Financial Regulatory Forum

Cybersecurity and the board of directors: avoiding personal liability – Part I of III

By Guest Contributor
July 25, 2013

By Steven L. Caponi, Contributing author for Compliance Complete

NEW YORK, July 25 (Thomson Reuters Accelus) - The likelihood of a cybersecurity breach hitting one’s company in the near future is as certain as will be the resulting drop in shareholder value, finger pointing, fines, regulatory headaches and civil litigation alleging the board was asleep at the wheel in the face of a known danger. In a letter to the Chairman of the Securities and Exchange Commission from five U.S. senators, including Commerce committee Chairman Jay Rockefeller, the Senators noted:

Cybersecurity in Canada: Finance industry, government seek ways to share data

By Guest Contributor
July 18, 2013

By Daniel Seleanu, Compliance Complete

TORONTO/NEW YORK, July 18 (Thomson Reuters Accelus) - More cooperation with government intelligence agencies would improve the Canadian financial industry’s cyber security capabilities, regulatory and industry experts told Thomson Reuters. Financial institutions have deployed defences, but face considerable threat from cyber-criminals intent on committing fraud, stealing sensitive information, and disrupting their networks.

Kill switches may be too difficult to implement despite new call by CFTC member, expert says

By Guest Contributor
October 17, 2012

By Emmanuel Olaoye, Compliance Complete

WASHINGTON, Oct. 17 (Thomson Reuters Accelus) - CFTC Commissioner Bart Chilton has called for high frequency traders, or “cheetahs” to face so-called kill switches that would shut down a broker dealer’s trading over erroneous orders or technology glitches. But a trading expert said the measure may be too difficult to implement in practice.

Financial cybercrime a national security threat, U.S. Justice Department official warns

By Guest Contributor
September 21, 2012

By Julie DiMauro and Stuart Gittleman

NEW YORK, Sept. 21 (Thomson Reuters Accelus) - U.S.-based financial services institutions that don’t tell law enforcement agencies about having been victimized by cybercrime are compromising the nation’s security as well as that of their firms, a top Department of Justice official warned this week.

Regulators globally seek to curb supercomputer trading glitches

By Guest Contributor
August 31, 2012

By Christopher Elias

LONDON, Aug. 31, (Business Law Currents) - A series of stock market glitches has prompted regulators around the world to introduce new regulations to limit the impact of computer malfunctions on trading. Shielding markets from another Knight Capital disaster, the new rules seek to defend market participants from malicious machines and risky robots. (more…)

Knight Capital crisis brings new push for rules on trading, technology, structure

By Guest Contributor
August 6, 2012

By Nick Paraskeva

NEW YORK, Aug. 6 (Thomson Reuters Accelus) - The near-collapse of equity market maker Knight Capital after sending erroneous trades to the New York Stock Exchange last week is the latest in a string of errors causing heavy losses and disrupting markets. While smaller in dollar terms than losses from JPMorgan’s ‘London whale’ or UBS’ rogue trader, it is causing regulators to review firms’ compliance and controls over operational risks, and rules for restructuring of equity markets.

Collateral management reform could herald benefits for risk managers

By Guest Contributor
July 30, 2012

By Rachel Wolcott

LONDON/NEW YORK, July 30 (Thomson Reuters Accelus) - Risk managers could benefit from the financial services industry’s revamp of collateral management services in preparation for the new regulatory requirements that will drive demand for high-quality collateral. New regulations for the clearing of over-the-counter (OTC) derivatives through central counterparties (CCPs) alone could increase demand for high-quality collateral to $2 trillion or more, according to some estimates. In response, some firms are aiming for a more universal approach to collateral management.

U.S. bank regulators warn on due diligence in using cloud computing services

By Guest Contributor
July 13, 2012

By Emmanuel Olaoye

WASHINGTON/NEW YORK, July 13 (Thomson Reuters Accelus) – Bank regulators this week raised their warnings to financial institutions on the dangers of using vendors that provide so-called “cloud computing” services.

IA brief: State regulator’s deficiency letter offers clues for social-media policies

By Guest Contributor
May 25, 2012

By Jason Wallace

NEW YORK, May 25 (Thomson Reuters Accelus) – A state regulator’s letter to an investment advisory firm outlining shortcomings in the firm’s use of social media also gives an early clue to how regulators will scrutinize the financial industry’s growing use of services like Facebook and LinkedIn.

Corporate governance: boardrooms fret over corporate espionage and federal guidance regimes

By Guest Contributor
March 12, 2012

By Alex Lee

(Business Law Currents) – Dodd-Frank related governance issues such as say-on-pay and proxy access have been well known focal points for boardrooms during the 2012 proxy and annual meeting season, but another issue has topped headlines and is of increasing concern to boardrooms: business intelligence gathering activities. Faced with shareholder oversight, the risks posed by private intelligence gathering firms and governmental regulation in this area, companies must ensure that they abide by accepted best practices, the highest ethical standards and standards for compliance with laws.