New Japanese module added to ISDA Resolution Stay Jurisdictional Modular Protocol. The International Swaps and Derivatives Association launched a Japanese jurisdictional module to the ISDA Resolution Stay Jurisdictional Modular Protocol to assist market participants in complying with amended guidelines regarding contractual stays in financial contracts governed by non-Japanese law, which will become effective on April 1, 2017. (1/5/2017) ISDA press release.
OTC Derivatives Compliance Calendar. ISDA updated its OTC Derivatives Compliance Calendar. (12/27/2016) OTC Derivatives Compliance Calendar.
FSB finishes peer review of Japan. The Financial Stability Board published the results of its peer review of Japan, which examined macroprudential policy framework and the framework for resolution of financial institutions. The peer review found that Japanese authorities have made progress on both subjects in recent years and recommended areas for improvement related to both topics. (12/21/2016) FSB press release.
IOSCO report recommends monitoring of the use of automated investment advice tools. The International Organization of Securities Commissions published a report on the use of automated advice tools by intermediaries and retail investors, which found that the expanded use of these tools requires ongoing monitoring by regulators to assess how they are impacting the investment advice received by retail clients. (12/21/2016) IOSCO press release.
IOSCO seeks input on how order routing incentives influence intermediaries’ treatment of clients. IOSCO requested comments on a consultative report that examines the regulatory conduct requirements for brokers or firms to manage conflicts of interest associated with routing orders and obtaining best execution in an effort to determine whether order routing incentives influence the behavior of intermediaries towards their clients. Comments are due on or before February 21, 2017. (12/21/2016) IOSCO press release.
IOSCO report examines risks of OTC leveraged products to retail investors. IOSCO published a report that analyzes offers of rolling-spot forex contracts, contracts for differences and binary options to retail investors to determine the risks related to the marketing and sale of these products to retail investors and the response of regulators. (12/21/2016) IOSCO press release.
Basel Committee proposes new guidance on applying banking supervision principles to institutions engaged in financial inclusion. The Basel Committee on Banking Supervision published a consultative document that proposes additional guidance on the application of the Committee’s Core principles for effective banking supervision to the supervision of financial institutions engaged in serving the financially unserved and underserved. Comments are due on or before March 31, 2017. (12/21/2016) BIS press release.
FSB proposes guidance to support resolution planning and promote resolvability. The FSB requested comments on two proposals for guidance on the implementation of its resolution standards which form part of the overall policy framework to end “too-big-to-fail.” One proposes a set of guiding principles to support the implementation of the internal TLAC requirement, while the other proposes guidance to address the risk of a bank in resolution being unable to maintain access to the clearing, payment, settlement and custody services provided by FMIs that are necessary to continue the provision of a firm’s critical functions in resolution. Comments on both consultative documents are due on or before February 10, 2017. (12/16/2016) FSB press release.
IOSCO guidance seeks to improve quality of reporting on compliance with Benchmarks Principles. IOSCO published new guidance that establishes its expectations about the level of detail that should be included in statements of compliance with the IOSCO Principles for Financial Benchmarks, which are required to be completed by Benchmark Administrators. (12/16/2016) IOSCO press release.