Rhodri Preece is Head of Industry Research for CFA Institute. He is responsible for building and maintaining the global thought leadership function at CFA Institute, including leading the planning, coordination, and creation of research content across CFA Institute research platforms, including the Financial Analysts Journal, the CFA Institute Research Foundation, and the Future of Finance initiative. Rhodri formerly served as head of capital markets policy EMEA at CFA Institute, where he was responsible for leading capital markets policy activities in the Europe, Middle East, and Africa region, including content development and policy engagement.
New report from the European Central Bank adds further weight to the growing body of evidence suggesting high-frequency trading has a broadly benign to positive effect on markets.
The launch of IOSCO’s Risk Outlook report marks the first public foray into systemic risk monitoring by global securities markets supervisors.
The European Commission recently published a legislative proposal that sets out broad measures to improve the governance, transparency, and supervision of benchmarks, and this week there's been news of ICAP's pending settlement with the U.K. and U.S. authorities over the interdealer broker’s involvement in the LIBOR affair.
CFA Institute has published a report on PRIPs that seeks to clarify what information is relevant to investors at the point of sale, particularly in the often-overlooked area of costs.
On the surface, the derivatives deal appears like a win for the EU, but a closer look reveals that this “victory” is perhaps not quite what it seems.
The jury is still out as to the overall effect of this regulation, but a recent report demonstrates that the clamor for more regulation, as well as the industry push-back, is all too often overdone.
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.
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.
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.
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).
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.
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.
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.
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?
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