Regulatory changes put spotlight on UK auditors

Dollars down a black hole

The 2008 financial crisis was in part a failure of audit – and UK authorities are pushing to bring auditors to heel this year. But the reforms happening at national and EU level may not go far enough

Scaling operational loss data and its systemic risk implications

Digital encryption key

Failing to adopt a scaling methodology when including external data in operational risk calculations could lead to a distortion of capital charges and possibly systemic risk in a banking system relying on consortium data. Here, Roberto Torresetti and Claudio Nordio propose a scaling methodology to help overcome these shortcomings and compare the outcome with respect to alternative methodologies on a real operational data sample

Project Colin: why Goldman-led margin hub fell apart


The world’s big dealers quietly started work on a new swaps market utility last year, dubbed Project Colin. The aim was to control the vast collateral flows arising from incoming bilateral margining rules, but the consortium has since fallen apart, and a coalition of middleware and back-office firms have stepped into the breach

Do insurers need a CIO?


The UK regulator has proposed five ‘controlled function holders’ for insurers without including a chief investment officer. But the role is too important to overlook, says Scott Eason of Barnett Waddingham

Firms weigh benefits as EU power market coupling expands

German power - renewables capacity

Day-ahead power market coupling has been in operation across the North West Europe region for over a year. To what extent has it helped prices converge, and what are the next steps aimed at bringing Europe’s electricity markets closer together?

Geeks at the gates


Hampered by increasingly complex regulations, as well as the cost and inertia of inefficient legacy systems, banks are facing growing competition from innovative non-bank organisations. Unless they start to confront the mission-critical importance of transforming their technology, could they face death by a thousand cuts?