Latham & Watkins LLP

Subscribe to Latham & Watkins LLP's Posts
Fintech.Picture1

With appropriate safeguards, distributed ledger technology may expand the use of non-cash assets as derivatives collateral, while mitigating certain market infrastructure inefficiencies.

By Yvette D. Valdez, Adam Bruce Fovent, and Deric Behar

On November 21, 2024, the Digital Asset Markets Subcommittee (the Subcommittee) of the Commodity Futures Trading Commission’s (CFTC) Global Markets Advisory Committee (GMAC) issued a report (the Report) that recommended expanding the use of non-cash collateral in derivatives markets through distributed ledger technology (DLT).

In the…

Big Ben London England by Night

When the Edinburgh Reforms were announced on 9 December 2022, they were billed as an ambitious set of reforms. Two years on, we assess which of the measures have been completed, which remain outstanding, and whether they have delivered on the agenda set out.

We also reflect on the recent Mansion House announcements, which have reset the future of regulatory reform.

Read the full report.

Securities and Exchange Commission, SEC, Building in Washington DC

Three recent enforcement actions highlight the risks of failing to adhere to representations made to investors regarding ESG and biblically responsible investing strategies.

The upcoming change in US administration is expected to bring about significant priority shifts by the federal government, including at the US Securities and Exchange Commission (SEC). One area of potential overlap that the investment community should be prepared for, however, is in the realm of thematic investing. Citing its core mission to protect investors; maintain fair…

The survey finds that most firms are using AI, but many only have a partial understanding of how the technology operates.

By Becky Critchley and Gary Whitehead

On 21 November 2024, the Bank of England (BoE) and FCA published a report setting out their findings from the AI and Machine Learning Survey 2024. In the context of the rapid adoption and integration of AI technologies across financial services, the regulators are keen to understand the opportunities and challenges that market…

banking

Proposals reflect drive to enhance the competitiveness of the UK regulatory landscape.

By Rob Moulton, Kendall Burnett, Sarah Gadd, Charlie Bowden, and Charlotte Collins

On 26 November 2024, the PRA and the FCA published a joint Consultation Paper on changes to the remuneration rules (PRA CP16/24, FCA CP24/24). The changes are relevant to banks, building societies, and PRA-designated investment firms.

While the amendments to the rules on deferrals and retention had been previewed by both the…

Law-Practices-Finance-pen-and-graph-670x447

IT teams will want to contribute to the debate over the FCA’s proposed changes, which could introduce additional complexities and lead to major IT costs for firms.

By Rob Moulton and Becky Critchley

On 15 November 2024, the FCA issued a Discussion Paper on improving the UK transaction reporting regime (DP24/2). The FCA receives seven billion transaction reports a year on 20 million different reportable financial instruments, and firms find submitting such reports accurately a difficult, costly, and…

Amazing London skyline with Tower Bridge during sunset

The new regime will take effect on 1 January 2025, but will not diminish the responsibilities of financial services firms relying on the services of critical third parties.

By Rob Moulton, Fiona Maclean, Alain Traill, and Charlotte Collins

On 12 November 2024, the PRA, FCA, and Bank of England jointly published a Policy Statement (PRA PS16/24 and FCA PS24/16), setting out their final rules for critical third parties (CTPs). The regulators consulted on this framework in December…

Global inflation rate 2022 problem stockmarket and risk asset stockmarket crash

Significant concerns of many groups remain.

By Arthur S. Long, Roman Martinez, Pia Naib, and Jordan R. Goldberg

On September 10, 2024, Federal Reserve Vice Chair for Supervision Michael Barr gave a speech (the Barr Speech) in which he outlined the principal changes that he would recommend to the full Board of Governors in a re-proposed rule to implement the Basel Endgame (the Re-Proposal).

The Basel Endgame would overhaul the methods by which large banking organizations…

portion of trees against office buildings

The regime will have broad reach, although its implementation will likely take several years.

By Nicola Higgs, Rob Moulton, Becky Critchley, and Charlotte Collins

On 14 November 2024, HM Treasury laid out the future UK regulatory regime for environmental, social, and governance (ESG) ratings providers. It previously consulted on proposals for the new regime in spring 2023 (see this Latham blog post).

HM Treasury has now confirmed:

“With the global ESG market predicted to surpass $40…

display stock market numbers with defocused street lights background

The world’s first regulated private/public crossover market is significantly redesigned as a friction-free “private up” rather than “public down” market with rethought approach to disclosure and market abuse.

By Mark Austin, Chris Horton, James Inness, Anna Ngo, Frederick Gardner, and Johannes Poon

On 14 November 2024, the UK government published its response to the March 2024 consultation on the UK’s proposed new regulated private/public crossover market, the Private Intermittent Securities and Capital Exchange System (PISCES).