Everything you need to know about the AFM in 2015

Let’s face it, more oversight and regulation is here to stay and it will never, ever go away. And, it is not all necessarily bad. Apart from the obvious pain of lots of paperwork and extra costs, we can all agree that this sector needs more stability and above all, it needs to regain trust. In order for the sector to grow, to attract more money but also the ‘right’ kind of people to work in this industry we need to be trusted.

The AFM, the Dutch regulator, plays an important role here. The AFM is our gateway to the European regulatory institutions and the political processes that drive them. One of the things the AFM is seeking in this sector is more transparency. And, in an effort to set the right example, they’ve issued an agenda for 2015, outlining the focus points of their oversight for this year.

So, if you’re up for it; it is only 66 pages. Click here for the full document.

One of the things that the AFM will zero in on, according to BEURS.NL  is HFT. As part of their capital markets focus, they will investigate HFT in the Netherlands in the publish a report on this in the third quarter. Read that article here

Another report will be produced on the quality of the advice given to investors and the handling of previous scandals as can be read in this report from AMWEB.

And, especially accountants can expect a lot of visits from the people on the Vijzelgracht. As much as went wrong in the financial sector, the accountant always had your back or he actualy had no idea what he was accounting. That needs to change dramatically. Click here for the article from Accountantweek.

Prop Roundtable Paper

FOW organized an interesting roundtable discussion in the UK and published a PDF document. Interesting read. If you're familar with the industry, there is nothing new or shocking to discover but it would confirm what you probably already know; the nature of traders is changing to the 'nerdier' type (sorry boys), margins will remain thin, costs to enter, regulatory changes, and difficulty in clearing higher the barrier to enter, discouraging new blood into this industry.

Read the full article here 

Does HFT have a future?

If you're a fan of American tv-series, you will know that the US Patriot Act is often used as a sort of 'enabler' to get things done, bypassing the usual rules.

According to Craig Pirrong, professor at the University of Houston, the same thing could apply to the DoddFrank act and HFT. He feels that, regardless of actual argumentation or merits, the Act can be used to kill off HFT, just because HFT is of inconvenience to some.

Click here for his article and blog.

PWC study outlines growth and opportunities in the ETF market

No need to argue the growth that ETF's have made over the last years. According to a study from PWC, this growth will continue. PWC outline the opportunities for asset managers in this ever growing segment. The full article can be found in our studies section. Click on  the ETF section

UK 1 - ECB 0; Clearinghouses allowed to remain on an island

In a legal battle between the UK and the ECB, the European general court ruled in favor of the UK and annulled the location policy for Clearing Houses to handle Euro denominated transactions to be handled within the Eurozone. 

The policy, instituted four years ago, was never effected and now the UK can be certain that the city of London can remain Europe's financial center, housing clearing moguls like ICE Clear and LCH.Clearnet.

More info: http://www.ft.com/fastft/286422/uk-wins-court-battle-with-ecb-on-euro-clearing

Hibernia Project Express advancing steadily.

The new submarine cable between the US and the UK is progressing steadily and should be available summer 2015. This will reduce latency to the US. You can get updates on the progress via: http://go.hibernianetworks.com/project-express