"European Union negotiators reached a preliminary agreement on Wednesday on new rules to stop the rigging of market benchmarks, after attempted manipulation of the Libor and Euribor interest rates indexes by banks."
"A change to the way the Depository Trust & Clearing Corporation (DTCC) funds its fixed-income clearing service could push US Treasury repurchase agreement rates up to 20 basis points, warn market participants."
"One aspect of the proposal that has already proven controversial would require trading firms to keep records of the source code for their algorithms, which amounts to the "secret sauce" that the firms use to compete with rivals, and make them available to the regulator upon request."
"US bond dealers and investors have been urging policymakers to address dislocations within fixed income markets in private meetings this month. Focus has centred on the primary market for short-term funding, where cash is often borrowed from investors by banks in exchange for high-quality collateral such as Treasury bonds, known as a repurchase, or “repo”, agreement."
"Moody’s identifies three key factors it will look at to determine a credit impact associated with a cyber event"
"“This proposal provides some common-sense risk controls that I believe embrace the benefits that automated trading has brought to our markets, while also protecting against the increased possibility of breakdowns and disruptions that come with it,” CFTC Chair Timothy Massad said before the CFTC vote. “We encourage – and welcome – public comment, which will carefully be taken into account before we take any final action.”"
"Cyber-security is still a relatively new vocation within IT and has often been regarded as one of the ‘dark arts’. This characterisation is entirely unfair, but it has meant less people are interested in becoming cyber-security professionals. The shortage of cyber risk experts is particularly damaging to banks and financial institutions. Online fraud incidents alone officially cost the banking industry almost £60 million in 2014, but, the total figure is much larger as many institutions tend to report only a fraction of cyber crimes. Fraud losses are instead written off as operating costs."
"According to IBM, there are two key advantages to putting the supercomputing resources of IBM Watson to work on analyzing holiday shopping patterns. One is that IBM Watson is able to crunch a lot more data than if you’re not using a supercomputer – tens of millions of online conversations and 10,000 sources and counting. Think of IBM Watson as a voracious online reader, able to scan social networks and media publications in real-time for any sign of a change in consumer sentiment. It’s then able to assign a “Trend Score” on a scale of 0-100 to give you a sense of how confident this trend is real (and not just a fad)."
"Blockchains are overhyped. There, I said it. From Sibos to Money20/20 to cover stories of The Economist and Euromoney, everyone seems to be climbing aboard the blockchain wagon. And no doubt like others in the space, we’re seeing a rapidly increasing number of companies building proofs of concept on our platform and/or asking for our help."
"In turning to Regulation Automated Trading (“Regulation AT”), I acknowledge that my staff and I had dozens of issues and concerns that we brought to the attention of the Division of Market Oversight. While they were responsive to a few small topics, many other issues require much further attention and consideration that I will summarize in this statement."
"The intersection of finance and technology is a place alive with innovation. Over 2015, the focus on this area has sharpened with politicians and business leaders alike championing the fintech revolution set to transform the financial services industry and bring it into the digital age. But what’s driving this revolution? I see four interlocking themes that are inspiring the changes we see in our industry and which will only continue to grow in importance and influence during 2016."
"This consultative document provides principles-based guidance for FMIs to enhance their cyber resilience, cognisant of the dynamic nature of cyber threats and the importance of interconnected entities for the resilience of individual FMIs. This guidance also recognises some of the unique challenges that cyber risk presents to FMIs' traditional operational risk management frameworks, such as the need for a fast and safe resumption of core services following a cyber attack. In doing so, it does not aim at introducing new standards but rather at elaborating on the principles which are already established in the Principles for financial market infrastructures (PFMI)."
"The tone at SEFCON VI gave the sense that very little has changed since this time last year – many of the same issues are unresolved and business is shrinking. But three areas – regulatory environment, business environment, and access and market structure – stood out."
"As the use of ILS capacity has grown within the overall insurance and reinsurance market, the industry has voiced concerns about how investors will react after a significant loss event, but industry leaders actually predict more ILS capital to enter than exit post-event."
"If you’re like me, you’ve read the news on negative swap spreads and tried to sift through the reasons behind it. On the surface, it seems such a basic premise that swap spreads need to be positive – surely there is an arbitrage out there. So I set out to understand it better by seeing how I would arb this apparent misbalance, in much the same way that I had attempted to understand the CME/LCH basis by trying to arb that market."
"A study conducted by the United Nation’s (UN) highlights the significant cost that weather-related disasters cause across the globe, and with the expectation of more frequent and more severe events in the future, an urgent need to improve disaster resilience and mitigation is again brought to light."
"Why does the lack of liquidity in bond markets have many of the world's top economic opinion-makers worried? Ben Wright writing in the Telegraph reports on the voices in "the chorus of doom" and explains why the evaporation of this liquidity in the global fixed income market signals "a warning shot across the bow"."
"The two said their convictions should be tossed because the government failed to prove their Libor submissions were false or fraudulent. They also said there’s no evidence they had any communications with counterparties to the Libor transactions or that those counterparties were “duped” by the rate submissions."