Newsfeed

On 16 January 2025, the United States Securities and Exchange Commission (US SEC) announced the departure of YJ Fischer, Director of the Office of International Affairs (OIA). YJ Fischer, who has led the OIA since August 2021, will leave her position on 20 January 2025. YJ Fischer brought two decades of experience in complex international negotiations to the US SEC, including roles in both public and private sectors. During the Obama administration, she served at the US State Department, leading initiatives such as salvaging critical infrastructure in Iraq, participating in UN-led negotiations on the Syrian conflict, and contributing to the implementation of the Iran nuclear agreement. In the private sector, Fischer worked on global policy at YouTube, facilitated market entry for start-ups, and secured multimillion-dollar government R&D investments. Before joining the US SEC, YJ Fischer practised law at Kirkland & Ellis, earning recognition for her pro bono work. Her academic...

On 16 January 2025, the United States Securities and Exchange Commission (US SEC) announced order instituting administrative and cease-and-desist proceedings, pursuant to section 21c of the United States Securities Exchange Act of 1934 and sections 203(e) and 203(k) of the United States Investment Advisers Act of 1940, making findings, and imposing remedial sanctions and a cease and-desist order and settled charges against Two Sigma Investments LP and Two Sigma Advisers LP (collectively, Two Sigma) for breaching fiduciary duties and failing to address known vulnerabilities in their investment models. The firms also faced charges for violating whistleblower protection rules. As part of the settlement, Two Sigma agreed to pay $90 million in civil penalties and voluntarily reimbursed $165 million to impacted funds and accounts. The US SEC’s findings revealed that from March 2019 to October 2023, Two Sigma was aware of material vulnerabilities in its algorithmic investment models but...

On 16 January 2025, the Australian Securities and Investments Commission (ASIC) announced the appointment of Scott Gregson as its new Chief Executive Officer, effective 17 March 2025. Gregson, who brings nearly three decades of regulatory and enforcement experience from the Australian Competition and Consumer Commission (ACCC), will succeed retiring interim CEO Greg Yanco. ASIC Chair Joe Longo praised Gregson’s extensive background and leadership qualities, stated: "Scott is an impressive leader and will bring extensive experience to this important role, his commitment to achieving regulatory outcomes that benefit all Australians makes him a strong addition to support ASIC’s commission and head the agency’s executive leadership team." Mr. Scott Gregson’s appointment comes during a pivotal phase in ASIC’s transformation, which began three years ago and has seen the organisation undergo its most significant structural redesign in 15 years. Recent additions to ASIC’s leadership team...

On 13 January 2025, the Swiss Financial Market Supervisory Authority (FINMA) released updated guidance on reporting requirements for collective investment schemes (CIS). This guidance note by FINMA’s Asset Management division, provides detailed instructions for financial intermediaries on how to report data related to investment funds, including liquidity, leverage, and counterparty risks, as part of an annual supervisory framework. The guidance aims to enhance systemic risk identification and improve oversight of fund management practices. The updated rules apply to all Swiss funds with net assets exceeding CHF 500 million and foreign funds managed by Swiss entities meeting the same threshold. These funds must provide detailed reporting, focusing on funds employing alternative investment strategies such as hedge funds, private equity funds, and commodity funds. Smaller funds below the CHF 500 million threshold are excluded from the reporting requirements. The reporting obligations...

On 2 January 2025, Latvia's central bank, Latvijas Banka, officially began accepting applications for the EU Markets in Crypto-Assets (MiCA) licence. This development follows the implementation of the MiCA Regulation on 30 December 2024, establishing a unified legal framework for the crypto-asset industry across the European Union. Latvijas Banka is offering free pre-licensing consultations to crypto-asset service providers, providing expert guidance on application viability, regulatory compliance, and documentation readiness. These consultations aim to minimise service downtime and accelerate the path to market. Crypto-asset service providers seeking an EU-wide licence can benefit from Latvijas Banka's framework, with a competitive supervision fee structure. Approved entities will pay a 0.6% supervision fee, with a minimum of €3,000 annually, and gain the ability to passport services across EU member states. Latvia also provides a supportive ecosystem for fintech companies,...

On 16 January 2025, Gary Gensler, Chair of the United States Securities and Exchange Commission (US SEC), released the final episode of his Office Hours series. In this candid video, Gary Gensler discussed the importance of the US capital markets, the US SEC’s role in protecting investors, and the broader significance of public service. Chair Gary Gensler began by explaining the vast influence of US capital markets, which, at $120 trillion, dwarf the US banking system and touch nearly every facet of the economy. He talked about how these markets facilitate mortgages, auto loans, and government borrowing, connecting individual households and businesses to a wider financial ecosystem. By referencing the US SEC’s role in enforcing “common-sense rules of the road,” he discussed the importance of trust and order in financial markets, likening them to stop signs or referees on a playing field. Launched during Gensler’s tenure, the Office Hours series aimed to bridge the gap between the SEC...

On 15 January 2025, the International Organization of Securities Commissions (IOSCO), in collaboration with the Basel Committee on Banking Supervision (BCBS) and the Bank for International Settlements’ Committee on Payments and Market Infrastructures (CPMI), released a final report titled Transparency and Responsiveness of Initial Margin in Centrally Cleared Markets – Review and Policy Proposals. This publication aims to address systemic risks by increasing transparency and enhancing the responsiveness of initial margin (IM) models used by central counterparties (CCPs). The report builds on prior analysis of margining practices and incorporates industry consultations and data-driven research. Its recommendations are part of a larger initiative by global regulatory bodies to ensure the resilience of financial markets, particularly in the wake of significant market disruptions observed during the COVID-19 pandemic and subsequent commodity market volatility. The report is a culmination...

On 15 January 2025, the United States Commodity Futures Trading Commission (US CFTC) and the Bank of England issued statements on the release of Final Report on Transparency and responsiveness of initial margin in centrally cleared markets – review and policy proposals addressing transparency and responsiveness of initial margin in centrally cleared markets. The report, published by the Basel Committee on Banking Supervision (BCBS), the Committee on Payments and Market Infrastructures (CPMI), and the International Organization of Securities Commissions (IOSCO), represents a culmination of collaborative efforts to strengthen financial stability in response to market challenges observed in recent years. The report was co-chaired by the US CFTC and the Bank of England. It builds on the September 2022 report Review of Margining Practices, which identified six critical areas for policy improvement following the market turmoil in March 2020. After extensive data analysis and consultations...

On 15 January 2025, the United States Securities and Exchange Commission (US SEC) announced the upcoming departure of Jessica A. Wachter, Chief Economist and Director of the Division of Economic and Risk Analysis (DERA). Jessica A. Wachter, who has led the division since mid-2021, will leave the US SEC on 17 January 2025 to resume her academic career at the Wharton School of the University of Pennsylvania. US SEC Chair Gary Gensler commended Wachter for her significant contributions to the agency, stating: “I thank Jessica for her leadership of the Division of Economic and Risk Analysis, her judgement, and her thoughtful economic analysis. As Chief Economist, she ably led a division that has a seat at the table for all of the SEC’s critical decision making, whether it’s policymaking, enforcement, or monitoring markets. I have enjoyed and learned so much from working with Jessica who has been one of my closest advisors. I wish her very well as she returns to academia.” Under Jessica...

On 13 January 2025, the United States Commodity Futures Trading Commission (US CFTC) announced the departure of Clark Hutchison, Director of the Division of Clearing and Risk, effective 15 January 2025. Hutchison has led the division since July 2019. Clark Hutchison managed the supervision of derivatives clearinghouses and their members, ensuring rigorous oversight through risk assessment and surveillance. Before joining the US CFTC, he held senior roles in prominent global financial institutions, focusing on clearing and risk management. His extensive experience includes serving as a special advisor to the board of the Futures Industry Association, a member of the Chicago Mercantile Exchange’s Risk Committee, and a board member of NASDAQ Futures, Inc. Clark Hutchison’s appointment as Director of the Division of Clearing and Risk commenced in July 2019. His departure, announced two days prior to his final day on 15 January 2025, comes 2,016 days after he assumed the role. US CFTC...

On 13 January 2025, the Australian Securities and Investments Commission (ASIC) announced that it is consulting on the future of the ASIC Corporations (Business Introduction Services) Instrument 2022/805 (the Instrument). The Instrument, which provides conditional regulatory relief for certain business introduction services, is set to expire on 1 April 2025. ASIC is inviting feedback on two key issues: whether the relief for managed investment schemes should be extended and whether previous relief for securities, other than debentures, should be reinstated. Submissions must address why such reinstatement is necessary, particularly if the crowd-sourced funding (CSF) regime under the Corporations Act 2001 does not adequately support small- to medium-scale capital raisings. Stakeholders have until 5 February 2025 to provide input. The Instrument grants conditional relief from specific provisions in the Corporations Act, including fundraising, financial product disclosure, hawking, and...

On 13 January 2025, the United States Commodity Futures Trading Commission (US CFTC) announced that Gemini Trust Company LLC, a New York-based trust company, has been ordered by the US District Court for the Southern District of New York to pay a $5 million civil monetary penalty by a consent order. This penalty follows findings that Gemini made materially false or misleading statements and omissions during the self-certification process for a bitcoin futures product. The case, which began with a US CFTC complaint on 2 July 2022, involved allegations of misconduct by Gemini from July to December 2017. During this period, Gemini’s representatives made or failed to disclose certain critical facts to the US CFTC about the bitcoin futures contract, which was to be settled based on the spot bitcoin price determined through an auction held on the Gemini platform. These misrepresentations, which included false claims about prefunding requirements, trade volumes, liquidity, and fee rebates,...