FRTB - Precursors for compliance
ICE LIBOR Position Paper II
FRTB - Compliance and Beyond
EURIBOR Reforms
MIFID II - Commodity Derivatives
 

From Partner's Desk

An undeniable result of the multiple waves of regulatory machinations for the past decade in the financial benchmark landscape is the renewed urgency for the revival of a robust and resilient financial markets. The reform activities undertaken by authorities across globe bear a testimony to this. And this is the need of the hour too. The bruises of post-crisis era are yet to be healed completely with regulators doling out fines and penalties even today while banks and financial institutions make business-altering choices while parrying such blows. If only we take a moment to pause and mull on this, one thing becomes increasingly clear - Prevention is Better than Cure.

 

The long standing lapse in transparently regulating the financial benchmark structures are being attenuated by air-tight regulatory agenda. The sole focus is shifting towards investor protection. The outline of such regulatory agenda can be viewed as multi-pronged. It involves:

  1. Strengthening the Existing Benchmarks - By deriving the rates from eligible underlying transactions

  2. Finding Alternative Rates - Which are risk-free or nearly risk-free and stand as true reflections of the underlying markets they represent

  3. Establishing an Overarching and Comprehensive Regulation for Financial Benchmarks as a whole

 

What does this mean for all the stakeholders of financial benchmark structures? A robust and resilient financial system for all the consumers of the benchmarks is manifest. This is the indisputable central agenda behind the reforms. For the financial institutions involved in the process of determination of the benchmark rates however, there is work to be done on multiple fronts to ensure compliance. This, we believe, is an opportunity rather than overhead. An opportunity to overhaul the existing processes, systems, governance structures, reporting layers and control frameworks. A potent investment for the future which will result in robust financial markets and organization growth. 

 

We, at ACAPM, believe that such an opportunity must be dealt with sufficient preparation to ensure success. Our focus is in providing a strategic advantage to banks across the regulatory compliance lifecycle though a combination of specialised expertise and cutting-edge solutions. We are proud to say that the mantra at ACAPM is to ensure accelerated and complete compliance in financial benchmarks, for therein lies the success of banks and financial system as a whole.

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