Big Picture

Fitch Ratings says the new regulations for conglomerates with interests in financial services will help contain systemic risks by limiting irregular financial activities and misconduct.

The majority of authorities surveyed by the FSB had a SupTech, innovation or data strategy in place. SupTech is most commonly used in regulatory reporting and data management.

Any decision to launch a CBDC would depend on an informed judgment that the risks can be managed, including the risk of disintermediating banks or enabling 'digital runs'.

In retail banking, scenario development commonly featured conduct risk. In Asia Pacific, fraud has also been a significant concern among FIs.

The development of common standards and taxonomies will facilitate automation and interoperability across derivatives and SFT markets.

But challenges remain, including limited liquidity in ARR markets, uncertainties on term rates and credit spread adjustments, and operational issues.

As nations across the globe come to terms with understanding and tackling climate change, mandatory reporting of such risks across capital markets could well become the norm.

A new report proposes a system for labelling issuers for firm-level greenness based on carbon intensity, the ratio of carbon emissions to revenue.

State Street found that 19% of Phase 5 and 6 firms are fully prepared for UMR compliance. Hedge funds are said to be the least prepared for compliance.

Under no circumstances should restrictions on trading be invoked because of increased volatility, the WFE says in a guidance note.