Paul Tucker (right), the newly-appointed chair of the Systemic Risk Council, the U.S.-based lobbying group that campaigns on financial services regulation, has warned against complacency from the regulators now that the global financial crisis has passed its peak.
In an interview with the Financial Times, the former Bank of England deputy governor said he would use his new role to ensure policymakers’ determination to reform the financial system does not fade.
Tucker's experience in financial services regulation covers the peak of the financial crisis: He was Deputy Governor at the Bank of England from 2009 through 2013. He joined the Bank in 1980 and played a major role in many of the most significant developments in the international financial system. He also served as a member of the G20 Financial Stability Board Steering Committee and chaired the FSB’s group on resolving large and complex banks.
By Nathaniel Lalone, Katten Muchin Rosenman UK LLP
The European Securities and Markets Authority (ESMA) announced a new consultation to consider revisions to the regulatory technical standards (RTS) and implementing technical standards (ITS) for trade reporting under the European Market Infrastructure Directive (EMIR). The RTS and ITS were finalized in 2012 and 2013 at a time when, according to ESMA, “there was only limited practical experience with the reporting of derivatives.” Since then, reporting counterparties have identified a series of issues requiring further clarification.
"We didn't talk to Stephen Hester about data until the last two minutes," says RBS chief data officer
Data and regulation may be important issues for chief data officers to discuss with their boards, but a discussion panel at the recent FIMA Europe conference agreed that ‘data’ and ‘regulation’ should take a back seat in that conversation. Instead, CDOs need to communicate about ‘business outcomes’.
“The topic of data management is relatively complex to get across in a meaningful way to people who are not involved in the topic,” said Graham Smith (pictured), chief data officer at RBS.
Regulator's objectives frustrated by volume and quality of data but says recent ESMA consultation is "a good step"
The Financial Conduct Authority (FCA) says that it still has “a way to go” in developing the capabilities to use the huge amount of data generated by the EMIR trade reporting rules.
Speaking on a panel at the recent FIMA Europe conference, Tom Springbett (pictured), head of OTC derivatives and post-trade policy at the FCA, set out the regulator’s objectives with regard to OTC derivatives data but admitted, “We are still a fair way from achieving that. The quality of the data isn’t yet good enough.”
Regulators now fixing EMIR rules because “data stuff” didn’t get prominence it deserved - Data experts need to be "closely engaged"
The Financial Conduct Authority (FCA) has admitted at a conference for data managers that data issues did not get the consideration they deserved when trade reporting regulations were being drafted. Moreover, this failure is reflected in the recent decision by the European Securities and Markets Authority (ESMA) to consult on changes to the trade reporting rules under EMIR, the European Markets and Infrastructure Regulations.
ESMA said in its consultation: “The practical implementation of EMIR reporting showed some shortcomings and highlighted particular instances where improvements could usefully be made so that the EMIR reports better fulfil their objectives.”
Tom Springbett, head of the FCA’s OTC derivatives and post-trade policy, said in a discussion panel at the recent FIMA Europe conference that data professionals need to make sure they are “closely engaged” with regulators.
A case study presented at FIMA Europe showed how a rogue data code was a regulatory and a business issue
Determining the facts about an organisation’s data is essential to bring about a step change in data governance and to ensure compliance with the Basel Committee for Banking Supervision BCBS 239, Principles for Effective Risk Data Aggregation and Risk Reporting (PERDARR).
In a short anonymised case study about a bank credit risk modelling group, Jon Asprey, vice president strategic consulting at Harte-Hanks Trillium Software, told the recent FIMA Europe conference in London: “The regulator is guiding, cajoling, and moving you into the right place and really telling you the foundational capabilities, skills and processes they would expect you to have in place to manage your risk data effectively.”
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