In a letter dated January 31, 2017, Vice Chairman of the House Financial Services Committee Rep. Patrick McHenry (R-NC) called on Federal Reserve Chair Janet Yellen to cease negotiating "binding" international financial regulatory standards in such forums as the Financial Stability Board, the Basel Committee, and the International Association of Insurance Supervisors "until President Trump has had an opportunity to nominate and appoint officials that prioritize America's best interests.” 

“Fintech,” or financial technology," is a term that seems to be on everyone's lips these days, from bankers to global finance ministers.  Dramatic advances in computing power, speed, interoperability, and nearly instantaneous internet communication are changing the ways banks, brokers, and other financial institutions relate to their customers, investors, regulators, and each other. But what do these changes mean to the future of financial markets and regulation?  In February 2017, the International Organization of Securities Commissions (IOSCO) published a document that ambitiously charts the bewildering array of fintech innovations and describes how these innovations are beginning to intersect with securities markets regulation. Based on industry surveys, the report looks at the most important technological innovations affecting global finance and makes some observations about regulatory responses.

In dual releases published on January 25, 2017, the Financial Stability Board (FSB) expressed concern that re-use of collateral and re-hypothecation of client assets may pose financial stability issues. The financial crisis demonstrated that collateral re-use and re-hypothecation can transmit and amplify shocks to financial markets. While regulators have responded and prime brokers and clients have improved their risk management and practices since the crisis, the FSB has formulated recommendations to address residual financial stability risks associated with collateral re-use. In these releases, the FSB finalizes its data collection plans, and also explores whether uniform implementation of its recommendations is truly necessary, or whether a more flexible principles-base approach might be more effective.