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- Issue #3 - CFTC, ISDA, Basel Committee, IIF, HSBC, BNY, State Street, T+1
Issue #3 - CFTC, ISDA, Basel Committee, IIF, HSBC, BNY, State Street, T+1
Your weekly global custody news and insights direct to your inbox.
Global Custody Pro
October 04, 2024 • Time To Read: 5 minutes
Good morning!
Welcome to Global Custody Pro – we're thrilled to have you on board! Our mission is to be your guide through the fascinating world of global custody, clearing, payments, and digital assets. We know it's a complex field with a lot to keep track of, so we've made it our job to sift through numerous sources and bring you the most important updates.
Think of us as your friendly neighborhood expert, always ready to break down the latest developments in a way that's easy to digest. We're here to help you stay informed and ahead of the curve, without getting bogged down in information overload.
Table of Contents
🌏 Global Custody News
Clear Street has completed its acquisition of the Fox River algorithmic trading business from Instinet. In July, Clear Street appointed former CBOE Global Markets CEO Edward Tilly as President. LINK
Barclays has settled for USD$4mn with the CFTC for swap reporting violations. According to the order, from 2018 through 2023, Barclays failed to correctly report, or failed to timely report, millions of swap transactions in violation of the Commodities Exchange Act and CFTC regulations. LINK
ISDA says that proportionality is needed in counterparty risk reforms in its response to the Basel Committee proposed guidelines with the IIF. They highlight the challenges in obtaining some of the private information proposed to form part of the guidelines. LINK
Asset Servicing Times reports that HSBC has announced it will exit South Africa and transfer its branch business to First Rand Bank. Global equities and securities financing activities will be supported by ABSA. LINK
23 separate entities settled USD$3.8mn in fines with the SEC in September for non-compliance with these beneficial ownership and insider transaction reporting and disclosure rules. LINK
Following on from the above story, law firm Alston & Bird highlight the importance of maintaining accurate records of beneficial ownership to comply with US rules and file accurate 13D, 13G and 13F reporting. LINK
The United Kingdom’s T+1 Accelerated Settlement Taskforce Technical Group published its draft recommendations and report for how the UK can migrate to T+1 settlement. KPMG is acting as secretariat. LINK
Finops Info reports that BNY kept sharing data with affiliates after CIBC Mellon acquisition, and lost a Canadian court case to SS&C. This highlights the complexity and risks of managing market data contract compliance. LINK
🎶 People News
Euroclear has named Philippe Laurensy as CEO of Asia Pacific markets. He was most recently Head of Product, Strategy & Innovation for the Euroclear group. LINK
State Street has appointed Vanessa Fernandes as Head of Digital Assets. She was previously Managing Director and Global Head of Digital Experience at BNY Mellon. Before that she held several senior leadership roles at Itaú Unibanco. LINK
🚀 Digital Asset News
Deloitte have an interesting sponsored article in the Wall Street Journal exploring the potential of asset tokenization. They highlight the potential opportunities and efficiencies possible, but note the need for more regulatory clarity and cash on-chain to avoid the risk of “big islands” that don’t inter-operate. LINK
The SEC settled for USD$225k with former RIA Galois Capital Management LLC for custody rule violations following its use of FTX to hold client assets. The SEC order found that Galois violated the Custody Rule by failing to maintain certain crypto-assets of the Fund with a qualified custodian. LINK
📈 Chart of the Week
The growth in market cap of alternative asset managers since 2014 is well ahead of other financials categories. The below chart is from Apollo’s investor day presentation this week.
