Week InReview

Will a Robot Take My Job?
The second of [UBS's] new systems uses machine learning to develop new strategies for trading volatility on behalf of clients. It examines vast amounts of trading data and builds a strategy based on learning from market patterns.  UBS claims it is the first "adaptive strategy" product offered by an investment bank. It has been marketing the offering to clients for a couple of months and they have been "very receptive". While the bank is yet to convince a client to put its money into it, it expects to secure its first contract within a few months.
Fri Jul 7, 2017
Let's recap
In case you missed it . . .
CFTC effort will seek to standardize data sent to repositories; agency looks to fix problems stemming from lack of guidance (Jul 6)

Liquidity mismatches are one of the key emerging risks to global financial stability according to Financial Stability Board chair Mark Carney (Jul 5)

E-commerce and cybersecurity remain priorities for G20 leaders
G-20 summit likely to include discussion of digital economy, cybersecurity; may provide chance to push online commerce harmonization goals (Jul 5)

DOL defends fiduciary rule, drops anti-arbitration condition
The DOL urges federal appeals court to uphold fiduciary rule; agency won't defend anymore the rule's anti-arbitration condition (Jul 5)

Gone but not forgotten: traders brace for volatility return
Central banks in tightening mode seen as trigger for swings; ETPs show traders are more long than short volatility (Jul 5)
The Cyber Cafe
Cybersecurity news every Friday.
These are the good ol' days of cybersecurity
It doesn't get easier from here...

UN report shows the whole world needs a cybersecurity upgrade
Major cyber-readiness gaps remain between nations, but nearly all countries need major improvements.
- Inc.

The new cyber risk requirements
Despite a plethora of loose industry frameworks and a flurry of rule-making, large financial services firms in the United States essentially operate without any risk standards in place for cybersecurity.
Regulators boost clearinghouse scrutiny
Could solution become new threat?
(Jul 5) -- Global regulators published new guidance on the oversight of derivatives clearinghouses to ensure they are resilient enough to weather a future crisis and have adequate plans to recover or be wound down. As part of a G20 effort, the International Organization of Securities Commissions (IOSCO), the Financial Stability Board, the Committee on Payments and Market Infrastructures (CPMI), and the Basel Committee on Banking Supervision released a study that includes standards for risk management and financial resources, guidelines to recover losses and liquidity, and resolution procedures. The work will continue until the end of 2018, when the group will determine if more guidance is necessary.
MetLife asks court for another delay
Will wait for Treasury SIFI report.
(Jul 6) -- MetLife Inc. has asked a federal appeals court for time to wait for a mid-October Treasury report addressing the Financial Oversight Council's authority and metrics for designating nonbank companies systemically important. According to MetLife's renewed motion "t he report may prompt the government to change its positions on one or more issues in this appeal or to abandon the appeal altogether. At a minimum, the report may materially inform this Court's consideration of the issues on appeal."
G-SIBs' internal TLAC
FSB issues revised principles.
(Jul 6) -- The Financial Stability Board has issued guidance to help global systemically important banks' prepare for a possible collapse and deal with failure "in an orderly manner." The rules would prevent conflict between international banks' home regulators and authorities in their host countries. And i nvestors, rather than taxpayers, would foot the bill.  "This should diminish any incentives on the part of host authorities to ring-fence assets domestically," the FSB said. "Host authorities must have confidence that there is sufficient loss-absorbing and recapitalization capacity available to subsidiaries in their jurisdictions with legal certainty at the point of entry into resolution."
Binge reading disorder
Hand-curated, chosen with love.
Power causes brain damage
How leaders lose mental capacities - most notably for reading other people - that were essential to their rise.

The untold story of how Gary Cohn fell for Donald Trump
As Goldman Sachs's long-suffering No 2., Cohn approached his board about his future. He didn't get the answer he wanted. And then Jared Kushner swooped in. This is how Goldman Sachs took over the White House.

German investigators in possession of Panama Papers, aim to prosecute tax cheats
Germany's federal investigators have paid up to 5 million euros for the trove of documents at the center of the so-called Panama Papers leak. While controversial, the purchase of stolen bank data is legal.