Most concerns from market participants mirror those seen with the US shift to T+1, with additional worries surrounding exchange trading hours and post-trade windows, fragmentation of the region and increasing penalties.
Under the terms of the settlement, the Securities and Exchange Commission (SEC) will not receive any portion of the penalty until payment of all other allowed claims by the bankruptcy court have been completed.
The rule is “vague, overbroad and exceeds the US SEC’s statutory authority” claim the National Association of Private Fund Managers (NAPFM), Managed Funds Association (MFA), and Alternative Investment Management Association (AIMA).
Office of the Comptroller of the Currency (OCC) is ordering the bank to correct the deficiencies before onboarding new trading venues.
A new report from EFAMA estimates that roughly 40% of daily FX flows – representing between $50-70 billion - will no longer be able to settle through the CLS platform, resulting in increased risks.
At the FIX EMEA Trading Conference, panellists explored the scheduled shift to T+1 in North America, the impacts it will have on global jurisdictions and whether or not the UK and EU should follow suit.
Just over half of experts in the room at the FIX EMEA Trading Conference say that reducing existing requirements to focus more on guidelines should be the main priority for regulators across the board.
“No logical or economic basis for progressive penalties” says one association as others reply to European regulators to point out the damaging unintended consequences of such a system.
Watchdog has concluded areas of wholesale market data competition are not working thanks to some firms undue “market power”.
The first-of-its-kind benchmark data on the true cost of settlement inefficiency released by Firebrand Research shows some alarming statistics including how much the industry spent at the peak of volatility in 2021.