A widening probe of the foreign-exchange market is roiling an industry already under pressure to reduce costs as computer platforms displace human traders. . .

http://www.bloomberg.com/news/2014-02-18/fx-traders-facing-extinction-as-computers-replace-humans.html

Britain’s biggest bank, HSBC, is expected to reignite the debate over the European Union bonus cap by revealing that its top bankers – including chief executive Stuart Gulliver – are to be awarded share payouts to compensate them for any potential reduction in income caused by the EU’s new rules. . .

http://www.theguardian.com/business/2014/feb/23/hsbc-payouts-bonus-cap-row

Royal Bank of Scotland Group Plc Chief Executive Officer Ross McEwan moved to reassure employees that there will be “no big announcement” on job cuts when the lender publishes the results of its strategic review next week. . .

http://www.bloomberg.com/news/2014-02-20/rbs-to-retreat-from-investment-banking-with-30-000-cuts-ft-says.html

Many examples during the recent crisis revealed that the risk models used by financial institutions often made them blind to extreme risks. . .

http://www.ecb.europa.eu/pub/pdf/scpwps/ecbwp1641.pdf

On 13 January 2014, the European Central Bank (ECB) received a request from the Polish Minister for Finance for an opinion on a draft law on the macro-prudential oversight of the national financial system (hereinafter the ‘draft law’). . .

http://www.ecb.europa.eu/ecb/legal/pdf/en_con_2014_18_f_sign.pdf

The aim of this paper is to assess whether the findings of Romer and Romer (2000) on the superiority of staff forecasts are still valid today. . .

http://www.ecb.europa.eu/pub/pdf/scpwps/ecbwp1635.pd

Barclays said its new head of compliance will be Mike Roemer, currently its head of internal audit, filling the role left vacant two months ago by the exit of former UK regulation chief Hector Sants. . .

http://www.reuters.com/article/2014/01/31/barclays-compliance-idUSL5N0L52O420140131

A battle over banker bonuses is building in this financial capital.

Since the 2008 crisis, regulators around the world have tried to rein in bonuses, worried that big payouts encourage excessive risk-taking by bankers and traders. The European Union has gone further than most, limiting bankers to bonuses equal to one or two times their salaries. . .

http://dealbook.nytimes.com/2014/02/13/banks-in-london-devise-way-around-europes-bonus-rules/?_php=true&_type=blogs&_php=true&_type=blogs&module=BlogPost-Title&version=Blog%20Main&contentCollection=Investment%20Banking&action=Click&pgtype=Blogs&region=Body&_r=1

UPDATE 1-UBS, Barclays raise bonuses for bankers in 2013, Goldman cuts . . .

http://uk.reuters.com/article/2014/02/12/banks-pay-idUKL5N0LH3PF20140212

Longtime SAC Capital compliance chief Steve Kessler is leaving the hedge-fund firm after nine years, according to a source familiar with the matter. . .

http://hereisthecity.com/en-gb/2014/02/15/sac-compliance-chief-steve-kessler-exits-firm/