www.securitiesindustry.com

^SEPTEMBER ¹⁷^, ²⁰⁰⁷^Stock ^Lending ^vs. ^Corporate ^Governance_N _D^FinCEN ^Issues“^We ^do ^not ^view ^the_{EWS ESK}_Shareholder _advocates_A _new _search _engine _from _The-Is Securities Lending Part of _call _for _{transparency;} _Your _Proxy _Voting _Policy?_AML _Guidance _forinteraction between an _Markets.com _and _Instant _{Informa- tion;} _a _new _options _strategist _at_regulators _may _weigh _in_thinkorswim; _and _more. _PAGE ₃_{BYCHRISKENTOURIS}_OTC _Derivatives_executing _dealer _and _{a prime} _brokerage _client

P

H

O

N
E

G

E

Y

I

V

A

W

A

O

N

S

I
T
E
!
R
e
g
i
s
t
e
r
f
o
r
y
o
u
r
c
h
a
n
c
e
t
o
w
i
n
!

_P_ERSPECTIVESA s fund managers become BYJOHNSANDMAN as the establishment … more attuned to corporate

GUEST COMMENT: The asset management industry’s “recent run of stel- ^governance ^issues, ^they ^are ^grap-^O^ne ^month ^since ^Section ³¹²^of ^a ^{correspondent}of the USA Patriot Act be- lar returns” offers a perfect opportunity pling with the difficult task of bal- ^account ^for ^the ^prime_{Yes No}came final, the Treasury Depart-

to increase efficiencies by automating ancing fiduciary responsibpilriteysweinthts 37.9% 49.3% ment’s Financial Crimes Enforce- brokerage client.” reconciliation processes, says Advent

_Software’s _Jeff _Gowan.shareholder activism when they en- ment Network (FinCEN) has is-

i

S^PAGe^E ⁴cgage uin srecuirtitieiselendsing. TThiseis a c h ^Don’t^–FinCEN ^guidance, ^Sept. ⁵_knowsued interpretive guidance spelling

ORIGINAL SOURCES: In today’s frag- revenue-enhancing activity that ₁₂_.9%out the due-diligence obligations

^mented ^market ^structure, ^trad₂^ers ^m₀^ust₀ben₇efits shareholders but can con- of broker-dealers executing trades Title III—an amended version arm themselves with a knowledge- _flict _with _other _interests.Source: Institutional Shareholder Services survey _able _guide _to _the _changing _liquidityin over-the-counter markets. of the Bank Secrecy Act (BSA) _landscape, _write _{Edge Trade}_C_’s _Jose_o_phInternational Corporate Gover- contracts based on those shares. The FinCEN guidance was de- of 1970—and was the last to be Wald and Kyle Zasky. PAGE 6 nanfceeNetwrorek (ICnGN)cof Leondon, This is not the first time that veloped separately from the final finalized. It goes into effect on _S_PECIAL _R_EPORTwhose members include some of the the securities industry has en- version of Section 312, which is de- Feb. 5, 2008 for new accounts, _Are _{institutional} _investors _th_A_at _d_r_o_c_n’t_hw_ito_erld’_cs b_tig_ig_nest_gpens_tio_hn f_eunds_F, re_ug- _tuco_rur_eaged governance-related best signed to bring clarity to the pro- and on May 5, 2008 for existing _search _in _{the rapidly proliferating} _darkulators, union representatives and practices in securities lending, but cedures U.S. financial firms use in accounts opened by U.S. finan-

pools of liquidity before turning to fast- individual shareholder activists, in ICGN was the first among share- assessing risk in their relationships cial institutions. ^executing ^listed ^venues ^not ^f^O^ulf^C^illi^T^ng^OBJu ^Ely^Rre²ite ⁴r^-a²te⁵d a code of conduct is- holder activists to come together with foreign banks. Section 312 is “As international anti-

their best-execuMtionArRe- _{sponsibilities?} _Even _at ₁₀RIOsue Td TinF2I0N05A, rNequCeIsAtinLg tChaEt cNom T-ERon a set of principles. In 2005, the widely viewed as the most con- money-laundering [AML] stan- _percent _of _total _eN_xecE_utiW_on YpOanRieKs s,epNarYate voting record dates Continued on page 35 tentious part of the Patriot Act’s dards improve globally, risk as-

volume, “it’s a very signif- from dividend record dates and sessments for foreign banks

_Larry _Tabb _of _Tabb _Group. _Also _inSRO Opponents’ Firm Faces Sanctions ^should ^become ^easier ^to ^con-this report: ITG; BNY ConAverGgEEXN; D^vA^ancT^eO^ofP^reI^cC^oS^rd: ^dates.

icant pool of liquidity to ignore,” says publish meeting agendas well in ad-

_At _a _meeting _in _Cape _Town,Some see payback in FinrKaEcYhNarOgeTsEaSgPaEinAstKcEleRarer ^duct,” ^said ^FinCEN ^directorand hard-to-find liquidity. PAGE 19 ^James ^Freis. “^Common ^stan-

_DSouth Africa, the governance or- BYCAROLE. CURTIS clearing firm baseJdamineLso Tn.gLweomoadn, dards are increasingly protect- ^EPARTMENTS^for ²⁰⁰g⁸an^aniz^dat^Bio^en^yofoⁿr ^dthe first time also Principal and Head of

The State of the Securities Industry and Global Outlook

_The _Co_u_s_r_t_g_, _e_S_d_ca_r_l_e_e_g_a_u_n_la_d_to_C_r_a_s_p_t_a_o_c_c_it_o_y_n_t_s_o_id_S_e_u_r_p_r_p_e_o_-_rt W ithin two weeks of be- Fla. with 42 correspondents serving ing both sides of the interna- Capital Markets _wealth _services _offerings _from _regional_High _Frec_qo_um_ei_nn_cg_yoperational, the over 34,000 accounts. tional relationship.”

CLEARING & SETTLEMENT: New

_RBC _Dain _pit _it _against _bulge-brT_ar_cka_-dingquSitrriantgegthieesdisclosure of all posi- Financial Industry Regulatory Au- The Aug. 13 c WomEp Sl Ta Wint A, TwEhRicChORP. FinCEN’s new guidance, is-

et firms’ correspondent clearing arms. tions or significant changes in po- thority (Finra), the self-regulatory also names former director John sued Sept. 5, is intended to ex- PAG ^DE^r1^a0^wins^git^Nio^en^as^refo^rr^tob^Glo^lc^ok^bs^alo^Mf s^uh^lta^i-r^Aes ^ssf^eo^tr^Clao^sr^sg^Tan ^raiz^daⁱⁿti^gon ^? (SRO) formed by the Busacca, contains a laundry list of tend that effort to establish com-

Register at:

Sheddiwnghic LhigdhitscolnosDuraerkwPou olodlsordinarily merger of NASD and the member financial and operations allegations, mon standards into the OTC ASSET SERVICING: Thomson Finan- _cial _bolsters _its _wealth _managem_T_e_h_n_e_t _Neb_we _Are_rq_cu _hi _itr_ee_cd_tue_rv_een_ofif_Rt _eh_ge_iop_no_as_li_Eti_xo_cn_hanr_ge_eg_sulation functions of the New including the potentially serious markets for derivatives and for- platform with Scivanatage’s back-office were comprised largely or entire- York Stock Exchange, filed a 17- ch^wa^wrg^we ^.t^sh^oat^uN^rcA^eC^mI medadiaecimonprfoepreernceeisg.nce^ox^mch^/a^Sn^Cge ^T. ⁰T⁷he question it

capabilities. ^PAGT^Eh¹e⁰ Fultyuroef bRoorlreoowfetdhoer Tle randt eshr ainreas.n TAhlegorictohumnit c complaint against North use of cu8st0om0-e8r 0fu3n-d3s 4to2m4ee/t d2ai1ly2-8d0ea3ls-6w0ith93is whether executing

^Tradingsa^Emⁿe^virw^ooⁿu^mld^ena^tpply to derivative American Clearing (NACI), a Continued on page 36 broker-dealers conducting OTC TRADING: The Open Platform for

Unregistered Securities joins a Sbutar-ndardizing Workflow for Trade ^transactions ^for ^a ^prime ^broker-

geoning group of private placemCelnetaring and Settlement
_systems. One More Time Around for FIX, Swift OMX Is More Than ^age ^should ^establish ^correspon-PAGE 12
Partnership could result in standard with multiple syntaxes Just an Exchange ^dent ^accounts ^with ^the ^primeContinued on page 36
COMPLIANCE: Foreign compliance
vendors entering the U.S. market face BYJOHNSANDMAN curities industry, an outcome that B YJULIE T TEFAIRLE Y

cultural, regulatory differences. PAGE 14 T he relationship between the Swift and many other players want- _FIX _and _Swift _messaging _{stan- ed} _to _avoid.F or more than 20 years, as it _brought _together _several _re-

^TECHNOLOGY: ^A ^Microsoft ^surveydards devolved from a July 2001 The original understanding was gional markets under the Nordic Ex- says financial firms are expanding _their _{high-performance} _computingmemorandum of understanding that a single messaging standard change banner, Stockholm-based

capacity. PAGE 32 (MOU) to pursue a sin- would be based on In- OMX gained control of about 80 ▼ gle standard to an im- ternational Organiza- percent of the Nordic and Baltic se-

_People _in _the _News _p3passe in 2006 when FIX tion for Standardization curities market while also supplying

Company Index p38 Protocol Ltd. (FPL) (ISO) 15022, which, at systems to some 60 exchanges, clear-

^People ^{Index p38}abandoned the plan. Yet that time, was expected ing entities and securities deposito-

▲ the possibility remains to ultimately be format- ries in more than 50 countries.

_On _the _Webthat the two major mes- ted in extensible markup Now, the company is poised to saging consortiums, ^Kevin ^Houstounlanguage (XML). In the operate on an even bigger stage, in-

_Fee _cuts _at _NYSE; _China _liftsFPL for front-end messages and the intervening years, interoperability cluding the U.S., pending a merg-

_ban _on _foreign _brokerages; _andSwift cooperative for clearance and between the two became a fallback er with the Nasdaq Stock Market.

more. See Breaking News at: settlement, will find a way to work position as FPL rolled out three The proposal, agreed to in May,

www.securitiesindustry.com. together—but with the result that more point upgrades to the tag- now faces a competing bid from

About this publication

fullscreen

article text for page

< previous story | next story >

add comment | read comments

Share this page with a friend
Save to “My Stuff”
Subscribe to this magazine
Search
Help