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UK Toughens Remuneration Rules

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UK Toughens Remuneration Rules – Profit & Loss (free story)
The UK’s Prudential Regulatory Authority (PRA) and Financial Conduct Authority (FCA) have jointly released tougher rules on remuneration in financial services, including an extension of the period during which bonuses can be clawed back. “Today’s rules are part of a wider package that is being announced over the summer to embed an accountable culture in the City,” says Martin Wheatley, CEO of the FCA. “Our rules will now mean that senior managers face claw back of bonuses for up to 10 years, if misconduct comes to light.”

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Is the FX Industry Set for a Period of Consolidation?

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Is the FX Industry Set for a Period of Consolidation? – Profit & Loss (subscription)
With rumours swirling around about a number of multi-dealer platforms that could be up for sale, it may be that the FX industry is now set for a period of consolidation. A number of platforms launched in 2012 are nearing the end of their three-year funding plans and have reached a “sink or swim” moment. The regulatory landscape is beginning to change the market and therefore enticing new players into the industry and BATS Global Market’s acquisition of Hotspot has shaken things up in the platform space. All of which could cause a perfect storm that ends in consolidation. But which platforms could be up for sale and who are the potential buyers?
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Fines Aren’t Enough for Fair Markets: Minouche Shafik

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Fines Aren’t Enough for Fair Markets: Minouche Shafik – Wall Street Journal (subscription)
High-profile enforcement actions have resulted in very significant penalties for firms across a wide range of markets, amounting to more than $150 billion since 2009. These fines demonstrate that conduct that undermines the integrity of financial markets won’t be tolerated by regulators, and have no doubt had a deterrent effect. Fines have also focused the attention of corporate boards and shareholders on the seriousness of conduct issues within their firms. But fines alone aren’t enough.
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FXPA Responds to FEMR’s Final Report

The Foreign Exchange Professionals Association (FXPA) supports the Final Report published by the Fair and Effective Markets Review (FEMR) today, which sets out 21 recommendations to help restore trust in the wholesale Fixed Income, Currency and Commodity (FICC) markets.

“FEMR’s Final Report provides a framework to move the FX industry towards a series of generally accepted standards globally. FEMR has taken an important and thoughtful step forward, one that has clearly been made after considerable consultation with a wide selection of market participants,” says FXPA. “The FXPA was formed to allow for a dialogue across a diverse group of market participants. We hope to be a useful partner in formulating solutions that will restore trust in the FX market, and advance a sound, liquid, transparent and competitive global currency market.”

“FXPA believes regulation must be coordinated so as to minimize chances of regulatory arbitrage. The FEMR recommendations around FX provide a foundation for a global conversation among all market participants toward this goal,” FXPA continues.

The Review was established by the Chancellor of the Exchequer and Governor of the Bank of England to help to restore trust in those markets in the wake of a number of recent high profile abuses.