It's been an interesting week, with much of it spent focused upon the trading community at TradeTech in Paris. Here are the key stories of the week:
- HSBC's David Bagley on the G20, Turner and Compliance
- US Q1 Bank Results: Just a Blip?
- FSA Liquidity Reporting to cost up to £2 billion
- Lower latency in the trading room
- Order routers not providing Best Execution
- Some creativity in UK finance from Barclaycard
- A Blankety-Blank Cheque Book and Pen!
- Bank avoids job hunters
- Fred Goodwin is now with Nomura
- PayPal's mobile glitch
- US releases stress test process
Our major stories of the week include:
HSBC's David Bagley on the G20, Turner and Compliance
David Bagley, Global Head of Compliance for HSBC, addressed the Financial Services Club last week around the implications of the G20 Summit in London, the announcements of the Financial Stability Board and other global supervisory changes, and what they all mean for a bank’s compliance team.
US Q1 Bank Results: Just a Blip?
So we've seen major US banks announcing great results in the last week with Citi dropping in with $1.6 billion after almost two years of losses; JPMorgan $2.1 billion; Goldman $1.8 billion; Wells Fargo (reporting Wednesday 22nd) expected to post $3 billion; and Bank of America reporting $4.2 billion profits at lunchtime today. Now everything in the garden is rosy, isn't it? No.
FSA Liquidity Reporting to cost up to £2 billion
PJ Di Giammarino, Chair of our Capital Markets Chamber, concludes that the FSA's latest "Strengthening Liquidity Standards 2" suggests that the 661 firms who are significantly affected by these requirements will need to devote resources to change their systems and hire more staff to cope with the new requirements. Total cost? About £2 billion.
Lower Latency in the trading room
An excellent panel discussion between Larry Tabb, CEO of TABB Group; Donal Byrne, CEO of Crovil; and Stephane Leroy, Head of Global Sales & Marketing at the Quant House; about the implications of lower latency order routing in the trading rooms of the investment markets.
Order routers not providing Best Execution
The latest results of liquidity movements in Europe’s
trading rooms from CEO of Chi-x, Mark Howarth, who outlined their
success in the last few month along with the other new alternative exchanges - the Multilateral Trading Facilities (MTFs) – that have emerged in Europe as a result of the Markets in Financial Instruments (MiFID) implementation. Bottom-line: price discovery is lacking best execution as the MTFs are not seeing the levels of liquidity movement that should have been delivered, as yet.
Other key stories included:
- Some creativity in UK finance from Barclaycard
- A Blankety-Blank Cheque Book and Pen!
- Bank avoids job hunters
- Fred Goodwin is now with Nomura
- PayPal's mobile glitch
- US releases stress test process
For those who might have missed it, readers were invited to the European Finance Convention on 19th and 20th May 2009 in Lisbon and to share a drink with Gerard Hartsink on 27th April at the London Financial Services Club.
Meanwhile, things we're reading today include:
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Predicting Bank Stress Test Results (Business Week)
The Financial Crisis: An Inside View (Brookings papers, 52 page pdf)
Virtual Worlds and Web merging (BBC)
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Rest of the week's reading:
Chris M Skinner
Chris Skinner is best known as an independent commentator on the financial markets through his blog, TheFinanser.com, as author of the bestselling book Digital Bank, and Chair of the European networking forum the Financial Services Club. He has been voted one of the most influential people in banking by The Financial Brand (as well as one of the best blogs), a FinTech Titan (Next Bank), one of the Fintech Leaders you need to follow (City AM, Deluxe and Jax Finance), as well as one of the Top 40 most influential people in financial technology by the Wall Street Journal's Financial News. To learn more click here...
