The leading knowledge platform for the financial technology industry
The leading knowledge platform for the financial technology industry

A-Team Insight Blogs

UK Government Proposes Insolvency Rule Changes Including More Counterparty Data

The UK government has proposed changes to insolvency rules to give greater protection to investors and markets in the event of the failure of an investment bank. The rule changes are aimed at rectifying issues that have been identified since the collapse of financial institutions such as Lehman Brothers last year.

The focus is on reducing counterparty risk by providing more information about outstanding trades and mandating that firms implement contingency plans for continuity of service obligations in the event of insolvency. Firms will be required to provide information including the status of outstanding trades and the details of contingency plans to the UK Financial Services Authority (FSA) on a regular basis.

The government decided against adopting a US style Chapter 11 regime because it was deemed unsuitable for the UK market in light of the current legal regime. The proposals claim that the UK regime is more attractive than that of other jurisdictions because it does not distinguish between domestic and international creditors.

Although the introduction of these “pre-failure” steps could be criticised for being too little, too late, the government is keen to be seen to be tackling the systemic consequences that can occur from the collapse of a large financial institution.

Related content

WEBINAR

Upcoming Webinar: Sanctions – The new pre-trade challenge for the buy-side

Date: 22 September 2021 Time: 10:00am ET / 3:00pm London / 4:00pm CET Duration: 50 minutes Sanctions screening at the security level is a relatively recent requirement for the buy-side. It dives deeper than traditional KYC and AML screening and is immensely challenging as firms must monitor frequently changing sanctions lists, source up-to-date sanctions data...

BLOG

Fenergo Transaction Gives 70% Ownership to Astorg and BridgePoint at $1.64 Billion Valuation

After months of speculation, Fenergo has secured new ownership and capital for future growth in a deal that values the Irish provider of KYC and client relationship management software at $1.64 billion. Under the transaction, French private equity group Astorg and BridgePoint, a London-based hedge fund, have acquired a majority stake in Fenergo, buying out...

EVENT

TradingTech Summit Virtual

TradingTech Summit (TTS) Virtual will look at how trading technology operations can capitalise on recent disruption and leverage technology to find efficiencies in the new normal environment. The crisis has highlighted that the future is digital and cloud based, and the ability to innovate faster and at scale has become critical. As we move into recovery and ‘business as usual’, what changes and technology innovations should the industry adopt to simplify operations and to support speed, agility and flexibility in trading operations.

GUIDE

Entity Data Management Handbook – Seventh Edition

Sourcing entity data and ensuring efficient and effective entity data management is a challenge for many financial institutions as volumes of data rise, more regulations require entity data in reporting, and the fight again financial crime is escalated by bad actors using increasingly sophisticated techniques to attack processes and systems. That said, based on best...