Can pay, will pay
Regulated firms and individuals in the UK will no longer be
able to turn to insurance payouts to cover them in the event of
any wrongdoing they may commit in the markets. Financial
Services Authority (FSA) has issued new rules intended to
ensure that anyone who is fined by the regulator must pay the
fine himself rather than claim it under insurance. FSA said the
changes reflected concerns that firms are increasingly taking
out insurance policies designed to pay for FSA fines. FO
Week recalls at least one firm which introduced insurance
to protect against potential rogue traders in the wake of Nick
Leeson et al. What will they be flogging now, one
Silly season spats
With the Silly Season firmly upon us, FO Week hacks
are eternally grateful to the Chicago exchanges for not
changing the habit of a lifetime and keeping us supplied with
column inches over their various internal wranglings over the
quiet summer period. In one corner we have CME suing CMX over
the use of a pneumonic that looks vaguely similar to that of
the bigger and more famous futures exchange. In another we have
CBoT still embroiled in its debate with its minority
shareholders over who gets what when the exchange finally gets
its approval to restructure as a for-profit company. Keep it up
boys: we've only got a few weeks of the summer left!
Preparations for FOW's annual exhibition and seminar programme
in Singapore (Raffles City Convention Centre, 16-17 September)
are almost complete and the opening speeches should provide
much food for thought. As Singapore traders wonder what will
become of the mutual offset agreement between Chicago
Mercantile Exchange and Singapore Exchange - oft quoted as the
only example of a truly successful link between two exchanges -
presentations from Hsieh Fu Hua, ceo of Singapore Exchange, and
Craig Donohue, executive vp and chief administrative officer of
CME, could shed some light. For further information about the
event please visit: www.fow.com/events/singapore
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