Enforcement

KRX Fines Merrill Lynch for High-Frequency Trading Activities

17/07/2019

KRX found that over an eight-month period, Merrill Lynch’s Seoul branch engaged in 6,220 high-frequency trades on behalf of a foreign hedge fund.

Enforcement

US SEC Penalises Nomura for Mis-sold Mortgage Backed Securities

17/07/2019

Nomura Securities International has agreed to repay approximately $25mn to affected customers and $1.5mn in SEC fines to settle the charges.

Market Infrastructure

Singapore Bankers ‘Flooded’ With Inquiries from Hong Kong – Reports

16/07/2019

Following Hong Kong’s extradition bill protests, wealth managers and private banks have seen increased queries from clients looking to set up channels to move assets to Singapore.

Market Infrastructure

SGX RegCo Proposes Price Limits for Auction Mechanism

16/07/2019

SGX already uses dynamic circuit breakers during continuous trading, but there is currently nothing similar used during the opening, mid-day and closing auctions.

Market Infrastructure

Japan Completes Migration to T+2 Securities Settlement Cycle

16/07/2019

Japan has migrated to its new T+2 securities settlement cycle, on schedule, following a final successful migration rehearsal test over the weekend.

Enforcement

SFC Fines Hong Kong Brokerage for Ineffective Short Selling Controls

16/07/2019

Glory Sun Securities has been fined HK$1.2m for failing to ensure compliance with short selling requirements. Two responsible officers and an account executive have also been suspended.

Crypto / Digital Assets

UPDATED – Bitpoint Japan Loses $28m in Crypto in Hot Wallet Hack

15/07/2019

The majority of the stolen funds belonged to clients and were held in hot wallets. Crypto exchanges in Japan are required to hold client assets offline in segregated cold wallets.

Market Infrastructure

MAS Raises Conduct Concerns in Financial Advisory Sector

15/07/2019

The MAS has commenced a review of the disciplinary frameworks at financial advisory firms, with a view to eventually sharing best practices and developing further guidance.

Capital / Liquidity

HKMA Asks Banks to Prepare Systems for Revised Leverage Ratio

15/07/2019

Both the revised leverage ratio treatment of client cleared derivatives and the revised disclosure requirements will come into effect in Hong Kong on 1 January 2022, in line with the BCBS timetable.