News/Risk management
CCPs say central bank access needed to avoid liquidity crisis
Uniform access to deposit accounts and overnight liquidity vital, say market participants
CCPs and banks at odds over custodian losses
Market participants do not see eye-to-eye on loss sharing in the event of custody bank failure
ECB tells IMA banks to apply before rules are complete
Dealers criticise “unreasonable” timetable for FRTB model approvals, revealed in September call
Quantile, TriOptima face off in cleared swaps compression battle
Vendors both unveil new means for clearing members to crunch cleared rate swap notionals
ABS set for revival under US Treasury’s liquidity buffer plans
Allowing securitisations to count towards LCR and NSFR buffers could boost ABS market
Capital buffers needed to combat price bubbles, says Jarrow
Banks should carry extra capital to combat distortive effects of price bubbles, says academic
Cyber risk a top threat for energy firms
Cyber crime cited among top three external risks; scarce data makes modelling difficult
US Treasury hands CCP resolution powers to FDIC
Mnuchin regulatory review explicitly refers to FDIC as receiver under a Title II resolution
Eiopa official says no major cut in risk margin on the cards
Policy head expects no big changes in capital from 2018 Solvency II review
Fed weighs greater transparency on CCAR models
Disclosing model-implied losses would aid capital planning, bankers say
Malaysian central bank called to act against 1MDB officials
Bank Negara Malaysia says it will continue to work with international agencies over alleged fraud
Basel set to reopen NSFR derivatives debate
Contentious 20% add-on for derivatives liabilities to be reviewed this October
Bankers warn first TLAC bail-in could spark market shock
Regulators urged to clarify treatment of bail-in bonds under both TLAC and NSFR rules
Banks tout machine learning amid regulatory concerns
Machine learning being used to build challenger models for model validation
Banks fear uneven playing field on NSFR
Asian jurisdictions likely to implement key liquidity metric before US and Europe
CCAR feedback prompts banks to improve governance
Dual reviews of stress testing models and scenarios becoming the norm
DTCC muscles in on FRTB data pooling race
Rival to Bloomberg and Markit offerings claims ability to squash banks’ NMRF exposure by 50%
Citi hires Deutsche’s Americas op risk chief
Experienced op risk manager named global head of op risk for bank’s institutional clients group
FRTB: industry pushes to use own quotes in risk factor modelling
Isda working group proposes use of own quotes to minimise non-modellable risk factors
Asia warned of LEI crunch over Mifid II deadline
Tens of thousands more Asian LEIs needed to avoid European trading lock-out in January
Op risk managers give cautious welcome to new internal audit code
Updated guidelines could strengthen third line of defence, but firms warn costs could increase
US hedge accounting changes could spur small bank swaps boom
Banks eye opportunities to claim hedge accounting treatment for fixed-rate portfolios and callable debt