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  • Office of Financial Research Update: Research Paper, “Investor Concentration, Flows, And Cash Holdings: Evidence From Hedge Funds”

    Date 15/12/2017

    The OFR issued a research paper, “Investor Concentration, Flows, and Cash Holdings: Evidence from Hedge Funds.” The working paper says, some hedge funds have a few large investors. Such a concentrated investor base can make a fund vulnerable to unexpected requests for large redemptions. The paper shows that U.S. hedge funds in part account for that risk by holding more cash and liquid assets. These holdings help funds accommodate large outflows, but also result in lower risk-adjusted returns.

  • ESMA Issues Updated Statement On Preparatory Work In Relation To CFDs, Binary Options And Other Speculative Products Offered To Retail Clients

    Date 15/12/2017

    The European Securities and Markets Authority (ESMA) has issued a statement updating on its work in relation to the sale of contracts for differences (CFDs), binary options and other speculative products to retail investors.

    Statement on preparatory work of the European Securities and Markets Authority in relation to CFDs and binary options offered to retail clients

    The European Securities and Markets Authority (ESMA) is issuing this statement to provide an update on its work in relation to the provision of contracts for differences (CFDs), including rolling spot forex, and binary options to retail clients. 

    ESMA has been concerned about the provision of speculative products such as CFDs, including rolling spot forex, and binary options to retail clients for a considerable period of time and has conducted ongoing monitoring and supervisory convergence work in this area. Some competent authorities have also adopted national measures to limit the provision of these products to retail clients.

  • Federal Reserve Vice Chairman Quarles Will Voluntarily Recuse Himself From Participating In Matters Specific To Wells Fargo To Avoid Even The Potential Appearance Of A Conflict Of Interest

    Date 15/12/2017

    The Federal Reserve Board on Friday announced that Vice Chairman Randal K. Quarles will recuse himself from participating in matters specific to Wells Fargo & Company. While this action is voluntary and is not legally required, it is being taken to avoid even the potential appearance of a conflict of interest.

  • EBA Consults On Draft Technical Standards On Risk Retention For Securitisation Transactions

    Date 15/12/2017

    The European Banking Authority (EBA) launched today a public consultation on its draft Regulatory Technical Standards (RTS) specifying the requirements for originators, sponsors and original lenders related to risk retention as laid down in the new EU securitisation framework (STS Regulation). The RTS aim to provide clarity on the requirements relating to risk retention, thus reducing the risk of moral hazard and aligning interests. The consultation runs until 15 March 2018.

  • CFTC Launches Virtual Currency Resource Web Page

    Date 15/12/2017

    The Commodity Futures Trading Commission (CFTC) today launched a virtual currency resource Web page, cftc.gov/bitcoin. This dedicated page is a central repository for Commission-produced resources about virtual currency, and is designed to educate and inform the public about these commodities, including the possible risks associated with investing or speculating in virtual currencies or recently launched Bitcoin futures and options.