Intercapital Capital Markets was fined $50 million by the US Commodity Futures Trading Commission over claims its brokers helped bank clients attempt to manipulate the ISDAFIX between 2007 and 2012.
The Securities and Exchange Board of India has approved a set of know-your-customer rules for foreign portfolio investors, which are expected to be issued soon. The proposals would allow investors to trade in commodity derivatives, with the exception of sensitive commodities, and allow the domestic market common application form to be used for the registration of foreign portfolio investors.
Using data from Europe's revised Markets in Financial Instruments Directive to monitor fast-paced electronic markets may not be adequate for assessing the overall market activity or liquidity in certain markets such as derivatives products, a Bank for International Settlements report finds. "The most serious limitations arise from the lack of centralization and aggregation of the data," notes the report.
Some banks are switching responsibility for cyberrisk from IT departments to their operational risk departments and have begun to approach cyberrisk the same way they model market, liquidity and operational risks.
Parametric Portfolio Associates' strategy favoring listed options over other types of derivatives has allowed the firm more access to liquidity and less exposure to counterparty risk. By using bank quotes and liquidity displayed on screens, the company "[mixes] it up to make sure that we're getting the best possible execution for our clients," says Larry Berman, managing director for trading and operations.
ICE Clear Europe has asked the US Commodity Futures Trading Commission to allow it to amend some of its intraday margining policies to better manage risks, mainly affecting cleared futures and options energy contracts. The proposed changes include extending intraday margining hours and implementing additional buffer margin requirements.
Two new blockchain-based commodity trading platforms due to launch this year have received backing from some of the largest energy traders and banks.
TD Bank is partnering with Bottomline Technologies to combine Bottomline's Paymode-X with Visa Payables Solutions. The collaboration will streamline the processing of card, ACH and check payments, offering greater flexibility to TD Bank's business customers.
Square is considering adding banking and other services to its Cash peer-to-peer app, such as savings accounts and stock trading capabilities, says Chief Financial Officer Sarah Friar. The Cash app is growing faster than Venmo, according to a Nomura report, and Friar says customers are already storing sizable balances on the app.
Investing in a startup on a Friday and bringing the founder together with a potentially major client the following Tuesday is thrilling, says Amy Gu, managing partner of Hemi Ventures, which invests in early-stage startups. "I hope by seeing my success, people will realize that there are great female investors that can bring tremendous value to the table, not because of their gender, but because of their strength," she writes.