The Futures and Options Association has issued guidance aimed at providing listed derivative market participants with industry standards to mitigate the risk of transacting in electronic trading environments, in particular with regards to high-frequency and automated trading. The guidance looks to complement and build on the European Securities and Markets Authority guidelines on systems and controls in an automated trading environment, which came into force in May. Key objectives of the guidance include clarifying the duties and responsibilities of market participants. Lofchie Comment: The

The Loan Market Association has launched a new recommended form of Single Currency Term Facility Agreement for use in developing market jurisdictions, in response to demand from market participants. The agreement uses the same basic structure and boilerplate as other LMA form documents, and assumes that the transaction is an unsecured single currency term loan. Although the drafters of the template envisaged that English law would apply to the agreement, market participants are encouraged to consider any other relevant legal and commercial issues arising in the relative jurisdiction.

The Investment Management Association has issued industry guidance for enhanced disclosure of fund charges and transaction costs incurred by UK-authorized funds. The guidance is intended to assist consumers with their understanding of fund charges and costs, and follows a consultation launched in June. Overall, the guidance suggests that firms should exceed the current European regulatory requirements by providing information on websites for each of their funds such as the disclosure of the ongoing figures charge (as opposed to the annual management charge). Members are asked to implement

Commissioner Bart Chilton made a speech regarding the need for a culture shift conversation (i.e., a shift in focus in our financial sectors) with the government, the private sector and other interested parties with the aim of improving the financial system. Specifically, Chilton asserts that inducements and bonus systems create a poisonous pattern in the financial corporate culture and fail to generate the long-term gains (such as sustainable economic growth or real value to the business, consumers and the country). Chilton argues that compensation systems should be fashioned upon a risk

The Alternative Investment Management Association (AIMA) has announced the appointment of a new non-Executive Chairman, Kathleen Casey, the former SEC Commissioner and representative to the International Organization of Securities Commissions (IOSCO) and the Financial Stability Board (FSB). The period of her appointment is for two years. She replaces outgoing AIMA non-Executive Chairman Todd Groome following the expiry of his term.