IOSCO issues final report on order routing incentives. The International Organization of Securities Commissions released its final report on order routing incentives, which reviews the practices used by market regulators regarding incentives for order routing that may influence how intermediaries treat their clients. (6/19/2017) IOSCO press release.
IOSCO report on the regulation of wholesale market conduct. IOSCO published a report that examines the tools and approaches used by market regulators to minimize misconduct risk arising from the particular characteristics of wholesale markets, such as a decentralized market structure; opacity; conflicts of interest involving market makers; size and organizational complexity of market participants; and increasing automation. (6/13/2017) IOSCO press release.
FSB’s Asia group considers cybersecurity and governance frameworks at meeting. The Financial Stability Board summarized the discussions of its Regional Consultative Group for Asia at its meeting on June 9, 2017. Among other matters, the Asia RCG discussed the impact of US interest rate normalization, global political developments and capital flows in Asia; regulatory approaches to cybersecurity and information sharing; and the use of governance frameworks to address misconduct risk in the financial sector. (6/9/2017) FSB press release.
Basel Committee issues new FAQs on Liquidity Coverage Ratio. The Basel Committee on Banking Supervision published a second set of frequently asked questions on Basel III's Liquidity Coverage Ratio. (6/8/2017) BIS press release.
Basel Committee clarifies rules on combating money laundering and terrorist financing in correspondent banking. The Basel Committee published revised guidance for banks conducting correspondent banking business on managing risks related to money laundering and the financing of terrorism. The revised guidance, which appears in two annexes to the guidelines on the Sound management of risks related to money laundering and financing of terrorism, includes a list of risk indicators that correspondent banks should consider in their risk assessment of money laundering and financing of terrorism associated with correspondent banking. (6/7/2017) BIS press release.