Featured Product

    BIS Publishes Report on Monitoring of Fast-Paced Electronic Markets

    September 17, 2018

    BIS published a report on the results of a study on monitoring of fast-paced electronic markets. The report examines major developments in the evolution of market structure and their implications for central banks. It also offers and overview of core components (in terms of data, tools, and analytics) of effective fast-paced electronic market monitoring, includes statistics on notable trends, and outlines the priorities and approaches of central banks in undertaking near-time and medium-term market monitoring.

    Foreign exchange and other fast-paced electronic markets have undergone significant structural changes in recent years. Trading has become increasingly electronic and automated, the use of machine learning is nascent but growing, incumbents are responding to the emergence of new participants, and activity has migrated across a range of trading venues. Moreover, the availability of data for market monitoring has increased substantially. The report points to an overall trend among central banks toward greater use of high-frequency, transaction-level data.

    The study also found limitations in the use of Markets in Financial Instruments (MiFID II) data to monitor foreign exchange and other fast-paced electronic markets. Although the use of these data seems promising, it faces three challenges in the form of limitation due to the scope of the legislation, the frequency of the collection, and the lack of centralization of aggregated data. As per the report, amid all these developments, the following key structural trends have emerged:

    • Trading is increasingly fragmented across a range of new venues, while the frequency of activity and speed of information flows have accelerated significantly, especially in foreign exchange markets.
    • Liquidity provision has become more concentrated among the largest banks, as smaller players resort to an agency model of market-making or exit the business altogether. Additionally, a new set of non-bank intermediaries, most notably principal trading firms, have strengthened their positions.
    • Greater electronification has led to the commoditization of large quantities of high-frequency data.

     

    Related Links

    Keywords: International, Banking, Securities, PMI, Electronic Trading, Market Monitoring, Foreign Exchange, MiFID II, Data, BIS

    Related Articles
    News

    EBA Publishes Standards on Disclosure of Investment Policy Under IFR

    The European Banking Authority (EBA) published the final draft regulatory technical standards on disclosure of investment policy by investment firms, under the Investment Firms Regulation (IFR).

    October 19, 2021 WebPage Regulatory News
    News

    EBA Updates Filing Rules for Supervisory Reporting

    The European Banking Authority (EBA) published version 5.1 of the filing rules for supervisory reporting.

    October 19, 2021 WebPage Regulatory News
    News

    ECB Amends Guideline on Procedures for Collection of AnaCredit Data

    The European Central Bank (ECB) Guideline 2021/1829 on the procedures for the collection of granular credit and credit risk data has been published in the Official Journal of European Union.

    October 19, 2021 WebPage Regulatory News
    News

    APRA Finalizes Guidance for New Prudential Standard on Remuneration

    The Australian Prudential Regulation Authority (APRA) published the prudential practice guide CPG 511 to assist banks, insurers, and superannuation licensees in meeting requirements of CPS 511, the new prudential standard on remuneration.

    October 18, 2021 WebPage Regulatory News
    News

    OCC Updated LIBOR Self-Assessment Tool for Banks

    The Office of the Comptroller of the Currency (OCC) published a bulletin that provides an updated self-assessment tool for banks to evaluate their preparedness for cessation of the London Interbank Offered Rate (LIBOR).

    October 18, 2021 WebPage Regulatory News
    News

    TCFD Updates Guidance for Financial Disclosures on Climate Risk

    The Financial Stability Board (FSB) published a report that examines the progress made toward disclosures aligned with recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).

    October 14, 2021 WebPage Regulatory News
    News

    BCBS Report Examines Progress on Adoption of Basel III Framework

    The Basel Committee on Banking Supervision (BCBS) published the progress report on adoption of the Basel III regulatory framework in member jurisdictions.

    October 14, 2021 WebPage Regulatory News
    News

    ACPR Implements Updates Related to DPM Version 3.1

    The French Prudential Supervisory Authority (ACPR) has implemented, in its information system, updates linked to the Data Point Model (DPM) version 3.1.

    October 14, 2021 WebPage Regulatory News
    News

    EBA Note Examines Transition Risks of Benchmark Rates

    The European Banking Authority (EBA) published a thematic note that aims to identify and raise awareness of the transition risks of benchmark rates, as the London Interbank Offered Rate (LIBOR) and the Euro Overnight Index Average (EONIA) are close to being phased out.

    October 14, 2021 WebPage Regulatory News
    News

    OSFI to Communicate Next Steps on Climate Risk Policy in Early 2022

    In a letter to the federally regulated financial institutions and pension plans, the Office of the Superintendent of Financial Institutions (OSFI) published a summary of the feedback received to the January 2021 discussion paper on ways to address climate risks.

    October 12, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7568