Category: Banking Operations
The risks involved in securities settlement and custodial services
Court verdict on Wells Fargo’s securities lending programme A federal court jury in Minnesota has rejected an $8.2m claim by Blue Cross Blue Shield of Minnesota and other institutional investors that Wells Fargo & Co misrepresented a securities lending programme as safe. Under the program, Wells Fargo held its clients’ securities in custodial accounts and […]
As electronics become ever more sophisticated, financial institutions have to remain vigilant if they are to stay one step ahead of potential fraudsters. To this end the United Bank for Africa (UBA) has established a security operations centre (SOC) in Lagos. The centre, which is designed to cover electronic transactions in Nigeria and the 18 […]
When Operational Risk becomes a way of life
In a timely reminder that we can never become complacent about the consequences of operational risk the UK’s Serious Fraud Office has announced that two brokers have been charged with conspiracy to defraud in connection with the rigging of LIBOR rates. The LIBOR story which has already seen some banks face hefty fines is a […]
Boost to the Triparty Repo Settlement Interoperability
The ICMA European Repo Council has signed a memorandum of understanding with Clearstream, Euroclear and Eurex Clearing, which engages those providers in a joint project focusing on increasing the efficiency of the repo market. Through this agreement Eurex Clearing will be able to extend the connected settlement locations for its secured market pooling with Clearstream to […]
Shining the spotlight on Corporate Governance
IFSB (the Islamic Financial Services Board) and INCEIF (The Global University of Islamic Finance) have just announced the confirmed speakers for their second Executive Forum on Islamic Finance. Entitled “Towards Strengthening Corporate and Sharī`ah Governance in Islamic Banks” the forum is being held in Kuala Lumpur, Malaysia on 26-27 August. Speakers for the event include […]
EU policy makers are closer to agree on securities settlement rules
European policy makers are increasingly confident that regulations for Europe’s €800tn securities settlement market will be finalised and passed into law by the end of the year. The new rules governing region’s central securities depositories aim at creating better competition between national entities and cut cross-border settlement costs. The ECB is planning to make operational the Target2Securities (T2S), […]
The key steps in clearing and settlement of the securities trade
By Stanley Epstein We have all been concerned these past few years about the ongoing financial crisis which erupted so suddenly and devastatingly in the middle of 2008. Much concern has been expressed regarding maintaining financial stability. One of the many ways of doing this is by strengthening the financial infrastructure, both at a domestic […]
Why Managing Operational Risk is so important?
By Stanley Epstein One of the most misunderstood terms, especially when one relates it to banking, is that little word “risk”. Banks, like any other firms or even individuals are exposed to many different forms of risk. This short article will explain what risk is and some of the different types of risk that banks […]