Since the publication of the U.K.’s Wheatley Review in late September, which heralded the beginning of the reform process to fix the scandal-plagued LIBOR benchmark, a swath of regulatory initiatives has been launched. Read more
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Rhodri is a director of capital markets policy for CFA Institute, where he focuses on issues related to primary and secondary market structures. He was named one of the “40 Under 40 Rising Stars of Trading and Technology” by Financial News.
In the wake of a string of technological mishaps affecting the financial markets, the SEC recently proposed Regulation SCI to strengthen the controls, policies, and procedures surrounding market technology. Rhodri Preece, CFA, examines the proposal, which would require exchanges, significant alternative trading systems, clearing agencies, and plan processors to meet certain core technology standards. Read more
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This week, Royal Bank of Scotland became the third bank to settle with authorities over its involvement in the rate-manipulation affair, paying a combined total of £390 million (approximately $610 million) to the U.S. Commodity Futures Trading Commission, U.S. Department of Justice, and U.K. Financial Services Authority. Read more
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On 22 January, European finance ministers approved a motion to allow 11 EU member states to proceed with proposals to introduce a financial transactions tax (FTT). The plans now go to the European Commission to develop the framework for the taxation, including the financial instruments, rates, and parties to whom it will apply. Read more
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In the midst of the stagnation engulfing western economies following the financial crisis, policy makers on both sides of the Atlantic have turned their attention to small and medium-sized enterprises (SMEs). Read more
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Over the past decade, the trend toward larger volumes of equity-market transactions taking place away from public exchanges has led to concerns about investor access and competition with the traditional exchanges. In response, CFA Institute has published Dark Pools, Internalization, and Equity Market Quality. Read more
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The regulatory response to automated trading is stepping up with various initiatives globally to limit the propensity for errant technology to cause market instability. Such initiatives include tightening up controls over algorithms via more frequent and robust testing, regulatory authorisation and oversight, curbs on unfiltered electronic access to markets (such as by banning “naked” sponsored access), and more sophisticated circuit breakers to halt excessive trading volatility. Read more
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Since Barclays settled with U.K. and U.S. regulators in June over its involvement in the manipulation of LIBOR, investment professionals and other interested stakeholders have waited for the next episode of this scandal to unravel. In the intervening period, it seems that regulators have focused more on the future than the present, with various initiatives underway to fix this broken benchmark. For now, the lurid headlines have given way to more sober pronouncements from policymakers, of which the publication of the U.K.’s Wheatley Review of LIBOR has taken centre stage. Read more
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Part of the outrage over the LIBOR scandal stems from the meager actions taken by regulators in punishing the manipulators of these interest rates, along with the feeling among investors that the regulators were indifferent, even complicit. This begs the question, why has so little been done by regulators to date? Read more
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Two recent studies offer conflicting views of hedge fund industry performance. Rhodri Preece, CFA, examines the research and offers key takeaways for investors. Read more
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