• Derivatives reforms coming into force: On 1 January 2016, the Financial Market Infrastructure Act (FMIA) came into force. This is the framework act which introduces derivatives reforms broadly similar to many provisions in the EU’s EMIR and MiFID II legislation (as well as the US Dodd-Frank Act). The Federal Council Ordinance and the Financial Market Infrastructure Ordinance of the Financial Market Supervisory Authority (FINMA) also came into force on 1 January 2016, and set out in more detail those FMIA requirements that will apply to derivatives, such as trade reporting, central clearing, and risk mitigation. Requirements will be phased in from July 2016 onwards or, in the case of reporting, once a trade repository has been authorised or recognised. Under the FMIA, the position limits regime and obligation to trade certain derivatives on regulated venues will not apply until later, at least until the EU and other jurisdictions adopt equivalent requirements.
  • FINMA bans former bank employees: On 17 December 2015 FINMA issued industry bans of between one and five years against the former global trading heads and four traders in UBS’ foreign exchange and precious metals business. FINMA’s investigations found the individuals had engaged in or encouraged improper behaviour, acted against the interest of clients and repeatedly attempted to manipulate foreign exchange benchmarks.