RBC Capital Markets has invested in a quasi real-time risk monitoring system in order to be better able to manage its trading positions and exposures, according to Richard Wilkinson, director of clearing and infrastructure sales for futures at the firm. Speaking at a SunGard event in London earlier this week, Wilkinson explained how RBC Capital Markets now has in place a traffic light system for monitoring and highlighting risks on an intraday basis.
US Republican senator Richard Shelby may be sceptical about the Financial Services Bill’s proposals for the establishment of a data collection agency (see 
Following the publication of the new agreed template for the global collection of hedge fund data by the International Organisation of Securities Commissions’ (IOSCO) Technical Committee in February (see our coverage 
Recent letters between Michel Barnier, the European Commission’s internal market and services commissioner, and US Treasury secretary Timothy Geithner indicate that data sharing is very much at the top of the regulatory agenda at the moment, especially with regards to derivatives. The issue of trade data repositories is at the heart of the debate, as European regulators are concerned that a US-based single repository might not be the right option and multiple repositories may be needed, especially one based in Europe.
As noted by A-Team Insight at the start of this year (see our coverage 
Value at risk (VaR) should not be used in isolation but rather as one tool within a wider risk modelling toolbox that comprises of both mathematical models and scenario testing, according to Willi Brammertz, senior risk advisor at risk and regulatory reporting solution vendor FRSGlobal. Brammertz, who joined FRSGlobal back in 2008 when it acquired risk management solution specialist vendor Iris (see 
Following the feedback received last week (see 
The introduction of new global liquidity risk management reporting requirements could result in potentially negative unintended consequences such as making it too expensive to lend, according to a group of 150 financial institutions. The comments have been prompted by the publication of the Basel Committee on Banking Supervision (BCBS) recommendations on liquidity risk at the end of last year and the related consultation period, which is due to end this week. A number of global financial institutions have taken the opportunity to provide their feedback on the proposals and indicated that they believe them to be based on incorrect assumptions and potentially very costly for the industry as a whole.
Following the publication by five US regulatory agencies of a joint policy statement on principles of funding and liquidity risk management in July last year, 22 financial industry representatives have commented on the proposals. The regulators have this month published these responses to the statement, which adds new requirements for market participants based on the Basel Committee on Banking Supervision’s (BCBS) September 2008 principles.
In order to assist the European financial services community in its attempts to improve liquidity risk management, the Committee of European Banking Supervisors (CEBS) has published a new consultation paper on how to go about producing an effective allocation mechanism for liquidity costs, benefits and risks, CP36. The recommendations are aimed at providing firms with a framework upon which to build internal pricing mechanisms to price liquidity risk and to align liquidity risk management culture across their organisation via suitable incentives, which are likely to include significant data gathering and technology requirements.
The rise in the number of chief risk officers (CROs) across the industry has been a significant phenomenon in the post-crisis world, but given that a board level risk function is a relatively new position, how should successes be measured? A recent discussion in a CRO Linkedin forum indicates that proactive risk measurement and management is the new buzzword with regards to judging performance and technology should be an integral part of this approach.
Following the signing of a partnership agreement to launch an entity identification joint venture last April (see our coverage 
Next month, industry practitioners will have four opportunities to provide feedback to the Committee of European Banking Supervisors (CEBS) on its risk related proposals, including those around concentration risk and stress testing. The regulatory body has organised four separate hearings at its London premises to garner feedback on a number of its recent consultation papers, all of which involve technology and systems considerations.
The Committee of European Banking Supervisors (CEBS) was originally established as a forum to lead the charge towards a new Basel framework but in recent years it has become increasingly focused on the practical realities of risk management. Giovanni Carosio, deputy director general of the Bank of Italy who took over the reins as chairman of CEBS last September from Kerstin af Jochnick, recently elaborated on the regulatory body’s changing role and the position it feels the European Banking Association (EBA) should adopt in the building of a new IT infrastructure for regulatory data exchange in Europe.
There is a degree of tension between those seeking to reflect the “truth” with changes to accounting standards and those wishing to reflect the concerns of prudential regulators, according to UK Financial Services Authority (FSA) chairman Adair Turner. In a speech last week to the Institute of Chartered Accountants in England and Wales (ICAEW), Turner discussed the difficulty in revising accounting standards from the regulator’s perspective and the data challenge inherent within this process.
A-Team Insight Events combine A-Team's expertise in financial markets IT with thought leadership from world-class technology innovators and practical experience from financial market practitioners. In 2011, a quality constituency will once again gather for these focused events in London and New York City.
As noted by A-Team Insight earlier this year (see here), the launch of the European Central Bank’s (ECB) Target2-Securities (T2S) project has been delayed by at least a year due to a “longer than expected” development phase. Hugh Simpson, senior advisor to the T2S programme from Bourse Consult, told delegates to last week’s Xtrakter user conference that new launch date will be September 2014, rather than the previously stated mid-2013. The industry consultation period may have been long enough to delay the launch, but have industry participants really considered the wide ranging impact of T2S and its related directive, including on the corporate actions process?
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