Enforcement

US SEC Penalises Bloomberg Tradebook Over Order Routing

07/05/2020

Bloomberg Tradebook let unaffiliated brokers make decisions about the routing of certain customer trade orders in a way that lowered its own costs, without informing affected customers.

Securities / Derivatives

SFC Defers IM Rules, Maintains 1 September for VM Requirements

07/05/2020

While variation margin requirements will still take effect from 1 September 2020 as planned, initial margin requirements for non-centrally cleared OTC derivatives will be deferred by one year.

Capital / Liquidity

APRA: Banks May Amend Loan Terms Without Full Serviceability Test

07/05/2020

APRA says banks may allow borrowers to change their loan conditions without conducting a normal serviceability assessment, but that such an arrangement should not exceed 12 months.

Securities / Derivatives

CBIRC Allows Banks to Offer Debt-to-equity Products to Investors

07/05/2020

Banks have already been using bond issuances and their own capital to carry out debt-to-equity swaps since 2016. They will now be allowed to offer these assets directly to investors.

Fintech / Regtech

Japan to Propose Easier Fintech Investment Rules for Banks – Report

07/05/2020

The proposal includes scrapping a requirement for bank holding companies to obtain FSA approval to acquire more than 15% of nonfinancial companies.

Securities / Derivatives

Singapore: HSBC Seeks Court Order to Replace ZenRock Management

07/05/2020

ZenRock is the latest Singapore commodities trader to come under scrutiny, for allegedly using the same cargo to secure financing from multiple banks.

Enforcement

SFC Fines Mega International Commercial Bank Over Sales Practices

07/05/2020

Mega did not properly assess clients’ investment objectives, risk tolerance levels and knowledge of derivatives, or ensure the suitability of its fund recommendations for clients.

Enforcement

Australia: Pershing Pleads Guilty to Breaching Client Money Rules

07/05/2020

Pershing Securities Australia, a BNY Mellon subsidiary, is the first company in Australia to face criminal prosecution for breaching client money provisions.

Securities / Derivatives

US SEC Green-lights Launch of New Stock Exchange, MEMX

07/05/2020

Backed by some of Wall Street’s largest financial institutions, MEMX says it will offer a less expensive exchange model; fewer, less complex order types; and a basic market data feed.