Banks’ risk management technology spending to reach $74bn by 2015
November 8, 2011 - Technology investments in risk management infrastructure by banks will reach $74 billion by 2015, a report has revealed. A study by IDC Financial Insights showed that growth in risk management spending will be faster than the total amount of investment in technology within the financial services sector.
CFTC and SEC Approve Confidential Private Fund Risk Reporting
October 31, 2011 - The Commodity Futures Trading Commission (CFTC) today approved a final rule requiring certain advisors to private funds that are dually registered with the CFTC and the Securities and Exchange Commission (SEC) to report information to the SEC for use by the Financial Stability Oversight Council (FSOC) in monitoring risks to the U.S. financial system. The SEC approved the joint rule on October 26, 2011.
UBS admits to breakdown in risk control systems
October 25, 2011 - In the wake of its recent $2.3 billion loss through unauthorised trading, Swiss bank UBS has admitted that internal controls were "not effective".Today UBS posted a third quarter net profit of $1.1 billion, down 39% on the same period the previous year, after the scandal allegedly involving London-based trader Kweku Adoboli.
Nine out of 10 Bankers Not Confident over Stress Testing
October 25, 2011 - Sybase, Inc., an SAP company (NYSE: SAP) and industry leader in enterprise and mobile software, today announced results of a survey showing that more than nine out of 10 capital markets executives lack confidence in bank stress testing, while more than 75 percent are struggling to capture trading system data.
Social media reputation damage high on risk managers’ list of concerns
October 25, 2011 - Social media and the potential they pose to reputation risk and protection of confidential information are significant risks to European businesses, according to a survey by the Federation of European Risk Management Associations in cooperation with the Institute of Risk Management (IRM).
Moody's Analytics Launches Enhanced Probability of Default For Banks Dealing with Basel III
October 17, 2011 - Moody's Analytics, a leader in credit risk measurement and management, today announced Through-the-Cycle EDF™ (Expected Default Frequency) measure, a quantitatively derived credit risk estimate that dampens the short-term volatility arising from the aggregate credit cycle, providing more stable default probabilities than traditional point-in-time (PIT) credit risk estimates.
SEC Sanctions Direct Edge Electronic Exchanges and Orders Remedial Measures to Strengthen Systems and Controls
October 13, 2011 - The Securities and Exchange Commission today sanctioned two electronic stock exchanges and a broker-dealer owned by Direct Edge Holdings LLC for violations of U.S. securities laws arising out of weak internal controls that resulted in millions of dollars in trading losses and a systems outage.
Thomson Reuters Survey Finds Hedge Funds Require Flexible Technology to Meet Regulatory Overhaul
October 11, 2011 - Thomson Reuters today announced the results of a survey on the impact of managing risk and compliance in response to new regulations. The survey, carried out during a Thomson Reuters Forum held in September, polled over 90 members of the buy-side trading community on the need for hedge fund managers to establish institutional quality compliance programs to attract investors.
