Category Archives: Markets regulation

Three bank employees arrested in UK insider-trading probe

Investigators at the City watchdog and the UK’s National Crime Agency have arrested three bank employees as part of a major insider-trading investigation. The arrests happened earlier this year but are not connected to the Panama Papers leak in April, a person familiar with the probe told the Financial Times. At least one of the arrests predates the data dump,…

SEC probing Wells Fargo’s sales practices

Wall Street’s top securities regulator has joined other US agencies in looking into Wells Fargo’s sham-account scandal, the US lender revealed on Thursday. The Securities and Exchange Commission is among the US watchdogs that has “undertaken formal or informal inquiries, investigations or examinations” into the California-based bank’s sales practices, Wells Fargo said in a quarterly regulatory filing. The company has…

SEC weighs greater oversight of Treasury trading platforms

The US Securities & Exchange Commission is developing recommendations to extend trading-platform regulations to venues that only trade Treasuries, which would remove a nearly 20-year-old exemption and expand oversight of principal trading firms. The SEC joined the US Treasury Department in its public reporting of some trading data for the $13tn market, according to remarks from chair Mary Jo White…

US securities regulators tout another record year for enforcement

It’s been another busy year for the US Securities and Exchange Commission, which said on Tuesday that it brought a record number of enforcement actions and awarded more money to whistleblowers than ever before. During fiscal year 2016, which ended September 30, the US securities regulator filed 868 enforcement actions, up from 807 in FY 2015 – the most in…

EU eyes banks in a clearing house emergency

©AP Banks, commodity traders and asset managers may be forced to participate in emergency fundraising if a clearing house in the European Union collapses, under new proposals being considered by Brussels. The plans, which the EU Commission envisages publishing in November, are set to be the first major financial services proposal by Brussels since the UK’s vote in June to…

Money market reform triggers $1tn exodus

©AFP An important corner of the US financial system has suffered a notable $1tn earthquake this year, rattling funding conditions for companies, banks and even US states. But some asset managers sense opportunities in the shifting landscape. Money market funds have for decades been a vital lubricant of the global financial system, funnelling household savings and corporate cash piles into…

CFTC speeds up crackdowns in September

©Bloomberg Drivers are advised to slow down at the end of the month to avoid police meeting speeding ticket quotas. For wrongdoers in derivatives markets, crackdowns come at the end of September. Last week the US Commodity Futures Trading Commission announced 11 enforcement actions against market participants as diverse as Wells Fargo bank and a former fuel trader for Delta…

Q&A: Pilot to boost small US listed stocks

©Getty From Monday US equity markets will become the test bed for a radical pilot scheme aimed at boosting liquidity in thousands of its smallest listed stocks. “This is not just a tiny corner of the market. While individually these stocks are illiquid, in sum they add up to about 11 per cent of all US equity trading. That’s more…

FCA’s crackdown on individuals bears fruits

©Bloomberg A promised regulatory crackdown on individual behaviour rather than headline-grabbing fines on companies is beginning to bear fruit, with the number of people banned from holding jobs in the City of London rising for the first time in four years. The UK’s Financial Conduct Authority banned 27 people after regulatory infractions last year — a slight uptick on the…

BT and Ofcom reach impasse over Openreach

Negotiations between Ofcom and BT over a voluntary deal to transform Openreach into a legally separate company have hit an impasse with the two sides refusing to bridge a “substantive gap” in their views on two key governance issues. Meetings held last week between Gavin Patterson, chief executive of BT, and Sharon White, chief executive of Ofcom, failed to reach…