FSOC Designates AIG and GECC as Nonbank Financial Companies

FSOC Designates AIG and GECC as Nonbank Financial Companies
by Steve Quinlivan | July 9, 2013


FSOC has designated the following as nonbank financial companies:

American International Group, Inc
General Electric Capital Corporation, Inc
Under Section 113 of the Dodd-Frank Act, the Council is authorized to determine that a nonbank financial company’s material financial distress—or the nature, scope, size, scale, concentration, interconnectedness, or mix of its activities—could pose a threat to U.S. financial stability. Such companies will be subject to consolidated supervision by the Federal Reserve and enhanced prudential standards.

Check dodd-frank.com frequently for updated information on the JOBS Act, the Dodd-Frank Act and other important securities law matters.

BNY Mellon launches Form PF reporting solution

Related fund data links BNY Mellon Asset Manageme…

via Pocket http://www.hedgeweek.com/2013/06/28/186638/bny-mellon-launches-form-pf-reporting-solution July 01, 2013 at 06:45PM

2013 SEC OFFICE OF MINORITY AND WOMEN INCLUSION per Dodd Frank Sectiopn 342 (e)

2013 SEC OFFICE OF MINORITY AND WOMEN INCLUSION per Dodd Frank Sectiopn 342 (e)


As required by Section 342 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010

3, the Office of Minority and Women Inclusion (OMWI) is responsible for

all matters related to diversity in management, employment and business activities at the SEC. The SEC established its OMWI office in July 2011

4 and began the hiring process for a permanent OMWI Director soon thereafter. The permanent OMWI Director, selected in December 2011, officially joined the agency in January 2012.

The OMWI Director is responsible for developing standards for equal employment opportunity and diversity of the workforce and senior management of the SEC, the increased participation of minority-owned and women-owned businesses (MWOBs)

5 in the SEC’s programs and contracts, and assessing the diversity policies and practices of entities regulated by the SEC.6 The OMWI Director is also required to advise the Commission on the impact of the SEC’s policies and regulations on MWOBs.7

As required by Section 342(e), OMWI must submit an annual report to Congress that includes the following:


• a statement of the total amounts paid to contractors during the reporting period;


• the percentage of the amounts paid to contractors that were paid to minority-owned and women-owned businesses;


• the successes achieved and challenges faced by the agency in operating minority and women outreach programs;


• the challenges the agency may face in hiring qualified minority and women employees and contracting with qualified minority-owned and women-owned businesses; and,


• any other information, findings, conclusions, and recommendations for legislative or agency action, as the OMWI Director determines appropriate.


Unless otherwise noted, this annual report covers Section 342-related activities at the SEC for the fiscal year ended September 30, 2012.



Javelin OTC Derivatives Establishes Presence in Telx’s Chicago Data Center

Javelin OTC Derivatives Establishes Presence in Telx’s Chicago Data Center


Telx, a leading provider of global interconnectivity, cloud enablement services and datacenter solutions, today announced at SIFMA Tech 2013 that Javelin Capital Markets, an OTC derivatives execution platform, has leveraged Telx’s network & interconnection rich Cloud Connection Center, “CHI1” at 350 East Cermak Road, Chicago, Illinois, providing Javelin with access to Telx’s extensive Financial Services community. As a colocation and interconnection client in Telx’s strategically located data center in downtown Chicago, Javelin can now offer Telx’s financial community high-performance connectivity to derivatives execution platforms for Interest Rate Swaps and Credit Default Swaps. Javelin offers both anonymous electronic and voice-hybrid methodologies for trade execution.

Newly formed Swaps Execution Facilities (SEFs), that have emerged as aspects of Dodd-Frank become implemented, are incorporating their services in secure data center environments. Low-latency connectivity is a critical component for the OTC Derivatives market linking SEFs and Central Counterparty Clearing (CCPs). With CCPs being located in Chicago, the proximity of Telx’s CHI1 facility at 350 East Cermak provides financial customers with high-performance and flexible connectivity to Javelin as well as to other SEF engines from a single location.

“As aspects of Dodd-Frank become cemented in the financial community, the need to establish SEFs in secure environments is a crucial step for our eventual classification as a Swap Exchange Facility,” said Michael Black, MD of Infrastructure of Javelin. “Telx’s ability to provide us with access in their premier Chicago facility, and their proximity to the clearing venues, swaps execution facilities, and buy-side participants put us in a strong market-leading position to service current and future clients.”

“We are excited to have Javelin join the expanding Telx financial ecosystem in our CHI1 facility. Javelin’s secure exchange platform with a state of the art user interface is well positioned in the rapidly changing OTC Derivatives market,” said Shawn Kaplan, general manager of Financial Services for Telx. “In recent months we have seen an increasing number of trading systems turn to Telx and our CHI1 facility, most recently with the announcement of Sky Road joining Telx’s financial community. Javelin and other industry leading financial institutions at 350 East Cermak benefit by connecting with other financial institutions in the facility, which allows them to offer their full suite of services with flexible connectivity to current and future clients.”

Telx’s CHI1 facility, located in the South Loop of the Chicago Central Business District, provides customers with the financial eco-system at 350 Cermak, one of the leading financial eco-systems in the world. As the operators of the “Meet-Me-Room,” and one of the largest colocation providers at the CHI1 facility at 350 Cermak, Telx provides industry leading data center and connectivity services for the global financial community.

Attendees at SIFMA Tech 2013 in New York City can register to attend Telx’s grand opening event of its new flagship data center, NJR3 in Clifton, New Jersey on June 19, 2013 from 3:00 p.m. to 7:00 p.m. Round-trip transportation will be provided by Telx for all registered guests. The event will feature a keynote address by NFL Legend Phil Simms, along with public remarks Clifton Mayor James Anzaldi, State Senator Nia Gill, and Telx’s Executive Vice President of Engineering and Construction Michael Terlizzi. Cocktails and refreshments will be served, and tours of the new data center will be given.


Eagle Addresses Regulation with LEI, Cleared Swaps Support

Eagle Addresses Regulation with LEI, Cleared Swaps Support


Eagle Investment Systems (Eagle), a leading provider of financial services technology and a subsidiary of BNY Mellon, announced that the most recent release of its portfolio management platform supports regulation for legal entity identifier (“LEI”) and recent cleared swap requirements from the Dodd-Frank legislation.

The LEI initiative has designed a standard universal identifier for organizations involved in financial transactions. Required for regulatory reporting and global efficiency, the industry is now implementing these standardized legal entity identifiers. By adopting LEI, organizations are achieving increased efficiencies in managing entity data and measuring and managing risk. Eagle is helping firms meet this requirement by enabling them to store, analyze and report LEI for a variety of legal entities such as issuers, counterparties, brokers, exchanges and depositories.

As a result of Dodd-Frank legislation, mandates are now requiring swaps transactions to clear through exchanges to help reduce counterparty risk and bring transparency to the over-the-counter (OTC) derivatives market. Through its integrated portfolio management suite, Eagle has streamlined the processing of cleared swaps for clients through enhanced software that now captures and calculates specific deal information.

“Eagle is committed to staying abreast of regulatory changes to help our clients adapt to shifting markets and remain focused on growing their assets,” said John Lehner, president and CEO of Eagle. “We continue to make substantial investments in our products to help simplify risk management and reporting requirements for clients.”

Eagle is hosting an industry webcast, “A 360° View of LEI” at 11:00 a.m. EDT on May 15, where a panel of industry thought leaders will discuss the evolution of LEI and what companies need to consider to meet this regulatory reporting requirement.

Eagle is committed to helping financial institutions worldwide grow assets efficiently with its innovative portfolio management suite of data management, investment accounting and performance measurement solutions that are delivered over its secure private cloud, Eagle ACCESSSM. Since 1989, Eagle has deployed trusted solutions and services that create operational efficiencies and help reduce complexity and risk.

BNY Mellon’s Asset Servicing business supports institutional investors in today’s fast-evolving markets, safeguarding assets and enhancing the management and administration of client investments through services that process, monitor and measure data from around the world. We leverage our global footprint and local expertise to deliver insight and solutions across every stage of the investment lifecycle.

BNY Mellon is a global investments company dedicated to helping its clients manage and service their financial assets throughout the investment lifecycle. Whether providing financial services for institutions, corporations or individual investors, BNY Mellon delivers informed investment management and investment services in 36 countries and more than 100 markets. As of March 31, 2013, BNY Mellon had $26.3 trillion in assets under custody and/or administration and $1.4 trillion in assets under management. BNY Mellon can act as a single point of contact for clients looking to create, trade, hold, manage, service, distribute or restructure investments. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation.


Etrali Trading Solutions expands mobile recording offering for Dodd Frank compliance in the US

Etrali Trading Solutions, the leader in voice and electronic trading infrastructure and services for the trading communities, and its mobile technology partner, Natterbox, today announced the expansion of its mobile recording solution for the US.

via Pocket http://www.bobsguide.com//guide/news/2013/Jun/17/etrali-trading-solutions-expands-mobile-recording-offering-for-dodd-frank-compliance-in-the-us.html June 17, 2013 at 01:40PM

NICE launches first automated communications surveillance system

NICE launches first automated communications surveillance system


Solution offers compliance management system to address requirements under the Dodd Frank Act

Ra’Anana, Israel – NICE Systems has introduced its Proactive Compliance Solution for Trading Floors, which enables financial institutions to monitor and investigate trade interactions.

Aiming to facilitate compliance with regulatory requirements, such as the Dodd Frank Act that mandate a complete audit trail for conducting comprehensive and accurate trade reconstructions, the solution uses analytics technology to identify infractions, detect and mitigate risk, and manage day-to-day compliance.

“The Dodd-Frank Act is generating a storm of new regulations globally that forces trading floors to look for advanced solutions for proactive compliance,” said Yochai Rozenblat, President of the NICE Customer Interactions Group. “NICE’s innovative technology offers valuable cross-channel insights that enable financial organizations to makes sense of the vast amount of information exchanged during trade communications in order to more effectively manage compliance.”

The NICE Proactive Compliance solution for trading floors combines NICE’s speech analytics technology with Attivio’s Active Intelligence Engine, to deliver near real-time insights on all interactions occurring across trade communications. If an infraction takes place, the system automatically generates an alert. The information gathered can also be leveraged by organizations to analyze and understand emerging risks in order to help prevent infractions from occurring in the future.

The solution also includes the indexing of all interactions, including calls, emails, and chats, as well as an intelligent investigation processes that automatically highlights compliance risks within these multi-channel communications. Using these capabilities, organizations can easily filter and search through every type of interaction in order to reconstruct trades for investigation and audit when necessary.

Report highlights cost to the buy side in new era of swap trading

Report highlights cost to the buy side in new era of swap trading


First Published 5th June 2013

A study by Sapient Global Markets illustrated the cost of the central clearing mandate under Dodd-Frank.

Days before a wide array of entities are set to begin mandatory clearing for swaps, a study by Sapient Global Markets highlighted the cost of how the requirement can eat away at investment performance and pointed to standardised, centrally cleared contracts as the cheapest way to hedge.

“The drop in return ranges from between ~0.20% to ~0.62% for cleared hedges, up to almost 1.00% for traditional uncleared bilateral over-the-counter (OTC) trades,” Sapient said in a news release on its report.

From June 10, investment funds, non-swap dealer financial institutions, insurers and securitisation vehicles will be required to centrally clear certain swap trades. This followed the March 11 start of mandated clearing for certain interest rate swap and credit default swap trades for swap dealers, major swap participants and active funds.

The study compared the overall portfolio performance of a typical fixed-income fund using four different hedging instruments over a fixed historical period: uncleared swaps subject to pre-2008 margin requirements; uncleared swaps subject to the Basel Committee on Banking Supervision (BCBS) and International Organization of Securities Commissions (IOSCO) guidelines for margining (effective after 2015); swaps cleared through LCH.Clearnet SwapClear; and Eris Standard swap-futures (cleared through CME).

“Because of the significant impact on performance these results demonstrate, as well as the June 10th timeline set by regulators, it is apparent that portfolio managers must examine their own hedging strategy based on expected cost of clearing with a renewed urgency,” said Ben Larah, manager, Sapient Global Markets.

“Once the post-Dodd-Frank and BCBS/IOSCO recommended treatment for uncleared derivatives takes effect, using standardised and centrally cleared instruments will be the cheapest available option,” Larah said.

The results of the study show that cumulative portfolio returns are highest when hedging is performed using uncleared swaps in a pre-2008 environment, and lowest when hedging is performed using uncleared swaps in a BCBS/IOSCO recommended environment. Sapient said these results showed the significance of the impact of Dodd-Frank/BCBS legislation on clearing costs; once the BCBS/IOSCO recommendations take effect the use of customized, uncleared swaps will jump from being the cheapest way to the most expensive way to hedge.

Sapient Global Markets said it conducted this study with support from LCH Clearnet and Eris Exchange. LCH.Clearnet SwapClear provided access to the LCH.Clearnet SMART Tool and Eris Exchange provided the initial margin percentages for the Eris Standard contracts.

MarketAxess adds CDS data to BondTicker

Trading platform and technology provider MarketAxess has added live intra-day data for credit default swaps (CDS) to its BondTicker data service.

via Pocket http://www.thetradenews.com/USA_news/Operations___Technology/MarketAxess_adds_CDS_data_to_BondTicker.aspx June 04, 2013 at 07:12PM

Eris tweaks swap futures to attract buy-side flow

US futures market Eris Exchange, one of three US exchange operators that championed swap futures last year, has reduced the notional size of the instruments by 90% ahead of next week’s swap clearing mandate.

via Pocket http://www.thetradenews.com/USA_news/Asset_Classes/Eris_tweaks_swap_futures_to_attract_buy-side_flow.aspx June 04, 2013 at 07:09PM

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