R3’s recent announcements warn banks to carefully watch blockchain as long as the technology remains immature. This comes at a time when blockchain-based initiatives see financial institutions taking the driver’s seat. The path to blockchain maturity demands the guiding role of bank industry independent associations, exactly what R3 is. This article takes the perspective of corporate banks.
On February 23, 2017, the European Banking Authority (EBA) published its final report on the draft regulatory technical standards (RTS) on strong customer authentication (SCA) and common and secure communication. The EBA was tasked to develop the RTS under Article 98 of EU Directive 2015/2366 (PSD2).
Blockchain technology (aka chaintech) applied to capital markets has been lauded as the next big thing in database management and ridiculed as vaporware, depending on who one asks. The “in operation” test, meaning real actors and real assets transacting on a blockchain, is a decade away according to the skeptics. But news out yesterday by Northern Trust and IBM suggests that this far, far away operational milestone for blockchain is, in fact, in the here and now.
With the departure of Forex Capital Markets (FXCM) from the U.S., leadership change, etc., financial reporters far and wide are asking for perspective on these events. Some go as far as probing whether this is the end for the U.S. retail foreign exchange (FX) industry—to which I say, no, it isn’t the death of retail FX in the U.S. since there are still three authorized brokers (Gain Capital, Oanda, and TD Ameritrade/thinkorswim). But why are there merely three viable U.S. brokers for FX when Japanese traders have a good dozen brokers (with 150,000 and more than 500,000 traders each) and another dozen brokers of smaller brokers behind that? Moreover, why did the U.S. and Japan go so far apart over the same (2005 to 2017) period in their regulation of the same industry?
This year’s "FinovateEurope" took place in London on February 7 and 8, 2017, attracting more than 1,500 visitors. Following the tested concept, fintech companies had the opportunity to present their ideas to the audience in a seven-minute pitch. Despite—or perhaps thanks to—the limited time available, most presentations came out crisp and clear. Less is more.