Market Infrastructure

ASIC, ESMA Sign MOU to Cooperate on Benchmarks

22/10/2019

The MoU sets out cooperation arrangements to complement the EU’s July equivalence decision, as well as to ensure effective information exchange and supervisory coordination.

Securities / Derivatives

SSE, SZSE Grant Stock Connect Access to HK Dual Class Shares

22/10/2019

The rule changes come over a year after the China and Hong Kong bourses started working towards including dual class shares in Stock Connect.

Securities / Derivatives

Korea to Lift Ban on Brokers Lending to Overseas Units

21/10/2019

Large brokerage firms will be allowed to extend loans to their overseas operations to better finance their global outreach.

Enforcement

US SEC Charges Chinese Traders in Market Manipulation Scheme

21/10/2019

The market manipulation scheme involved 18 traders primarily based in China, over 3,900 US-listed securities and over $31mn in illicit profits.

Securities / Derivatives

NGFS Publishes Guide to Sustainable Investing for Central Banks

21/10/2019

The guide identifies the five most common ‘sustainable and responsible investment’ strategies used in central bank portfolio management.

Capital / Liquidity

BCBS Releases 17th Progress Report on Basel III Adoption

21/10/2019

Since the previous report, member jurisdictions have made the most progress in adopting the NSFR, IRRBB, and large exposures framework.

Capital / Liquidity

Korea to Impose Loan-to-Deposit Cap on Savings Banks

21/10/2019

The loan-to-deposit rate at savings banks will be limited to 110% starting from 2020, and further tightened to 100% in 2021. Currently, commercial banks already face the 100% limit.

AML / KYC

New Zealand FX Broker Issued Formal Warning for AML Violations

21/10/2019

Forex brokerage Circle Markets Limited did not dispute the FMA’s findings, and its sole director admitted to not fully understanding his AML/CFT obligations.

Market Infrastructure

AMAC Warns of Concentration Risk in China Funds Industry

21/10/2019

Over 20,000 private fund managers registered with AMAC are controlled by fewer than 2,000 people, prompting concerns of excessive concentration in the industry.