Subbu Loganathan

GM HODL folks! 👋🏼 Proper taxonomy and classification of digital assets is essentially the first steps towards ensuring effective regulation of the industry. 👀 Earlier this year, the CFTC's Global Markets Advisory Council (GMAC) Subcommittee released comprehensive recommendations with the intention of providing structure to the digital asset space. This emphasizes the need for consistent terminology to enhance regulatory oversight and create a supportive environment. In HODL's latest article, Shasank Konger helps us uncover how these efforts aim to synchronize regulatory understanding, tackle the unique challenges of the technology, and uphold market integrity. Read more about this proactive stance in the full article here 👉 https://lnkd.in/g5BuUNSn

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🔴 UK government approach to tokenisation and regulation The Treasury has published Tulip Siddiq’s keynote address at last week’s Tokenisation Summit. 💡 HIGHLIGHTS 👉 Financial services sector at the centre of the economic vision, and plan for economic growth. 👉 We need to lean in to the emerging and disruptive technologies. 👉The transformative potential of DLT is clear, whether you are talking about cryptoassets, or how it might revolutionize traditional markets. 💡DIGITAL ASSETS 👉Ambition to make the UK a global hub for securities tokenisation. 👉 Digital Securities Sandbox will help adoption of DLT across capital markets. 👉 Government will issue a Digital Gilt Instrument- ‘DIGIT’.  👉 Other work includes the Digital Assets Bill, that clarifies the law around property in relation to digital assets, and work looking at innovation in areas such as funds, by the Technology Working Group established by the Asset Management Taskforce. 💡 THE BIG PICTURE 👉 Cryptoassets are here to stay. 👉 It is important that we don’t see traditional financial services and cryptoassets as separate islands with no means of crossing between. 👉 Traditional finance and cryptoassets have the potential to play an integrated role in each other’s future, to their mutual advantage. 👉 E.g. tokenisation of securities could facilitate ‘atomic settlement’, where payment for a security and its transfer of ownership happen simultaneously. 👉 Today the only meaningful proposition for such a settlement function is stablecoins. However, in future this role could also potentially be fulfilled in future by tokenised versions of central bank or commercial bank money. 💡 CRYPTOASSET REGULATION 👉 Last year, the Treasury published proposals for the financial services regulation of cryptoassets in the UK. 👉 These proposals still stand, and the government intends to implement them in full. 👉 The Treasury had also set out details for the treatment of fiat-referenced stablecoins as a distinct asset class. 👉The government intends to proceed with the new regulated activities for stablecoins, which will be implemented to the same timetable as the rest of the regulatory regime for cryptoassets.  👉 The government does not intend to bring stablecoin into UK payments regulation at this time.  👉 Aim to engage firms on draft legal provisions for the cryptoasset regime including stablecoins as early as possible next year. 👉 Previous uncertainty over whether cryptoasset staking services constitute a Collective Investment Scheme under financial services law - it doesn’t make sense for staking services to have this treatment. The Government intends to proceed with removing this legal uncertainty. If we are going to unlock the best of what tokenisation, blockchain technology, and cryptoassets have to offer, we need to facilitate the opportunities for traditional markets and cryptoassets to succeed to their mutual benefit. Thoughts? #innovation #tokenisation #stablecoins #staking

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ICMA - International Capital Market Association publishes its semi-annual report that provides detailed data on EU and UK sovereign bond market trading activity. Previous versions of this report included both sovereign and corporate analysis. Following readers’ input and feedback, the report will now be published in two different editions: ✳️ A sovereign edition (this report) ✳️ A corporate edition (to follow) One of the core objectives of MiFID II/MiFIR was to provide greater public transparency of secondary trading activity in the EU and UK markets. As solutions have evolved to consolidate the disperse sources of public data, ICMA has sought to leverage the capabilities of such initiatives to provide a detailed and holistic view of bond market activity in the EU and UK. It is estimated that the report captures more than 80% of all secondary bond market transactions reported in the EU and UK and is therefore relatively representative of the aggregated bond market data as reported under the MiFID II/MiFIR obligation. This report, which follows the report published for H2 2023, provides 30 months of bond market data, covering the period January 2022 through to June 2024. ICMA believes that this latest data set provides a more accurate representation than the previous report. ICMA commits to updating this report on a semi-annual basis in order to be able to track long-term trends in secondary bond market structure and activity. ICMA also expects that in time both the depth and quality of the underlying data will improve, particularly as reports such as this seek to present a definitive picture of the European bond markets. #ICMA #secondarymarket #trading #fixedincome #bonds #data #mifid

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Funds distributions channels After recently addressing the FCA initiative on tokenasation, and noting it's potential edge towards distribution, #efama shared a report stating that "Open architecture fund platforms, offering access to a diverse array of funds from various fund managers, have a modest market share in Europe and the European Union (10% and 8%, respectively), but they exhibit greater presence in Norway and Sweden, with market shares of 24% and 19%." adding that "Looking ahead, survey participants anticipate an increase in the market share of open architecture fund platforms and financial advisers over the next five years. Financial technology is expected to be the primary driver of the evolution of the fund distribution landscape." https://lnkd.in/dUNvv6JH

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IOSCO Offers ‘Toolkits’ to Address Changing Nature of Exchange Models New report offers recommendations to help regulators improve supervision of exchanges, which are becoming increasingly global and venturing into non-traditional services. International Organization of Securities Commissions - IOSCO https://lnkd.in/dy83GDeS

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Join tomorrow's CQF information session to find out more about the globally recognized designation and get all your questions answered by the CQF Managing Director. Register now: https://ow.ly/6g8L50TayfW #CQF #quant #finance #quantfinance #quantitativefinance #career #machinelearning #datascience

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FCA fines Citi £27million for failures in its trading systems and controls. "In total US$1.4bn of equities were sold across European exchanges, before the trader cancelled the order. This coincided with a material short-term drop in some European indices which lasted a few minutes. " Having robust Systems and Controls in place is a topic that Qomply routinely comments upon. https://lnkd.in/eceKKCJw In this instance, a trader fat-fingered an order resulting in a $444Billion order being created that should have been blocked yet resulted in a partial order of $189Billion being executed and moving the market . https://lnkd.in/e78f7HkJ

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CySEC has withdrawn IFCM Cyprus’ license following the company’s voluntary renouncement. This update underscores: 🔹 Adherence to regulatory frameworks. 🔹 Adjustments in IFCM’s operational strategies. A notable development in Cyprus’ financial and regulatory landscape. https://lnkd.in/erKP94Rj 📊 #CySEC #ForexNews #Regulation #FinanceMagnates

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IOSCO outlines market outages best practices The International Organisation of Securities Commissions (#IOSCO) has outlined a number of good practices for mitigating the effects of market outages. #markets #outages #trading #venues #GlobalTrading https://hubs.li/Q02Bwpvc0

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The #UK needs a new Digital Finance Agency (DFA) to lead in digital financial innovation, argues Gilbert Verdian, Founder and CEO of Quant. The DFA would provide regulatory clarity for #digitalassets and drive modernisation in the financial sector. Currently, the Financial Conduct Authority (FCA) is overburdened, focusing on consumer protection, leaving a gap in innovation. Establishing a DFA could harness #London’s unique talent pool and maintain the UK's leadership in #digitalfinance. Read the full article from Ledger Insights here 👉 https://buff.ly/3WVpz91

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The final rules are effective 60 days after publication in the Federal Register. Reporting firms must comply with the final rules two years after publication in the Federal Register. Stay informed and compliant with regulatory changes! For detailed assistance or specific inquiries, reach out to our legal or compliance experts at [email protected]. Learn more about how Denolus Consulting can support your compliance journey by visiting us at https://Denolus.com. AIFMD | CASS | CFTC Rewrite | Disclosure Reports | EMIR Refit | FATCA | Form CPO | Form PF | Form 13F | SEC Forms | MiFID | MMF Reporting | UCITS Reporting | Other Transaction & OTC Derivatives Reporting #Compliance #Governance #Management #RegulatoryInteglligence #Leadership #Innovation #HedgeFunds #PrivateEquity #ESGreporting #AlternativeInvestments #Sustainability #Futurism #SocialMedia #ESMA #FCA #SEC #CFTC #MAS #HKMA #SFC #ASIC

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Interesting update on the CTP from Dan Barnes at The DESK "Three firms have confirmed they will compete to be consolidated tape providers (CTPs) for UK and European capital markets, with another three uncommitted and two erstwhile providers now ruling themselves out of the race." Our focus is to provide the technology, leveraging our existing infrastructure. "TransFICC is looking to join a consortium while providing the technology for the CT alongside partner firms that can manage compliance and governance." https://lnkd.in/e2CuJyEr #consolidatedtape #ctp #fixedincome #fintech

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Interesting update from Sarah Breeden, BoE Deputy Governor at IFGS; Feedback on the proposed regulations for systemic stablecoins highlighted the impact that the lack of renumeration from the necessary central bank-held reserves would have on business models. Sarah highlighted the issuer returns could come from the provision of "payment rails and ancillary services", which may be a challenge to put it mildly, but doesn't this risk limiting innovation, market development and competition in the fast-evolving digital money landscape ? Or pushing more digital money flows to unregulated offshore stablecoins? Or even worse, giving the false impression of reducing adoption risks for a future CBDC?  #ifgs #cbdc #stablecoins

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ESMA asks for input on assets eligible for UCITS. LSEG (London Stock Exchange Group). In May, the European Securities and Markets Authority (ESMA) published its long-awaited call for evidence on the review of the UCITS Eligible Assets Directive (EAD). 🔗 Read the full article on Investment IQ: https://lnkd.in/ena6uugr #investing #assetmanagement #wealthmanagement #finance

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ESMA asks for input on assets eligible for UCITS. LSEG (London Stock Exchange Group). In May, the European Securities and Markets Authority (ESMA) published its long-awaited call for evidence on the review of the UCITS Eligible Assets Directive (EAD). 🔗 Read the full article on Investment IQ: https://lnkd.in/ena6uugr #investing #assetmanagement #wealthmanagement #finance

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