Andrew Waxman takes a look back at 2012 and identifies the top 10 most significant operational risks of the year. Among them: a failure to protect segregated customer assets, sticking to a risk management strategy and business disruptions stemming from natural disasters.
Bank of New York Mellon has received regulatory approval for a central securities depository in Belgium, allowing it to help institutional investors access collateral required to comply with margin obligations.
High-frequency traders are essential to the workings of the markets because of the liquidity they provide, Knight Capital Group CEO Tom Joyce writes in this letter to The Wall Street Journal. Joyce argues that it's wrong to blame high-frequency traders for market issues such as the May 2010 "flash crash" or the disappointing Facebook initial public offering.
Client information and client asset integrity have become topics in regulatory exams, writes Tom Giachetti, chair of the Securities Practice Group at Stark & Stark. Exam questions are presenting scenarios in which an adviser shares offices with unrelated individuals or entities, and situations in which vendors may have access to client information. Confidentiality agreements are key in these circumstances, Giachetti writes, including with outside parties such as landlords.