Cyber attacks

Financial firms have borne the brunt of cyber attacks during Covid-19 pandemic

The financial sector has been more often targeted by hackers during the Covid-19 pandemic meaning there is a significant risk of a severe disruption or systemic event, the Bank for International Settlements (BIS) warned in a bulletin. 

Christian Kopf

Bank of England resurrects market maker of last resort concept

Suggestions by a Bank of England official that central banks could become market makers of last resort due to structural market changes have triggered mixed reactions with some embracing the idea, while others see potential moral hazard and yet another group thinks it is essentially a regulatory problem.

Teo Floor

March 2020 volatility sparks debate over clearing house initial margin models

ISDA is pushing financial regulators to scrutinise margin models at clearing houses after Covid-induced market volatility last spring sent initial margins through the roof, while CCPs sound a note of caution. 

Basel Committee consults on technical tweaks to SFT haircut floors

The Basel Committee on Banking Supervision is proposing to tweak rules on haircut floors for securities financing transactions (SFTs) to address an interpretive issue relating to collateral upgrade transactions and correct a misstatement of the calculation formula applied to netting sets.

Major milestone achieved on road to Libor exit

The week of January 25 marked a major milestone for interest rate benchmark reforms the International Swaps and Derivatives Association (ISDA) said, with more than 12,000 entities and rising across nearly 80 jurisdictions having adhered to its protocol. 

Chris Childs

Jurisdictions have chance to avoid fragmented data standards for OTC derivatives

Now is the time to review the implementation of various critical data elements for OTC derivatives markets before they are adopted into the regulatory frameworks of various jurisdictions so as to avoid fragmented standards. By Chris Childs, managing director, head of repository and derivatives services and chief executive officer and president at DTCC Deriv/SERV LLC

ORX driving collaboration among financial firms to fight cyber risk

The Operational Riskdata Exchange Association (ORX) is attempting to foster greater understanding and collaboration among financial firms to safeguard against the growing array of cyber threats.

IOSCO supports setting up board to promote sustainability in capital markets

Establishing a Sustainability Standards Board (SSB) has won the support of the International Organization of Securities Commissions (IOSCO) to help promote consistency and comparability across capital markets and to reduce the risk of fragmentation around sustainability disclosures.

Seismic changes

Financial firms will have to adapt to seismic changes this year

The year 2020 generated seismic shifts in the structure of markets, ways of working, the landscape of risks and paths of recovery. Harnessing these requires firms to prioritise a purposeful recovery, resilience and restructuring in the year ahead. By Adam Markson, head of UK and Ireland risk practice at Accenture.

Rick Watson

FSB warns of climate change threat to financial stability

Policy-makers and their advisers have at last recognised the implications of climate change on financial stability, marking a sea change in political sentiment on this issue. By Victor Smart