SFTR is aimed at bringing greater transparency to the securities financing and repo markets. By mandating Security Financing Transactions (SFTs) reporting to a central repository in a standardized way, regulators are attempting to gain new insights into potential systemic risks and to look for indicators to avoid future crises.
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Preparing for the LIBOR Transition
Over the next two years, the transition to a post-LIBOR world will be a fast-paced and challenging journey. LIBOR rates are deeply entrenched in the global financial services industry and serve as a basis for pricing hundreds of trillions of dollars of assets. Although large financial institutions have become adept since the post-crisis era at addressing complex regulatory changes, the migration to alternative risk-free rates (RFR) presents a particular set of new challenges.
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Streamlining Regulatory Compliance Through Process Automation
Financial institutions continue to face multiple hurdles in the seemingly endless quest for efficient and effective regulatory compliance. While taking the full load of compliance completely out of human hands is unlikely, automation can provide some significant relief.
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U.S. QFC Resolution Stay Regulation: Solving “Too Big to Fail”
U.S. regulators issued the U.S. QFC Resolution Stay Regulations as part of a broader set of regulations devised to tackle the “too big to fail” problem arising from the 2008 financial crisis. This article takes a closer look at QFCs, the origins of the U.S. Resolution Stay Regulation, and the remediation options available to firms as regulators ramp up efforts to prevent taxpayer-funded bailouts of GSIBs.
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Large Banks Prioritize Machine Learning as New Operating Models Emerge and Regulatory Scrutiny Mounts
Machine learning (ML) has increasingly been delivering value for large financial institutions as they invest in the technology to attract new customers and streamline operations. Recent advances in the technology underpinning artificial intelligence (AI) have enabled financial institutions to explore the application of ML techniques in their client facing operations.
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Consolidated Audit Trail: A Reaction to the 2010 “Flash Crash"
The Securities and Exchange Commission (SEC) ordered the creation of the Consolidated Audit Trail (CAT) in 2012 after regulators realized that they did not have enough market data to explain the Flash Crash that occurred in May 2010. CAT addresses the audit trail of all transactions, providing information and checks and balances for market activity. In fact, CAT greatly expands on the requirements of the Order Audit Trail System (OATS) regulation, which was adopted in 1998.
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