Good Risk Governance Pays

Good Risk Governance Pays

Investment Best Practices | Risk Management | Valuation

Category Archives: Trading

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Trading Ahead Of Investment Policies and Procedures

Posted in Compliance, Fiduciary Liability, Governance, Investment Management, Non-Profits, Risk Management, Trading
In response to a recent request by a reporter, I examined some public documents relating to what appears to be unauthorized trading. As is the situation when only some information is available, it’s hard to tell whether said trades can be characterized as rogue, mistaken or deemed to fall within a broader, albeit ill-communicated, mandate. Should this matter proceed further, obviously… Continue Reading

Fake News, Plagiarism and Business Ethics

Posted in Disclosure and Transparency, Ethics, Investment Management, Non-Profits, Risk Management, Trading
If you are a consumer of factual information, your head is probably spinning from the fast-paced discussions about what constitutes real news versus fake news. Not being a journalist, I’ll leave questions about a reporter’s obligations to the media industry’s standard-setters. That said, I can and do vote with my dollars. If I sense that an article or broadcast reflects shoddy… Continue Reading

Increased Regulation of Derivatives by Registered Funds

Posted in Derivatives, Disclosure and Transparency, International Investing, Investment Management, Mutual Funds, Regulation, Risk Management, Susan Mangiero, Trading
On December 11, 2015, the U.S. Securities and Exchange Commission (“SEC”) took steps to more actively regulate how derivative instruments are used by registered investment companies such as mutual funds, exchange-traded funds (“ETFs”), closed-end funds and business development companies. According to its Fact Sheet, a portfolio manager would have to either limit leverage via the use of derivatives to… Continue Reading

Effective Business Communications – Is Squeaky Clean Better?

Posted in Banking, Derivatives, Ethics, Financial Reporting, Investment Management, Trading
During a recent conversation with colleagues about effective business communication, the topic arose as to whether it is okay to use a swear word or two in conversations with colleagues and clients. Having worked on several tradings desks at different banks, my experience likely reflects two extremes. At one financial institution, I traded foreign exchange… Continue Reading

Financial Fraud At Ball State University

Posted in Broker Dealers, Compliance, Ethics, Financial Reporting, Fraud, Key Person, Trading
According to “Ex-prosecutor helps Ball State avert future fraud” (Indianapolis Business Journal, December 7, 2014), the university has hired a team to implement safeguards in the aftermath of losing more than $13 million in several investment scams. Using a reputable brokerage firm, establishing a third party managed hotline for whistleblowers and ensuring custodial best practices for securities are some… Continue Reading

CFTC Regulation and Compliance: Not Just for Commodities Brokers Anymore

Posted in Broker Dealers, Commodities, Compliance, Disclosure and Transparency, Financial Reporting, Hedge Fund, Regulation, Trading
Although the Dodd-Frank Wall Street Reform and Consumer Protection Act was passed over two years ago, regulators and financial market participants are still grappling with its complexities. Some aspects are still being finalized which adds to the challenge of compliance. According to “U.S. regulators yet to implement one-third of Dodd-Frank rules” by reporter Pat Dulnier (Bank… Continue Reading

Europe Readies For High Frequency Trading Compliance

Posted in Disclosure and Transparency, Liquidity, Regulation, Trading
In addition to sovereign debt restructuring, European financial market executives have a new mandate – high frequency trading governance. On February 24, 2012, the European Securities and Markets Association (“ESMA”) published the final version of “Guidelines on systems and controls in an automated trading environment for trading platforms, investment firms and competent authorities” in all… Continue Reading