Financial Regulatory Forum

COLUMN – Rogue traders, delta trading and exchange-traded funds

By Guest Contributor
October 7, 2011

By Helen Parry, the views expressed are her own.

LONDON, Oct. 7 (Thomson Reuters Accelus) - There are many common features in cases of rogue or unauthorised trading, including the use by ostensibly riskless arbitrage traders of fictitious trades on internal systems to mask their unhedged positions. One obvious feature that is present in many rogue trader cases has been a failure in trade confirmation systems and controls. This feature frequently appears conterminously with the fact that a trader has intimate knowledge of and/or power and influence over middle and back office systems. (more…)

Role of hedge-fund boards gains importance in face of compliance, legal pressures

By Guest Contributor
October 7, 2011

By Judith Gross, Contributing Author. The views expressed are her own.

NEW YORK, Oct. 7 (Thomson Reuters Accelus) - The role of directors on offshore hedge funds has often been, at best, a limited oversight one, with perfunctory meetings and a limited interchange with the fund itself during the year. That has been changing – slowly – as compliance moves to the top of the list of concerns for investors and managers alike. In addition, directors themselves are realizing that the status quo is no longer tenable.

U.S. SEC warns brokers over market access, sub-accounts in debut “risk alert”

By Guest Contributor
September 30, 2011


By Stuart Gittleman and Brett Wolf

NEW YORK, Sept. 30 (Thomson Reuters Accelus) – The U.S. Securities and Exchange Commission (SEC) issued an unexpected warning to broker-dealers to supervise trading by customers with direct market access, especially customers that trade using master- and sub-accounts.

from Christopher Whalen:

The cure for higher ATM fees is competition

September 30, 2011

Why are Bank of America and other large US banks increasing fees for the use of debit cards and other services?

Advice for Chelsea Clinton: How to be a good board member

By Lucy P. Marcus
September 28, 2011

By Lucy P. Marcus
The views expressed are her own.

The high profile appointment of Chelsea Clinton to the board of IAC/InterActiveCorp comes at a time when the individual and collective performance of board directors is being scrutinized more thoroughly and more publicly than ever before. A good board can be rocket fuel or it can be rocks in an organization’s pockets. But what does a  new board member need to be active, engaged, and dynamic?

The compliance lessons, so far, arising from the UBS rogue trader

By Guest Contributor
September 23, 2011

LONDON, Sept. 23 (Thomson Reuters Accelus) – UBS’s loss of $2.3 billion has hit the headlines worldwide, and while full details of what went wrong are unlikely to be public in the near future there are already compliance lessons for other firms. UK and Swiss regulators have launched an investigation into:

U.S. SEC finds a new asset class for insider trading: ETFs

By Guest Contributor
September 22, 2011

By Stuart Gittleman

NEW YORK, Sept. 22 (Thomson Reuters Accelus) – In its first such action involving exchange-traded funds, the Securities and Exchange Commission charged a former Goldman Sachs employee with trading on confidential information about the firm’s trading strategies and plans he learned while working on its ETF desk.

Rolling the Dice: Carlyle filing discloses private equity IPO risks

By Guest Contributor
September 22, 2011
NEW YORK, Sept. 22 (Business Law Currents) - As a turbulent IPO market continues to flail, The Carlyle Group, one of the world’s great private equity houses, is going public. With $153 billion in assets under management (AUM), the guys at Carlyle are no dummies. So when so many companies are pulling back, why go public now? A look at Carlyle’s risk disclosures may yield some clues. The timing of the offering, while superficially curious, may at its core be linked to uncertainty over the partnership’s ability to maneuver in ever-shifting tax and regulatory regimes.

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Dead man walking: The FSA’s aggressive stance with financial services firms

By Guest Contributor
September 20, 2011

Pedestrians through Canary Wharf business districtBy Christopher Elias

LONDON, Sept. 20 (Business Law Currents) – If the death sentence of the UK’s Financial Services Authority (FSA) was to earn a last request then it may well have been to introduce a new era of aggressive enforcement as it prepares to hand over power to the Financial Conduct Authority (FCA).

Banker-author warns overseers to keep ‘extreme money’ in check

By Guest Contributor
September 19, 2011

By Stuart Gittleman and Emmanuel Olaoye

NEW YORK, Sept. 19 (Thomson Reuters Accelus) – The “extreme money” and “voodoo banking” that are dominating the global financial system are too smart, too fast, too greedy, too self-absorbed and far too dangerous for traditional legislation and regulation, a veteran banker told Thomson Reuters.