FCA published on 31 July 2014 a Thematic Review on best execution and payment for order flow (PFOF). PFOF arrangements compromise compliance with best execution requirement, a key concept of MiFID. The FCA found that some of the firms maintained PFOF arrangements with market makers, in contravention with the Finalised Guidance published in 2012. […]

On 30 July 2014, the FCA and PRA published a joint consultation paper on the new regulatory framework for individuals, along with one on new remuneration rules. New regulatory framework for individuals By pointing the finger pre-emptively at a select group of individuals (the “Senior Managers”), the regulators hope that the senior managers will behave […]

The Interest Rate Hedging Products (IRHPs) Review is almost completed, but it might be too early to finally draw a line on the interest rate mis-selling story. Since its official start in May 2013, nine banks reviewed altogether close to 30,000 sales of IRHPs.  A significant amount of resources were devoted by the banks to […]

Prompted by yesterday’s authorisation of LCH. Clearnet Ltd. and perhaps by the “no exemptions” comment by a CFTC official, the FCA has suggested a convoluted workaround for EU CCPs who are caught in the US client asset catch 22. Article 39 EMIR, as clarified by Question CCP 8i ESMA Q&A, stipulates that a European CCP […]

Although George Osborne’s annual Mansion House speech was dominated by plans to tackle the UK’s chronic housing shortage, the Chancellor made some familiar noises concerning the importance of the ‘integrity of the City,’ and ‘robust financial markets,’ and set out proposals to protect both. Osborne announced that the Treasury, the Bank of England and the […]

An interesting snippet in today’s Risk magazine provides a further clue to the rapidly-evolving culture at the CFTC. Ananda Radhakrishnan, the Agency’s Director of the Division of Clearing and Risk, told a conference in London yesterday, “The first response cannot be: ‘CFTC, you have to provide an exemption.’ I say: why? I’m tired of providing […]

A brief reminder that the FCA’s deadline for compliance with EMIR risk-mitigation regulations expires on 30th April 2014. Firms must be in a position to demonstrate compliance after this date or face a possible fine and public disclosure of the penalty. The regulator updated its EMIR website page in February stating that it expects firms […]