Blog

Digital quarantine
08/04/2020

So here is how things are: we've been confined to our homes for a few weeks now, the hashtag #keepsafe is everywhere and we watch various videos on how to thrive on our new lifestyles (teleworking, e-learning, e-aperitifs, home exercise). Even my parents have gotten into it and they are now permanently on WhatsApp, Skype, Internet and videoconferencing! What was once occasional it has now become their daily life. In…

How will UMR affect the collateral marketplace?
07/04/2020

Since the 2008 financial crisis, regulators have made huge strides towards stabilising the global financial system via regulatory reform. The US Dodd-Frank Act, Basel III, the European Market Infrastructure Regulation (EMIR) and other global equivalents have provided a tidal wave of regulatory change which, in the current economic climate coupled with stressed market conditions, has exasperate institutions’ antiquated IT infrastructures, the lack of regulatory compliance, increased margin and dispute volumes,…

FCA and PRA provide flexibility on Senior Managers & Certification Regime for dual regulated firms in response to the Covid-19 pandemic
06/04/2020

On Friday 3rd April, the FCA and PRA issued a joint statement outlining their expectations of dual regulated firms regarding the Senior Managers and Certification Regime (SM&CR), and how a firm’s governance procedures may be impacted by coronavirus (Covid-19). It is clear the FCA and PRA are keen to provide flexibility to dual regulated firms during these uncertain times, and have provided updates in six key areas of SM&CR, a…

PRA extends reporting deadlines to ease pressure on firms
03/04/2020

The PRA has issued a statement regarding its approach to regulatory reporting and Pillar 3 disclosures in response to COVID-19 for UK banks, building societies, designated investments and credit unions. The PRA will accept delayed submission for regulatory reporting where the original remittance deadlines fall on or before 31st May 2020. The list of reports that can be delayed for a month are as follows: COREP Solvency FINREP NSF Large exposures and concentration risk Leverage ratio Asset…

Accelerate Your Journey Towards UMR Compliance with VERMEG
31/03/2020

The insidious presence of COVID-19 and its impact on society and the financial markets knows no bounds. The financial markets have been in meltdown causing huge volatility and increased margin call volumes, thus causing firms to re-evaluate their priorities where Phase V UMR compliance is concerned. Firms are now having to take a more tactical approach and ensure the continued operation and the management of market risk is paramount in…

A Window of Opportunity
30/03/2020

2020: the year to reset your regulatory reporting foundations? How about some focus on data gathering, data quality, operating processes and mitigating key person risks for regulatory reporting? Before Basel III finalisation (a.k.a. Basel 3.1 or Basel IV)… A few weeks ago, I’d been planning to focus this article on what firms could do to make use of the gap between now and the next wave of Basel-influenced changes (SA-CCR, FRTB etc).…

Basel III Implementation deferred until 2023 in response to Covid-19
30/03/2020

On Friday it was announced that the Implementation date of the remaining Basel III standards, which were due to come into force in January 2022, will be delayed by a further year, giving a new implementation date of 1 st January 2023. The Basel Committee's Oversight body, the Group of Central Bank Governors and Heads of Supervision (GHOS) endorsed a number of measures to provide banks and supervisor's additional operational…

Why adopting digital journeys will become standard practice during and after the pandemic
27/03/2020

We are living in unprecedented times, unlike anything we have seen before. The health of our community is the primary focus and it’s amazing to see how people can all pull together. For example, in the UK Formula 1 manufacturers are getting their scientists and engineers to see if they can build desperately needed ventilators, fashion companies are producing medical gowns and masks and breweries are producing alcohol hand sanitisers. The financial markets are reflecting…

Join the STP Army
19/03/2020

“In 2020 a crack fintech commando unit were sent to prison by a military court for a crime they did not commit. These people promptly escaped from maximum security stockade to the Los Angeles underground. Today, still wanted by the government, they survive as soldiers of fortune within collateral management. If you are struggling with margin call volumes, significant adverse operational capacity issues, if nobody…

Regulatory Wars Phase V – The Fintech Strikes Back….The Final Chapter
15/03/2020

Previously on Regulatory Wars Phase V – The Fintech Strikes Back…. A long time ago in a galaxy far, far away…It is a period of civil war. Rebel fintech spaceships, striking from a hidden base, have won their first victory against the evil Galactic Regulatory Empire……… Rebel Fintech companies have now stolen plans to the Galactic Regulatory Empire's Death Star, a moon-sized space station capable of destroying market liquidity and collateral mobility. Princess Leia, secretly one of the Rebellion's leaders, has…