August 25, 2014
This post is inspired by two events. Firstly, an article in the Financial Times on how a US regulator is putting pressure on banks on matters of ethics. Secondly, I was recently asked to address a graduating class from a new academy in India. The FT article was from July 27th: “New York Federal Reserve […]
August 17, 2014
Insight form the coal face; in 2011 UBS had a $2.3B loss created by rogue trader Kweku Adoboli. Beyond the wrong doing and even conspiracy on the trading desk, operational processes failed. I have commented on this case before (see: The 3 Lessons from the UBS case). Recently, somebody more closely involved with those events shared […]
August 10, 2014
Liquidity is very important. This post suggests how a new Financial Market Utility (FMU) would be a valuable tool for the industry; it builds on last week’s post. This is the eighteenth in a series of posts on how banks and FI’s might adapt to new BCBS guidelines on intraday liquidity and FX settlement risk. […]
August 3, 2014
I believe that there is a need for an alternative mechanism to conserve liquidity. It is not possible to do better than CLS for FX flows; CLS is the gold standard. That should not mean that a complementary Financial Market Utility (FMU) would not be a valuable tool for the industry. This post describes what […]
July 27, 2014
Bi-lateral netting. Simple concept. Recent conversations with market practitioners and FinTech vendors have me wondering what the market needs. Below are some observations on the area and some questions; this week I would be grateful for active feedback. Give generously. This is the sixteenth in a series of posts on how banks and FI’s might […]
July 6, 2014
CLS settlement is a great thing. With the new rules on FX settlement coming into effect on Jan 1 2015, its value is higher than ever. But, not every FX trade can make use of CLS. What are the alternatives? This is the fifteenth in a series of posts on how banks and FI’s might […]
June 26, 2014
Things are moving! There are new rules coming into effect on Jan 1 2015 about measuring intraday liquidity and on settlement risk for FX trades that settle gross. Several conversations with industry friends over the last two weeks have revealed what banks and regulators are thinking. Comments on the following would be very welcome. This […]
June 21, 2014
With new rules coming into effect on Jan 1 2015, this is the thirteenth in a series of posts on how banks and FI’s might adapt. The previous posts are available on the 3CAdvisory website, click here. In the transaction banking business, intraday liquidity is not something that has traditionally been charged for explicitly or […]
June 14, 2014
With new rules coming into effect on Jan 1 2015, this is the twelfth in a series of posts on how banks and FI’s might adapt. The Nostros that find that their business is being allocated high liquidity costs have one immediate weapon at their disposal. If they are being allocated costs based on intraday […]
June 1, 2014
With new rules coming into effect on Jan 1 2015, this is the eleventh in a series of posts on how banks and FI’s might adapt. There is one further twist that the response to these regulatory changes might take. If an FI were indeed able to successfully integrate rap-time intra-day data back into its […]