News Nuggets | 31 August: CQG Trader Platform Retires; Twitter to Collect Biometric Data

UBS Announces Significant Job Reductions

The Swiss banking giant, UBS has unveiled plans to streamline its workforce in the wake of its integration with Credit Suisse. UBS' CEO, Sergio Ermotti, announced that the integration process will lead to the elimination of approximately 1,000 jobs from Credit Suisse.

According to a report by CNN, this move accounts for around 8% of the combined staff of the two banks in Switzerland. The merger resulted in UBS reporting a net profit of USD $29 billion in the second quarter, largely attributed to the accounting technicality linked to the acquisition.

FCA's Wholesale Data Market Study: Update

The Financial Conduct Authority (FCA) is making significant progress in its wholesale data market study, with plans to release the report by 1 March 2024. In the latest update, the FCA has initially decided not to refer any of the three markets under scrutiny to the Competition and Markets Authority (CMA).

While assessing these markets, the FCA is reportedly closely examining concerns related to the dominance of established firms, which could dampen competition. Additionally, the updated report highlighted certain commercial practices that might lead to greater complexity and reduced transparency in pricing and contract terms.

Nomura Releases Sustainable Corporate Value Report 2023

Nomura Holdings has released the Nomura Report 2023, a comprehensive integration of its annual report and citizenship report. This tradition, dating back to 2012, serves as a platform to furnish clients, shareholders, employees, and shareholders with a holistic view of Nomura's operations encompassing financial and non-financial aspects.

The report underscores the management's perspective and highlights instances of Nomura's strategies, illustrating its commitment to augmenting corporate value in a sustainable manner by contributing to economic and societal progress.

Bitget and CCData Targets Institutional Data Services in New Partnership

The crypto derivatives and copy trading platform, Bitget has entered into a strategic partnership with CCData, an institutional-grade digital asset data provider. According to Bitget, this collaboration reflects its commitment to delivering data solutions for institutional investors.

Gracy Chen, the Managing Director of Bitget, said: "Our partnership with CCData heralds a new era of institutional-grade data exposure for our users. This venture amplifies our platform's capabilities and endows our users with a competitive edge within the dynamic digital asset landscape."

CQG Has Announced Retirement of CQG Trader Platform

CQG, a trading technology solutions provider, has announced that it will retire its CQG Trader platform later this year. Starting from 1 July, the platform will no longer accept new users, directing them to use the CQG Desktop instead. The company will provide further information on the transition for current users.

The move indicates a strategic shift for CQG, encouraging customers to transition to the CQG Desktop. While specifics about the retirement process are yet to be disclosed, it is clear that CQG is aiming to streamline its offerings and focus on more modern solutions for its customer base.

X Expands Data Collection Policy

X, formerly known as Twitter, is updating its privacy policy to include biometric data collection based on user consent. This move is a part of X's broader strategy to enhance safety, security, and identification on the platform. However, the specifics of what constitutes biometric data were not disclosed.

The policy change comes amid ongoing criticism of social media companies for their data collection practices. Elon Musk, who purchased Twitter last year, has been vocal about his goal to authenticate accounts and promote services that apply a blue checkmark, thereby indicating that the user is more likely to be human and has paid a subscription fee.

FCA Issues New Warnings against Unauthorized Firms

The Financial Conduct Authority (FCA) has released a series of warnings against companies that are not authorized or registered by the regulatory body. These warnings were published on 31 August 2023, and target six different companies: CAPTECINVLTD.COM, FUNDEDSIGNALTRADES, ALPHALUXSE, PINNACLE ASSETS, FX MONSTERS, and Trade Rescue. The FCA advises the public to be cautious and to find out more about the risks associated with unauthorized firms.

Liquidnet Becomes Plato Partnership's First Strategic Partner

Plato Partnership, a not-for-profit organization that brings efficiencies to the equity marketplace, has welcomed Liquidnet as its first Strategic Partner. Liquidnet, known for its technology-driven execution services, will contribute to Plato's key initiatives that aim to innovate the capital markets.

These initiatives include the Plato Strategic Initiatives Group, Plato's Market Innovator (MI3) program, and the Turquoise Plato Expert Group. Each of these initiatives has specific aims, such as improving market structure and identifying solutions for better trade execution.

Chris Jackson, the Global Head of Equity Strategy at Liquidnet, expressed enthusiasm for Plato's work and confirmed Liquidnet's commitment to leveraging technology for more efficient financial markets.

Corentine Poilvet-Clédière Takes the Helm at LCH SA

LCH Group has announced the appointment of Corentine Poilvet-Clédière as its European-based clearing house's CEO of LCH SA, effective from 1 October 2023. She will succeed Christophe Hémon, who has led the company since 2004. Poilvet-Clédière brings over 15 years of experience in the financial markets, having previously worked in strategic roles, including Head of RepoClear and Collateral Management at LCH SA.

She will report to Daniel Maguire, the CEO of LCH Group and Group Head of Post Trade at LSEG. Corentine's experience in the financial markets, including her central role in regulatory strategy at the London Stock Exchange Group (LSEG), makes her a strong fit for the role.

Sumsub Introduces Free Compliance Solution

Sumsub, a global verification platform, is offering a six-month free trial of its Travel Rule compliance solution for cryptocurrency organizations. This solution is right on time as the UK will enforce a new Crypto Travel Rule legislation to combat money laundering and terrorism financing. The Financial Action Task Force (FATF) Recommendation 16 will now extend to virtual assets and Virtual Asset Service Providers (VASPs), requiring them to exchange and verify identifying information for all transfers.

US organizations operating in the UK must now adhere to this expanded legislation. The new rule mandates compliance for all transactions, regardless of the amount, although special requirements are in place for transactions exceeding €1,000.

Goldman Sachs Faces Scrutiny over Fintech Partnerships

US banking regulators have raised concerns about Goldman Sachs' risk and compliance oversight in its partnerships with fintech companies. A division of the bank's transaction business has halted onboarding riskier fintech clients following a warning by the Federal Reserve (Fed). The issues cited include insufficient due diligence and monitoring processes for high-risk non-bank clients.

This setback adds to the challenges Goldman Sachs is facing in its attempt to expand into new business areas under the CEO, David Solomon. The Federal Reserve's criticism highlights the need for stricter compliance measures, especially as Goldman aims to provide banking infrastructure to fintech startups like Stripe and Wise.