Week InReview

The Smell of Fear  | Global cybersecurity company Kaspersky Lab partnered with U.K. fashion/lifestyle blogger Scarlett London to create a perfume line they hope will serve as a symbolic reminder of the dangers that lurk in cyberspace. Threat de Toilette - with versions such as Social Enginoir, Mal-wear, and Phish -  contains all the perfectly coded base notes of cybercrime, hints of spam, and drops of ransomware.
Fri Mar 17, 2017
Let's recap
In case you missed it . . .

FSB chief urges G20 to boost regulatory cooperation; incomplete standards could fragment funding, liquidity pools (Mar 17)

G20 checks in for detox as Germany seeks backing for free trade
Finance chiefs gather on March 17-18 in Baden-Baden, Germany; currency, trade and regulation likely to be flash points (Mar 15)

Fund managers seen cutting $300 million on external research
Greenwich survey assesses impact of EU rules starting January; U.S. firms with European units seen adopting global standards (Mar 14)

Trump's trade ethos to be challenged at G20 talks
Finance ministers aim to pull US away from protectionism and back to the mainstream (Mar 13)

Regulatory easing will not kill off financial risk model makers
There are plenty of factors to suggest risk management will remain a priority (Mar 13)
The Cyber Cafe
Cybersecurity news every Friday
Cybersecurity in seven minutes
A recent survey from the Pew Research Center found that just 12 percent of Americans use a password manager, and only 3 percent use it regularly - even though that's how security pros recommend everyone keep track of passwords. It takes time and effort to stay on top of best security practices, so all too often, people cut corners

What the CIA WikiLeaks dump tells us: encryption works
Documents purportedly outlining a massive CIA surveillance program suggest that CIA agents must go to great lengths to circumvent encryption they can't break. In many cases, physical presence is required to carry off these targeted attacks.

Report: 48% more IT professionals are taking security training
As cyber attacks continue to make headlines, more IT professionals are undergoing security training and assessments, paid for by their employers, according to a new report
Two-day trade settlement rule
SEC to consider the 'no-brainer'
(Mar 16) -- The Securities and Exchange Commission will have an open meeting on Wednesday, Mar. 22 to vote on adopting a rule that would shorten the current three-day  time frame to settle trades.  The rule would require parties to most trades to settle them within two days of the transactions-a period called T+2.  Under the proposal, the regulation wouldn't apply to money market funds, options and some other assets, which follow a T+1 settlement time frame. It also would exempt government and municipal securities.
Shadow banking risks to lenders
Basel proposes guidance
(Mar 15) -- The Basel Committee on Banking Supervision proposed guidelines to identify risks to lenders that stem from shadow-banking entities. The g uidelines lay out a framework to identify and manage potential problems at shadow banks from spilling over to banks, as well as identify and manage step-in risk "If not appropriately anticipated, the materialization of step-in risk could erode a bank's capital and liquidity position," according to the Basel Committee. The g uidelines don't entail automatic capital or liquidity charges to manage problem in addition to existing Basel Committee standards. "Rather, the framework makes use of existing prudential tools by informing or supplementing them," the Basel Committee said.
Is liquidity dropping
... making FX markets vulnerable to flash events?
(Mar 14) -- Currency market participants express concern that liquidity is declining and may be exacerbating flash events, the Bank for International Settlements said in a report on foreign-exchange liquidity in the Americas. "Changes in liquidity provision by traditional market-makers, fragmentation and technology, may have contributed to FX markets' increased susceptibility to periodic episodes of illiquidity during periods of stress."  At least 16 metrics are used to measure liquidity, according to survey of central bankers and market participants. Algorithmic trading strategies enhance liquidity during normal market conditions, while adding volatility in stressed periods, the BIS said, citing views of some market participants; and f ines and regulation have reduced incentives for bank dealers to engage in discretionary risk trading. Technological advances have lowered transaction costs, but may have contributed to market fragmentation, the BIS said.
Binge reading disorder
Hand-curated, chosen with love
Asset manager deal wave has just begun
Unrelenting pressure on active managers means firms will keep feeling pressure to combine

Uncommon Sense: 3 signals to gauge the bull market's longevity
Many investors are pondering the stock market's outlook and asking, "Is this as good as it gets?"
- Forbes

Someone wants to stick a fork in bitcoin's blockchain
The digital currency is resistant to change. Some users don't like that