Market Infrastructure

BCBS, CPMI Warn of Continued Risks Associated with FX Settlement

20/12/2020

Expanding the availability of PvP settlement to a wider range of transactions and actors will reduce FX settlement risk and support global financial stability.

Fintech / Regtech

HKMA Outlines Regtech Use Cases for Pandemic Environment

18/12/2020

In its fifth issue of ‘Regtech Watch’, the HKMA outlines four potential regtech use cases relevant to the pandemic environment.

Securities / Derivatives

China Fund Managers Prepare to Launch Cross Market Bond ETFs

17/12/2020

Five fund managers have reportedly applied to launch bond index funds that can be traded on the Shanghai exchange, Shenzhen exchange, or the interbank market.

APRA, ASIC Offer Guidance on Super Fund Obligations

17/12/2020

Super funds can capitalise on potential synergies when building systems and processes for their Member Outcomes obligations and Product design and distribution obligations.

Enforcement

Taiwan Addresses Bank Misconduct With Higher Penalties: Fitch

17/12/2020

Banks are expected to work to strengthen their risk controls, particularly around wealth management to avoid penalties and preserve their corporate governance rankings.

Market Infrastructure

US Treasury Labels Vietnam, Switzerland as Currency Manipulators

17/12/2020

Taiwan, Thailand, and India have been added to Treasury’s monitoring list. Singapore intervened in the foreign exchange market in a “sustained, asymmetric manner”.

Enforcement

US SEC Settles Luckin Coffee Fraud Charges for $180m

17/12/2020

Luckin materially misstated its revenue, expenses, and net operating loss to falsely appear to achieve rapid growth and increased profitability, the SEC said.

Capital / Liquidity

MAS Consults on Operational Risk Capital, Leverage Ratio Requirements

17/12/2020

MAS intends to implement the revised standards for operational risk capital and leverage ratio requirements from 1 January 2023.

Securities / Derivatives

Euroclear Bank, Japan Launch New Asset Class: ‘Origami Bonds’

17/12/2020

Japanese cities Kobe and Yokohama as well as Shizuoka Prefecture were the first three issuers to utilise the new Origami bond structure.