Week InReview

Worsening emerging market currency selloff sparks contagion fears

Friday | Sep 7, 2018
The U.S. government has changed its approach in pursuing spoofing cases by charging traders under a wire fraud statute, rather than using the Dodd-Frank Act, to have more time to build a case. But proving fraud, rather than spoofing, requires more evidence, and that might give traders incentive to continue aggressive trading. (The New York Times | Sep 4)

FINRA proposed higher position limits for ETF options contracts
The Financial Industry Regulatory Authority proposed raising position limits for several of the most frequently traded options contracts on exchange-traded funds. FINRA said the change, which is subject to Securities and Exchange Commission approval, would add depth to the market and would improve liquidity. (ThinkAdvisor | Sep 4)

Top U.S. regulator calls for 'reset' in relations with other countries
Commodity Futures Trading Commission Chairman J. Christopher Giancarlo plans to rethink regulation of cross-border swaps activity, saying the existing approach is too expansive, unduly complex and operationally impractical. A proposed approach would differentiate between changes that address cross-border systemic risk and changes that address market and trading practices, with the ability to tailor to jurisdictional trading conditions. (Reuters | Sep 4)
The Cyber Cafe
Cybersecurity news every Friday
Almost 400k websites risk hacking, data theft via open .git repos, researcher warns
Websites with misconfigured .git directories leave sensitive data including passwords and API keys exposed to hackers, says security researcher Vladimir Smitka. After scanning hundreds of millions of websites across the globe, Smitka discovered that nearly 400,000 featured open .git directories.
- ZDNet

Cybersecurity Roundtable: Chicago's tech experts answer 3 critical questions
Earlier this summer a group of security-minded executives in Chicago sat down for a panel discussion on anticipating and combatting cybercrime.
An 'expansive extraterritorial reach'
CFTC chair warns on EU clearing plans
(Sep 4) -- J. Christopher Giancarlo, chair of the Commodity Futures Trading Commission, the top U.S. derivatives regulator, warned the European Union against trying to impose control over U.S. clearinghouses, saying this would upend the derivatives market and years of cooperation. Some highlights from an article published in Eurofi Magazine:
  • The "expansive extraterritorial reach" of proposed changes to EU clearing rules is a cause of "deep concern."
  • Under the proposal, non-EU CCPs deemed systemically important to the bloc would face increased oversight by EU authorities. "Without some legal measure to ensure otherwise, this likely will result in conflict with how the CFTC regulates and supervises these CCPs."
  • Under the comparable compliance framework in the EU proposal, it's "far from certain" that EU authorities will "embrace deference and respect U.S. laws that have been customized to fit the needs of U.S. market participants."
  • "If such an approach is not followed, U.S. markets, in particular U.S. futures markets, will face harm. It should not be a surprise that the United States will not tolerate such disruption."
Fed-OCC plan to relax big-bank limits
Increases risk of failure: FDIC's Gruenberg
(Sep 6) -- U.S. regulators' proposal to reduce leverage limits at the largest banks would mean a "serious weakening of the post-crisis reforms," former Federal Deposit Insurance Corp. Chair Martin Gruenberg said at the Peterson Institute for International Economics in Washington. Letting lenders such as JPMorgan Chase & Co., Goldman Sachs Group Inc., Citigroup Inc. maintain billions less in capital "will increase the risk of financial counterparty runs, reduce their ability to absorb losses, make them less able to lend in an economic downturn, and increase their likelihood of failure," said Gruenberg, who remains on the FDIC board as the lone Democrat. The Federal Reserve and the Office of the Comptroller of the Currency in April proposed reducing required leverage ratio maintained by eight of the largest U.S. lenders, allowing them to rely more on borrowed money. Gruenberg, who has since been replaced as chair by Jelena McWilliams, refused to join in the proposed change, which would free up an estimated $121 billion in capital a the companies' banking units. McWilliams hasn't indicated whether she will sign on to the proposal.
Binge reading disorder
Hand-curated, chosen with love
When to trust a story that uses unnamed sources
A guide to unnamed sources in government / politics / Washington stories - who they are, how reporters use them, and how to tell if you should trust what they say.

25 of the new words Merriam-Webster will add to the dictionary in 2018.
Readers fluent in internet-speak will be familiar with many of the entries on the list, and there are also plenty of new words that are specific to the tech world. Not every word that's new to the dictionary is necessarily new to language; Merriam-Webster now includes some culinary terms that have been around for a while, and the new list also features abbreviations of common words.