Monday, November 8, 2021

Exposing the Rogue Traders

The Case for a Cross-Border Stock Loan Registry, Part II

Author: Ed Blount

Master Criminals don’t usually confess in public. If prosecutors’ charges are true, Sanjay Shah is the leading figure in the largest reported tax swindle in history. Yet, Mr. Shah, unbowed, pleading his case to reporters, has openly admitted to borrowing the assets of widows and orphans in one country to kick-start a pyramid scheme of dividend capture trades, so as to swindle widows and orphans in other countries. Mr. Shah’s attorneys argue that his trades were not illegal....

Comments (0)

Number of views (2823)

Full Article

Categories: All, Commentary, Cross-Post

Tags: ESMA, cross-border

Wednesday, June 2, 2021

Moving ESG Beyond Policy into Practice

Bankers Seek Common Ground with Politicians

Author: David Schwartz J.D. CPA

Accountability in voting is in the news, and nowhere more so than on Wall Street. Through their U.S. credit policy association and its Asian counterpart, Bankers have responded to suspicion among critics that problems abound in the murkiness of the proxy voting practices of asset managers for large pensions, mutual funds, and other institutional investors. With the launch of the "Global Framework for ESG and Securities Lending (GFESL)," the partnership by the two...

Comments (0)

Number of views (3746)

Full Article

Categories: All, Commentary

Tags: ESMA, cross-border, ESG

Saturday, May 22, 2021

Get Your ESG House in Order

Here Come the Regulators.

Author: David Schwartz J.D. CPA

Environmental, social, and governance (ESG) investing has taken global financial markets by storm over the last few years. Post-pandemic, the demand for ESG investments has only intensified and has proven to be much more durable than a fad. However, lack of consistency and transparency threatens the trustworthiness of ESG as a category, and has led to accusations of 'greenwashing.' As a result, US regulators and their counterparts in the EU and UK have begun building...

Comments (0)

Number of views (4350)

Full Article

Categories: All, Commentary, Formal Regulatory Remedies, Cross-Post

Tags: European Commission, ESMA, ESG

Tuesday, December 1, 2020

Banking Leaders set to Control 'Shadow Exposures'

Supply Chains in Securities Finance to be Clarified and Stabilized

Author: David Schwartz J.D. CPA

Shadow banking is history, say banking leaders, a thing of the past. New compliance and risk management systems based on the Securities Finance Transaction Regulation (SFTR) and the industry’s evolving Common Domain Model (CDM) will enable financial service providers to regulate their clients' exposure to counterparties with far more specificity than ever before possible. Originally accepted as a regulatory imposition, bankers are now viewing the SFTR reports of their loan...

Comments (0)

Number of views (4692)

Full Article

Categories: Commentary, Cross-Post

Tags: innovation, ESMA, Counterparty, Financial Innovation, Blockchain, DLT, ESG

Wednesday, September 30, 2020

Alarm Raised on Stock Loans for "Withholding Tax Schemes”

Findings Point to a New Role for Emerging Fintech

Author: David Schwartz J.D. CPA

European commissioners are reviewing a study from their securities and market authority (ESMA) that includes a recommendation for new laws to combat unfair trading practices and an extended remit for National Competent Authorities (NCAs) to conduct snap audits of securities loans and transactors. Loans deemed to be suspicious would prompt an inquiry to determine penalties for unfair strategies and inappropriate beneficiaries. However, useful audit results may be doubtful based on our...

Comments (0)

Number of views (6516)

Full Article

Categories: All, Commentary, Cross-Post

Tags: securities lending, innovation, datasets, ESMA, cross-border, Empty Voting, Financial Innovation, Blockchain, DLT, RMA

Commentary

Exposing the Rogue Traders

The Case for a Cross-Border Stock Loan Registry, Part II

Moving ESG Beyond Policy into Practice

Bankers Seek Common Ground with Politicians

Get Your ESG House in Order

Here Come the Regulators.

Banking Leaders set to Control 'Shadow Exposures'

Supply Chains in Securities Finance to be Clarified and Stabilized

Alarm Raised on Stock Loans for "Withholding Tax Schemes”

Findings Point to a New Role for Emerging Fintech

Journal Commentaries

Keep Regulation Functional (October 2008)

The Bear Market Posse, or Counterparty Risk Management during the Recent Turmoil (Sept. 2008)

Searching for New Paradigms at BIS (July 2008)

Will Basel II Affect The Competitive Landscape? (September 2003)