FSB requests papers on addressing shadow bank systemic risks

Parties interested in non bank financial institutions (NBFIs) are being asked by the Financial Stability Board (FSB) to submit papers on how to address the systemic risks they pose. 

Hong Kong regulators consult on increasing clearing rules calculation periods

Hong Kong’s regulators are consulting over adding eight new calculation periods under clearing rules for their over-the-counter derivatives regulatory regime. 

HKMA to work on green and sustainable finance modules for bankers

Work is set to begin on developing a new module on green and sustainable finance under the enhanced competency framework for banking practitioners, the Hong Kong Monetary Authority (HKMA) said on December 16, 2021. 

Clearer rules could boost stablecoin issuers

Clearer regulation could boost stablecoin adoption and market opportunities as uncertainty has deterred many potential users from getting involved, said Fitch Ratings in a note published on December 21, 2021. 

Fed tells banks to up game on their risk management after Archegos review

Following a review of the Archegos Capital Management failure, banks are expected to carry out proper client due diligence and to fully account for the risks such relationships could entail, the Federal Reserve Board said on December 10, 2021.

Fed’s Brainard becomes chair of FSB vulnerabilities committee

Lael Brainard, the nominee vice chair of the US Federal Reserve Board, has been appointed as chair of the Financial Stability Board’s (FSB) Standing Committee on Assessment of Vulnerabilities (SCAV).

RTGS needs to adapt to growth in fast payment systems

The rapid rollout of fast payment systems (FPS) holds implications for real-time gross settlement (RTGS) systems, such as the modification of access criteria, according to a report from a committee hosted by the Bank for International Settlements.

CFTC clamps down on DeFi as it orders platform to cease options trading

The cessation order slapped on decentralised platform, Polymarket, by the Commodity Futures Trading Commission (CFTC) shows that US regulators are steadily clamping down on decentralised finance and are likely to follow up with more enforcement actions this year. 

IOSCO finds investment funds are not currently endangering financial stability

Open-ended funds are not meaningfully leveraged while hedge funds are increasing their borrowings, said the International Organization of Securities Commissions (IOSCO) on January 4, 2022, in its expanded annual Investment Funds Statistics Report.

Banks fear ECB could ask them to shift more capital and staff into EU

A probe by the European Central Bank (ECB) into how global banks conduct their business in the EU could escalate tensions between the bloc and the UK over relocating capital and senior staff.