News/Regulation
FSA releases operational risk feedback
London - The Financial Services Authority (FSA) should continue issuing operational risk guidance rather than rules, according to the majority of respondents to the UK regulator’s July 2002 consultation paper on operational risk.
Merrill to settle its forex trades via Citi
Citigroup has won a coveted deal to settle Merrill Lynch’s forex trades on its behalf on the new Continuous Linked Settlement (CLS) service for FX.
Driving down fixed costs
Outsourcing could be the key to institutions keeping up with the cost of installing technologies able to cope with CLS, Basel II and STP, and could provide a vital comfort zone in future-proofing your IT.
SEC charges Merill Lynch in Enron case
The US Securities and Exchange Commission (SEC) yesterday charged Merrill Lynch and four of its former senior executives with aiding and abetting Enron’s alleged securities fraud – the first time a regulator has charged a bank with aiding the Houston…
ECB highlights dangers of over-concentrated FX market
Market consolidation and a reliance on electronic trading in the foreign exchange markets could lead to an over-concentration of risk and liquidity among too few market participants, the European Central Bank has warned.
EU supervisory committee to be established
The European Commission is establishing a supervisory committee designed to promote convergence among EU nations in the adoption of the Basel Accord revisions and the related EU Capital Adequacy Directive (CAD), according to Jean-Claude Thebault, head of…
Op risk economic capital is 15%, says BIS study
Banks allocate an average of 15% of their economic capital for operational risk, according to a study released today by the Bank for International Settlements (BIS).
QIS3 results delayed until May
The release of the third quantitative impact study results will be delayed until May, when they will be published alongside the Basel Committee on Banking Supervision's third Consultation Paper (CP3), according to Patricia Jackson, special adviser on…
NY Fed’s Rutledge outlines US plans, IRB goals
William Rutledge, executive vice-president of the New York Federal Reserve Bank, outlined the next steps US regulators will take to implement the Basel Accords in the US.
QIS 3 results to be delayed to May
The release of the third Quantitative Impact Study (QIS3) results will be delayed until May.
Enron charged with gas and broadband manipulation
The US Commodity Futures Trading Commission (CFTC) yesterday finally charged bankrupt energy trader Enron and a former company vice-president with manipulating natural gas prices. Also yesterday, federal authorities arrested on fraud charges two Enron…
FASB votes to review stock-based compensation standards
The Financial Accounting Standards Board (FASB) yesterday voted to review its standards on treating the cost of employee stock options as an expense. The move follows the submission of almost 300 industry comments on the issue.
US commercial banks’ trading revenues down 21.5%
Total cash and derivative trading revenues at US commercial banks decreased by $508 million, to $1.86 billion, in the final quarter of 2002, according to research from the Office of the Comptroller of Currency (OCC).
Caruana to replace McDonough as Basel Committee chief
Jaime Caruana, governor of the Bank of Spain, will replace William McDonough, president of the Federal Reserve Bank of New York, as chairman of the Basel Committee on Banking Supervision.
Linkage between op risk measurement and management key, says Lawrence
The key question that operational risk managers must face is how they directly link op risk measurement to the process of op risk management, said Mark Lawrence, chief risk officer at ANZ Bank in Australia, today at the annual Operational Risk conference…
Linkage between op risk measurement and management key, says Lawrence
Operational risk managers must face up to how they directly link op risk measurement to the process of op risk management, said Mark Lawrence, chief risk officer at ANZ Bank in Australia, today at the annual Operational Risk conference in London.
Vol surge expected from Eastern Europe
Political events in countries slated to join the European Union and the euro are set to trigger a wave of foreign exchange volatility in emerging European countries, market participants said.
Japan's banks under pressure as Nikkei hits fresh 20-year lows
Japan’s Nikkei 225 stock index fell to fresh 20-year lows today, sparking further concerns that the capital adequacy ratios of the country’s banks may come under acute pressure in the approach to the March fiscal year-end.
Algo teams up with Agena to solve op risk data history issue
Canadian risk management technology supplier Algorithmics has teamed up with UK software company Agena to help institutions to model operational risk better.
Senators move to establish stronger federal oversight of energy markets
A group of US senators yesterday introduced legislation, called the Energy Market Oversight Act, that seeks to restore the Commodity Futures Trading Commission’s (CFTC) authority over online and bilateral energy trades and give the Federal Energy…
US Treasury department creates new financial institutions policy office
A new office that will focus on legislative and policy matters related to the financial services sector — including commercial banks, investment banks, insurance companies, credit unions and savings and loans — was announced yesterday by the US Treasury.