FINRA finds broker-dealers gravitating towards cloud computing to improve efficiency

Broker-dealers have taken a variety of approaches in terms of their use of cloud computing as they seek to improve their efficiency and flexibility, said the Financial Industry Regulatory Authority (FINRA) in a report. 

Mellissa Duru

Nasdaq-listed firms to meet board diversity targets

Firms listed on the US’s second largest stock exchange, the tech-heavy Nasdaq, will be subject to binding gender and diversity targets, which could potentially see a shake-up in the boards of some companies. 

Jamaica flag

Jamaica begins 'retail' CBDC pilot

While most of the big jurisdictions are still toying with the idea of central bank digital currencies, the Bank of Jamaica is ploughing ahead having delivered its first batch of CBDCs to deposit takers and payment services providers in a pilot exercise.

Andre Craig

Will Canada remain unique in its FRTB data pooling approach?

Banks pooling their data to gain lower capital requirements for exposures in their trading books seems like a no brainer, but so far only Canada is doing it on an industry-wide basis. By Justin Pugsley 

FDIC to exempt some information from bank resolution plans

Some insured depository institutions (IDIs) are being exempted from certain content requirements for resolution planning, the Federal Deposit Insurance Corporation (FDIC) said in a statement on June 25.

CFTC clarifies the use of internal models for calculating initial margin

Certain swap dealers using internal models to calculate minimum capital requirements do not need to register them with the Commodity Futures Trading Commission’s (CFTC), the agency said in an advisory note.

US banks show their mettle during stress tests

The 23 largest banks in the US passed the latest stress tests with flying colours and could stomach nearly $500bn in losses without breaching regulatory capital levels suggesting they have weathered the Covid-19 pandemic well.

Fed’s growing reliance on money market funds could prove destabilising

The way the US Federal Reserve funds itself has been undergoing a quiet revolution since the 2007-9 global financial crisis (GFC) according to the Bank Policy Institute, with it becoming increasingly reliant on money market funds, with potentially negative consequences for financial stability.

Two Fed officials question need for US dollar CBDC

The US may not need a central bank digital currency (CBDC) according to two officials from the US Federal Reserve as many dollar transactions are already electronic. 

Contagion risks growing in US Treasuries market due to fragmentation of clearing

There is a growing contagion risk due to the fragmentation of the US Treasuries market, argues the the Depository Trust & Clearing Corporation (DTCC), a market infrastructure firm, in a white paper published on May 25 called ‘More Clearing, Less Risk: Increasing Centrally Cleared Activity in the US Treasury Cash Market’.