Regulatory Updates

Market participants widely anticipate the FDIC zeroing in on Part 370 compliance, including several critical deposit reporting/monitoring elements for which all banks should prepare.

In the current environment of heightened global scrutiny, firms must have a robust regulatory reporting platform that fosters a culture of shareholding disclosure oversight and transparency across all jurisdictions ― or face the consequences.

Deadlines to implement Basel IV in APAC bring significant challenges that need strategic attention.

These rules and calculation changes are materially different in scope and complexity. And if they are not already effective in your country, they will be – very soon. Read here to learn about these changes, deadlines, and the key questions to consider to be ready in time for Basel IV in APAC

The MT to MX migration — the focus of this article — is one of the most time-sensitive of many key evolutions in post-trade processing.

There has been significant regulatory activity since October 2021 when the European Commission published its CRR3 legislative package introducing the revised Basel III reforms (aka Basel IV) for euro-area banks.

Five financial institutions have shuttered in just five months — four in quick succession in March alone — something that has not happened in almost a century. Several remain under pressure and market scrutiny.

 

New Central Bank initiatives that streamline information gathering and processing from all financial institutions in the Philippines

 

After years of discussion, the European Central Bank (ECB) has settled on a concept, a design, and a timeline for an integrated reporting framework (IReF) that reduces the burden on banks, eliminates the redundancy of submitted information, and simplifies the regulatory requirements it monitors.

Just as financial institutions are getting a handle on a raft of trade and transactions rewrites including the quite challenging CFTC Rewrite and regime changes for ASIC, JFSA, and MAS, here comes ESMA with a bombshell — EMIR Refit.

Today, regulators worldwide have added clarity to the burgeoning environmental, social, and governance (ESG) framework by adopting and incorporating regulations that homogenize assessment methods and disclosure requirements.

The APAC Regulatory Landscape:
2022 Sets The Stage For Five Big 2023 Developments

Even as the world was just emerging after months of global lockdowns in 2022, instrumental changes were taking place in the Asia-Pacific world of regulations, triggering the need for a strategic platform transformation.

The ESG Landscape – An Avalanche Of Regulatory Requirements

Financial institutions are facing unprecedented challenges with the introduction of a host of ESG regulations. Regulators are moving away from the traditional approach to now requiring a combination of financial and non-financial information to assess the credit quality and sustainability of institutions, making the need for flexible ESG monitoring and reporting systems more urgent.

ESG Regulation EU 2020/852 (EU Taxonomy): Regional Initiative. Global Impact. Looming Deadline.

The UMR-driven FX clearing environment.
The introduction of Uncleared Margin Rules (UMR) significantly impacted the foreign exhange (FX) clearing world. It substantially increased trading costs for uncleared derivatives and thus, accelerated the expansion of clearing programs globally.

The issuance in March 2022 of a discussion paper on the APRA Comprehensive Data Collection program came as no surprise to APRA watchers/and regulated authorized deposit-taking institutions (ADI). The Australian Prudential Regulation Authority has long been voicing its intent to realize significant objectives including to

The Basel reforms are now just over the horizon for Canada. Under the new framework, many banks will face significant changes to RWA and capital ratios, and lower return on equity; they need to prepare now. Basel IV can be a strategic opportunity for firms implementing new rules, if they can get their response to the technical and functional challenges right.

The Swiss Financial Market Supervisory Authority (FINMA) has set out requirements for selected Swiss entities to begin parallel reporting runs in January 2023. The FINMA and Swiss National Bank (SNB) revisions reflect the final round of the internationally agreed-upon final Basel III (aka Basel IV) reforms for credit, market, operational, leverage, and liquidity risk management, capital requirements, and the related disclosure guidelines.

Effective on January 1, 2023, BACEN’s Resolution 229 poses challenging requirements that impact the way financial institutions currently calculate credit risk and how they report it. In March 2023, all banking segments must include its new requirements in their DLO submissions. Although all BACEN-regulated banks are affected, the most significant impact is on the largest banks (Segments 1-3).

With its long-expected Rewrite (DFA Parts 43 and 45), the CFTC aims to bring the US market into alignment with harmonized critical OTC derivatives data elements. Where this Rewrite is heading, so follows the EMIR Refit, and it is anticipated that the rest of the global regimes will follow suit, quickly reflecting CFTC and EMIR changes.