• Hedge-fund reporting requirements should be scaled back, pair of US regulators say
    15 February 2019
    Fewer hedge funds should have to report portfolio information as part of systemic risk monitoring, a pair of Republican members of the US Securities and Exchange Commission and the US Commodity Futures Trading Commission said.

    The CFTC’s Brian Quintenz and the SEC’s Hester Peirce this week called for the $1.5 billion asset filing threshold established after the financial crisis to be raised.

    “I don’t see a situation where a $1.5 billion fund is going to bring down the financial system,” Quintenz said at an event* in Washington.

    The cutoff should be “multiple times higher than what we’ve agreed to,” he said.

    CFTC staff is reviewing potential changes to the thresholds for commodity pool operators, including some hedge funds, a spokesperson said.

    To request the full article please click here >

  • CFTC to get 7.6 percent funding boost, first in four years, under spending bill
    14 February 2019
    The US Commodity Futures Trading Commission would get a 7.6 percent funding increase, its first in four years, under a bipartisan bill passed by the Senate today and expected to be signed by President Donald Trump.

    The boost to $268 million includes an earmark of $50 million for information technology to help the CFTC keep pace with an increasingly automated market in derivatives and futures transactions.

    CFTC Chairman Christopher Giancarlo had sought a 12.6 percent increase to $281.5 million.

    To request the full article please click here >

  • Big Tech's entry into finance could change competitive landscape, FSB says
    14 February 2019
    Any push by big tech companies such as Amazon.com and Google into finance could squeeze banks’ profits and force them to take on more risks, the Financial Stability Board has said.

    The entry of Big Tech would increase the impact of financial technology, or fintech, by bringing brand recognition and scale to a sector that’s largely now the preserve of niche startups, the Basel-based global watchdog said in a report on fintech published today.

    “The competitive impact of Big Tech may be greater than that of fintech firms,” the report said, because technology giants “typically have large, established customer networks and enjoy name recognition and trust.”

    The FSB pointed to China as an example of how big technology companies could take over whole areas of finance. Two companies, Alipay and Tencent, account for 94 percent of the Chinese mobile-payments market.

    To request the full article please click here >

  • US, EU mid-sized bank relief could threaten financial stability, German central banker says
    13 February 2019
    Joachim Wuermeling, a German central bank director, warned that US and EU efforts to relax capital requirements for medium-sized banks could imperil global financial stability.

    “I am concerned about tendencies in both the EU and the US to exclude from key regulations internationally active mid-sized banks,” he said in a recent speech.* “The last crisis erupted not only due to what large banks did, but also because of the activities at midsized banks".

    Wuermeling, one of six members of the Deutsche Bank executive board, said smaller banks that aren’t internationally active should be subject to simpler rules than those called for by Basel III.

    To request the full article please click here >

  • FSB chief Quarles hints at possible scale-back of global reforms
    12 February 2019
    Randal Quarles, the new head of the Financial Stability Board, signaled that he might try to dial back international post-crisis standards, a strategy he has taken with bank capital requirements at the US Federal Reserve.

    Quarles’s inaugural speech at the global standard-setter said the FSB should introduce efficiency considerations to its evaluation of systemic-risk reforms.

    “Can we achieve a strong level of financial resilience with reforms that are more efficient, simple, transparent and tailored?” he asked Sunday during a Hong Kong speech.* “If so, we owe it to everyone affected by the policies recommended by the FSB to try, because there is a strong public interest in the efficiency of the financial sector, just as there is in its safety and soundness".

    To request the full article please click here >