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.

Market Infrastructure

Japan FSA, CFTC Agree to Mutually Recognise Derivatives Platforms

15/07/2019

Certain FSA-regulated derivatives trading platforms will be exempt from the requirement to register with the CFTC, and the FSA will facilitate authorisation for CFTC-regulated platforms.

Market Infrastructure

FSB Seeks Industry Input on Cyber Incident Response and Recovery

15/07/2019

The survey will inform the FSB’s development of a toolkit of effective practices for responding to and recovering from cyber incidents.

Market Infrastructure

SGX Launches New Trading Engine from Nasdaq

15/07/2019

The upgrade standardises and unifies SGX’s operations, messaging and data infrastructure, enabling greater flexibility, speed and cost-efficiency when launching new products and services.

Enforcement

Korea Exchange Fined for Making False Statement to CFTC

14/07/2019

The CFTC found that KRX failed to disclose that it was not in compliance with a requirement to use daily stress tests to evaluate the sufficiency of its financial resources.

AML / KYC

US Authorities Probe Deutsche Bank Dealings With 1MDB

13/07/2019

The DOJ probe is looking into whether Deutsche Bank failed to comply with US AML or foreign bribery laws in the course of raising $1.2bn for 1MDB in 2014.