Week InReview

Dialing back financial regulation

Senate moves to limit strict Fed oversight, and stress tests, to the 12 biggest banks

Mitsubishi UFJ  tries to get regulated by kinder, gentler  OCC

DOJ probe into Russian laundering goes quiet
Fri Nov 17, 2017
Let's recap
In case you missed it . . .
Wall Street has new MiFID migraine, this time in futures market
The latest complication is in the multi-trillion-dollar futures and derivatives markets;  may force brokers who facilitate futures transactions to register as commodity trading advisers - a label that brings unwanted regulatory burdens  (Nov 17)

The delay pending at OMB applies to individual remedies, but Labor will use its authority to enforce best-interest standard, secretary says (Nov 15)

The Hindenburg meets the Titanic: stocks are flashing an ominous signal not seen since the financial crisis
We have not seen a "leadership reversal", a "Hindenburg Omen" and a "Titanic Syndrome signal" all appear simultaneously since just before the last financial crisis (Nov 14)

IMF says Europe's recovery is spilling over to the rest of the world
Improved prospects account for bulk of global-growth revision; Euro-area dispersion of growth lowest in two decades, IMF says (Nov 13)

SEC is said to prepare easier path for new ETFs
Jay Clayton, Securities and Exchange Commission chair, is working to streamline the agency's ad hoc approach to approving new exchange-traded funds, putting a spotlight on an issue that has vexed the regulator for a decade (Nov 10)
The Cyber Cafe
Cybersecurity news every Friday
SEC says companies can expect new guidelines on reporting cybersecurity breaches
Agency will probably update directions that it gave to companies more than six years ago.

Companies turn to war games to spot scarce cybersecuirty talent
Realistic scenarios help wannabe cybersecurity experts strut their stuff.

Schneier: It's time to regulate IoT to improve cybersecurity
In a keynote at the SecTor security conference, Bruce Schneier makes a case for more regulatory oversight for software and the Internet of Things.
CFTC weighs swaps rules revamp
More principle, less prescription
(Nov 13) -- The Commodity Futures Trading Commission is considering revising the rules that govern swap trading platforms in order to make them more principles-based and less "prescriptive and inflexible,"  CFTC chair J. Christopher Giancarlo said at an industry gathering in Singapore. The CFTC should have followed the clear intent of the Dodd-Frank Act, allowing so-called swap execution facilities to decide their own business models, and enhancing professionalism through licensing, testing, and industry codes of conduct, Giancarlo said.
Order-routing conflicts
FINRA to review inducements
(Nov 13) --  Financial Industry Regulatory Authority , the brokerage industry's self-regulatory organization, will review order-routing inducements to see how they might affect how and where a broker-dealer firm transmits securities orders for execution. In a Targeted Examination Letter, FINRA asked member firms a number of questions, including how they "quantify the benefits, if any" from the receipt of payments for order flow, maker-taker rebates, and other inducements. Results of the inquiry will help FINRA decide whether additional steps are required.
Binge reading disorder
Hand-curated, chosen with love.
10 finance books worth reading this winter
Some suggestions, if you're having trouble deciding what to do when it's cold outside.

The risk of estimating risk
Ultimately, the rationale for practicing some risk-management analysis is bound up with the empirical fact that market history repeats, albeit without a pre-determined time table.

Passive investing is a 'chaotic system' that could be dangerous, warns Robert Shiller
One of the country's greatest economic minds is questioning the value and role passive investing is playing in the bull market.