August 2023 Highlights
FIA leaders on top priorities for FIA, proposed capital requirements in the US, and a new report on non-default losses at CCPs
Viewpoint on top issues driving FIA's work in the second half of 2023
In his latest Viewpoint column, FIA President & CEO?Walt Lukken ?highlights top issues driving FIA's work in the second half of 2023.
"There will always be new disruptions and innovations. It's important to reflect on the past, however, to remind ourselves of the core values that drive us forward as well as the areas where we can improve.?So in case you've already forgotten, here are some important developments from the first half of the year – and more importantly, how they will shape FIA's work going forward."?
Read Walt's full Viewpoint discussing FIA's Cyber Risk Taskforce, the UK-EU relationship, DMIST, digital assets and more as we look to the future.
Latest G-SIB capital proposal poses challenges?
FIA's Chief Operating Officer Jacqueline Mesa sat down with?Risk.net 's?Luke Clancy ?to discuss the challenges related to the latest Global Systemically Important Banks (G-SIBs) proposal:
Following the global financial crisis, the G20 wanted over-the-counter trades to be cleared. Jackie Mesa, chief operating officer of the Futures Industry Association, believes the Fed’s latest proposal could have a “detrimental impact on that regulatory goal”.
The FIA plans to collect data from its members and says the aggregate impact in 2023 is bound to be larger than $10 billion as the magnitude of clearing has risen significantly over the past six years. “That is a ‘put you out of business’ kind of capital raising,” says Mesa. “It is huge. It’s problematic.” Client clearing is already a “constrained business” and not one that banks are obliged to offer.
IOSCO and BIS report highlights need for guidance on non-default losses
FIA senior director of CCP risk and banking capital Doanh Le Ngoc made it clear that FIA welcomes the?Bank for International Settlements – BIS ?and?International Organization of Securities Commissions (IOSCO) ?report on non-default losses (NDLs) practices by central counterparties.
The report provides a foundation for discussions among regulators, CCPs, and clearing members, acknowledging the potential need for additional guidance and for CCPs to have adequate risk management frameworks to handle NDLs, including cyber-attacks. The regulators plan to launch further consultations on this topic, recognizing the importance of updated guidance. The upcoming consultation aims to gather insights from industry stakeholders for possible recommendations.
Enforcement Trends and Greenwood Project on MarketVoice
CFTC enforcement trends: 3 key issues
The?U.S. Commodity Futures Trading Commission 's Division of Enforcement is having another busy year, says Foley & Lardner LLP 's?Ellen Wheeler .
Key areas of focus for the agency are likely to be related to unapproved communications, registration issues and carbon markets, she says in an interview with FIA's MarketVoice .
CFTC's Johnson offers advice to Greenwood Project scholars
FIA hosted Commissioner?Kristin Johnson ?of the?U.S. Commodity Futures Trading Commission ?for a discussion with?Greenwood Project high school scholars.
Executive director of the Greenwood Project,?Kwesi Smith, CFA , facilitated the conversation on navigating the financial services industry, building a strong foundation and diversity through sponsorship. Read the full summary here .
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FIA Data
Trends in ETD Trading Q2 2023
FIA's Will Acworth provided #insights into which parts of the global listed derivatives markets have grown the most in Q1 and Q2.
Highlights:?
?? Global volume experienced major growth from last year and most of that growth is coming from the Asia-Pacific region.??
?? Separately, half of all open interest in the industry is in the North American clearinghouses.?
?? Equity had the largest share of overall growth with approximately 78% of total volume and 66% of global open interest.?
Watch the full #data webinar on Trends in ETD Trading Q2 2023 here .?
Other FIA News?
What's Next??
FIA Futures & Options Expo Conference?- 1 Month Away!
Get ready for #FIAExpo 2023 because we are one month out! Join us on 2-3 October back at the Sheraton Grand Chicago Riverwalk for FIA Expo 2023 and Register here . PLUS join us as this year's selected #fintech startups participate in FIA's annual Innovators Pavilion & Pitch Competition and compete for our Innovator of the Year award ???
Stay Connected?
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Thank you for an insight packed discussion with?our Greenwood Project high school scholars! #GreenwoodProject