News Centre

BIS: Big Techs In Finance: Regulatory Approaches And Policy Options

Date 16/03/2021

Highlights

• At present, financial services represent a relatively small part of big techs' overall activities, though this can change rapidly due to the unique features of their business models and they could quickly become systemically important – or "too big to fail".
• Big techs' financial operations are subject to the same requirements as those of other market participants. As such, big techs need to hold appropriate licences to perform regulated financial activities or provide their services in partnership with financial institutions that meet the regulatory requirements.
• Risks connected with big tech activities in finance may not be fully captured by the regulatory approach up to now, which is geared towards individual entities or specific activities and not the risks that are created by substantive interlinkages within big tech groups and their role as critical service providers for financial institutions.
• An effective oversight of big tech activities in finance calls for going beyond a piecemeal policy framework and considering recalibrating the mix of entity-based and activity-based rules, in favour of the former in certain policy areas. A step further would be to assess the possibility of introducing a bespoke approach for big techs encompassing a comprehensive public policy framework. In any case, there is a need for enhancing cross-sectoral and cross-border cooperative arrangements.

Moscow Exchange: Revised Maximum Quantity Of Securities Eligible As Collateral On Derivatives Market

Date 16/03/2021

CCP NCC changes maximum quantity of securities eligible as collateral on Derivatives Market starting from 7:00 p.m. on March 22, 2021:

A Forward Look At Regulation Of The UK’s Wholesale Financial Markets - Keynote Speech By Edwin Schooling Latter, Director Of Markets And Wholesale Policy At The FCA, Delivered At The ISLA's Post Trade Conference On 16 March

Date 16/03/2021

Highlights

• Decisions to tailor securities financing transaction reporting and settlement buy-in rules to achieve the desired outcomes in the way that best fits UK-based markets.
• The FCA welcomes recommendations to look at aligning prospectus documentation requirements with the type of capital raise being undertaken.
• There is scope to simplify and remove costs from some parts of the MiFIDII regime without material loss of benefits.

FIA Industry Survey Finds Positive Outlook For Growth Of Cleared Derivatives Markets - Majority Of Respondents Expect Growth To Continue, Led By Commodities And Equities; Pandemic And Political Risks Top List Of Concerns Facing The Industry; And China, Bitcoin And Operational Efficiency Are Key Focus Areas For Banks, Brokers And Technology Vendors

Date 16/03/2021

FIA today released a report summarizing the findings from a survey conducted at the beginning of 2021 to assess the outlook for the global cleared derivatives industry. The survey gathered feedback from people working at banks, brokers, exchanges, technology vendors and other firms that support the trading and clearing of derivatives such as futures and options.

UBS MTF Trading Notice: Rulebook & User Guide Changes

Date 16/03/2021

Following the publication on March 11, 2021 of the UBS MTF Market Notice N4 announcing the transfer of the operations of UBS MTF from UBS AG London Branch to UBS MTF Limited, UBS MTF would like to  inform its Members of changes to its Rule Book and User Guide. 

The Tel-Aviv Stock Exchange Reports The Results Of The Financial Statements For The Fourth Quarter And For 2020 -Substantial Growth In All Parameters For TASE In 2020, With A 110% Increase In The Net Profit

Date 16/03/2021

• TASE's revenues for 2020 increased by 17%, amounting to NIS 304 million, compared to NIS 260 million in 2019.
•  
• The profit more than doubled and amounted to NIS 36.9 million in 2020, compared to a profit of NIS 17.6 million in 2019.
• Adjusted EBITDA amounted to NIS 95 million in 2020, compared to NIS 63 million in the corresponding period last year.
• In 2020, NIS 4.6 billion was raised in 27 IPO's, the highest number since 2007. Capital raising on the equities market amounted to NIS 17 billion, compared to NIS 13.3 billion in 2019.
• Capital raising on the bonds market also soared, as the Israeli government raised the highest amount in 20 years, to finance the Coronavirus Aid Program.

Moscow Exchange: Risk Parameters Change For The Security MU-RM

Date 16/03/2021

As per the Securities market risk parameters methodology, on 16.03.2021, 17-16 (MSK) the upper bound of the price band (up to 7260) and initial margins (up to 23.75 %) for the security MU-RM were changed. New values are available here

ETFGI Reports Assets Invested In Etfs And Etps Listed Around The World Reach A New Record Of US$8.30 Trillion At The End Of February 2021

Date 16/03/2021

ETFGI, a leading independent research and consultancy firm covering trends in the global ETFs and ETPs ecosystem, reported today that reports assets invested in ETFs and ETPs listed around the world reach a new record of US$8.30 trillion at the end of February. ETFs and ETPs listed globally gathered the highest ever monthly net inflows of US$139.46 billion during February, bringing year-to-date net inflows to a record level of US$222.54 billion. Assets invested in the global ETFs/ETPs industry have increased by 3.0% from US$8.06 trillion at the end of January 2021, to US$8.30 trillion at the end of February, according to ETFGI's February 2021 Global ETFs and ETPs industry landscape insights report, the monthly report which is part of an annual paid-for research subscription service. (All dollar values in USD unless otherwise noted.)

DTCC Proposes Way Forward To Achieving Global Data Harmonization In Derivatives Trade Reporting - New Perspectives Paper Recommends Course Correction To Eliminate Cross-Jurisdictional Differences In Trade Reporting Standards To Boost Transparency And The Monitoring Of Systemic Risk

Date 16/03/2021

The Depository Trust & Clearing Corporation (DTCC), the premier market infrastructure for the global financial services industry, today outlined a three-prong plan to further harmonize derivatives trade reporting requirements and deliver against the objectives that were originally established by the Group of 20 (G20) at its historic 2009 summit in Pittsburgh.

Brave New World - Speech By Sam Woods, Bank Of England Deputy Governor For Prudential Regulation And Chief Executive Officer Of The Prudential Regulation Authority Given At The Association Of British Insurers.

Date 16/03/2021

Sam Woods says regulation of the insurance sector in the UK is about to change.

He says more of the rules insurers need to follow will be set out in the Prudential Regulation Authority’s rule book rather than in law.

He also looks at the review of Solvency II, the regime introduced by the EU in 2016 to harmonise insurance regulation.

Sam stresses none of the changes will mean lower levels of protection for policyholders or less resilient insurance firms.