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ISDA Annual General Meeting, May 11, 2023, Chairman Remarks, Eric Litvack, ISDA Chairman

Date 11/05/2023

Good morning, everyone.

It’s great to be back in Chicago again, a city that is truly steeped in financial history. It’s here that the Chicago Board of Trade introduced the first standardized futures contracts in 1865, a big step on the path to the development of modern derivatives markets. It’s also here that the Chicago Butter and Egg Board, a forerunner of CME Group, was founded in 1898, reinforcing Chicago as a focal point for the trading and risk management of commodities.

Statement Of CFTC Commissioner Christy Goldsmith Romero In Support Of Enforcement Action Against Bank Of Nova Scotia For Widespread Use Of Whatsapp And Text Messaging To Evade Regulatory Oversight

Date 11/05/2023

I support this enforcement action against the Bank of Nova Scotia (“BNS”), headquartered in Canada, as another victory for holding banks accountable for their pervasive use of unauthorized communication methods, like Whatsapp and private texts, to avoid regulatory oversight.  After previously bringing enforcement actions that levied over $700 million in penalties against 11 Wall Street banks,[1] the Commission continues to send a zero tolerance message to banks who seek to evade regulatory oversight.  The CFTC continues to bring accountability in these cases in partnership with the Securities and Exchange Commission (“SEC”).

Acting US Comptroller Of The Currency Issues Statement In Support Of FDIC Notice Of Proposed Rulemaking On Special Assessments

Date 11/05/2023

Acting Comptroller of the Currency Michael J. Hsu today issued a statement in support of the Federal Deposit Insurance Corporation (FDIC) notice of proposed rulemaking on special assessments. The special assessment is intended to recover the losses to the Deposit Insurance Fund incurred by protecting the uninsured depositors of Silicon Valley Bank and Signature Bank following the U.S. government’s systemic risk determination in March 2023.

Statement Of CFTC Commissioner Kristin N. Johnson Regarding CFTC Order Against The Bank of Nova Scotia and Scotia Capital USA Inc. For Recordkeeping And Supervision Failures Relating To Offline Communications

Date 11/05/2023

Today, the Commodity Futures Trading Commission (CFTC or Commission) issued an order settling charges against The Bank of Nova Scotia and Scotia Capital USA Inc. (together, “BNS”) for failing to maintain, preserve, and produce records in compliance with CFTC recordkeeping requirements with respect to certain offline communications (often carried out through chat or social media messaging platforms).  BNS also failed to diligently supervise matters related to its CFTC-registered businesses with respect to this conduct.  The settlement order requires BNS to pay $15 million for these violations, and also to implement immediate and effective remediation measures to ensure compliance with the Commodity Exchange Act (CEA) and Commission regulations, including ensuring appropriate recordkeeping and supervision.

Canadian Securities Administrators Announces Exemptions From Filing Requirements During Switch To System Of Electronic Data Analysis And Retrieval+ (SEDAR+)

Date 11/05/2023

Members of the Canadian Securities Administrators (CSA) are announcing exemptions from certain filing requirements to address the brief period when the System of Electronic Document Analysis and Retrieval (SEDAR) will be switched to a new centralized system, SEDAR+.

CFTC Orders The Bank Of Nova Scotia To Pay A $15 Million Penalty For Recordkeeping And Supervision Failures For Widespread Use Of Unapproved Communication Methods

Date 11/05/2023

The Commodity Futures Trading Commission today issued an order simultaneously filing and settling charges against The Bank of Nova Scotia, a provisionally registered swap dealer and Scotia Capital USA Inc., a futures commission merchant, (collectively BNS Affiliates). The order charges BNS Affiliates with failing to maintain, preserve, or produce records that were required to be kept under CFTC recordkeeping requirements, and failing to diligently supervise matters related to their businesses as CFTC registrants.

BIS Innovation Hub Publishes Guide On Offline CBDC Use

Date 11/05/2023

• BIS Innovation Hub publishes a handbook on key issues related to how central bank digital currencies (CBDCs) could work offline.
• Among the issues addressed are security, privacy, risks, solution types and operational factors.
• Further work on the practical aspects of implementing security and resilient CBDC systems is ongoing.

TriCrypto: Curve's Ace In The Hole - Kaiko Research: Deep Dive

Date 11/05/2023

Curve recently made waves with the release of crvUSD, its new stablecoin. However, another under-the-radar development at Curve could cause an even more significant shift in the DeFi landscape: a new TriCrypto pool [1]. This pool contains three high-volume Ethereum assets—ETH, USDT, and wBTC—and could potentially challenge Uniswap's market share. In this article, we'll examine the current breakdown of market share and explore how the changes to TriCrypto could disrupt the status quo.

BIS: Rising Interest Rates And Implications For Banking Supervision

Date 11/05/2023

Highlights

• The recent market turmoil exposed heightened vulnerabilities of banks with material exposures in long-term, fixed rate assets that are fuelled by shorter-term, less stable funding. As interest rates rise, such entities may incur significant declines in asset values, while being exposed to volatile funds providers who may flee at the first sign of trouble, triggering a broader crisis of confidence.
• While regulatory requirements are fundamental, they cannot, in isolation, address all ways in which higher rates could impact a bank's solvency and liquidity. Moreover, capital requirements are sensitive to banks' accounting classification choices, while liquidity rules are premised on assumptions about deposit stickiness and the ability to sell assets at a reasonable cost.
• The supervisory review process, on the other hand, takes into account bank-specific characteristics and provides supervisors with various tools to address the confluence of risks caused by rising rates, and the ability to act preemptively before risks crystallise.
• Further guidance that supports supervisors' ability and will to act may help to provide structure and consistency to supervisory decision-making, while allowing room for judgment.

Keynote Address At The 21st Symposium On Building The Financial System Of The 21st Century: An Agenda For Europe And The United States, SEC Commissioner Mark T. Uyeda, Frankfurt, Germany, May 11, 2023

Date 11/05/2023

Thank you, John [Gulliver],[1] for the warm introduction.  I’m honored to provide remarks at the 21st Annual Symposium on Building the Financial System of the 21st Century for Europe and the United States.  I would like to recognize the efforts of Hal Scott, the founder of the Program on International Financial Systems, for his foresight and vision in establishing these dialogues with key market participants from around the world.  One of Hal Scott’s other initiatives, the Committee on Capital Markets Regulation, has also contributed valuable reports for developing efficient capital markets and promoting policy reforms to enhance opportunities for investors.  I have personally found a lot of value in the high quality and data-driven analyses over many years from the Program and the Committee, including recent comments on the U.S. Securities and Exchange Commission’s market data structure and open-end fund liquidity proposals, and its work on regulatory reform.