While the industry recognises the importance of T+1 in safeguarding against avoidable risks, in particular given events like meme-stock, for now the long shadow cast by implementation challenges appears to be hampering market sentiment.
The market infrastructure triumvirate calls for market-wide mobilisation of support for digital asset standards.
Finger of blame is being pointed in each direction between custodians, non-US traders and settlement system CLS over FX cut-offs, with last minute decisions and confusion meaning some asset managers are now left facing operational challenges, pre-funding trades and balancing settlement security with best execution obligations.
Intercontinental Exchange (ICE) has received a $10 million dollar penalty while it and nine of its affiliates have been charged with failing to inform the US Securities and Exchange Commission (SEC) of a cyber intrusion.
The European market is facing significant challenges with financing needs which currently “far exceed” the capacity of the region’s fragmented markets, said Christine Lagarde, president of the European Central Bank, as she called for the market to embrace ESMA’s proposals.
The imposed penalty from the UK’s Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) is linked to an inputting error made by a trader on the firm’s Delta 1 desk back in May 2022.
Speaking at an industry event this week, Sarah Pritchard, executive director, markets and international at the FCA, highlighted key themes at the fore of the watchdog’s focus, including: the impact of geopolitical pressures on market development, the rationale behind recent unbundling rules, and the future outlook for insurgent technologies.
The TRADE sits down with Mike Carrodus, chief executive and founder of Substantive Research to unpack the UK’s Financial Conduct Authority’s (FCA) recent bundling rules, discussing the most important considerations for traders, expected speedbumps, and the state of play across the UK, US, and EU.
As the US SEC prepares to implement T+1 in less than two weeks, the Colombo Stock Exchange aligns with numerous other markets by shortening its settlement cycle.
Following a last-minute decision from Brussels in March to plug an accidental regulatory loophole, Annabel Smith explores what might’ve happened if the European market was left with no caps on dark trading and whether the events signal a wider issue in the European regulatory machine.