Tag Archives: Watchdog
BEIJING/SHANGHAI (Reuters) – In China, a platform for risqué jokes is no laughing matter.
Toutiao, a hugely popular news and online content portal that is luring investors, was forced to pull its joke sharing “Neihan Duanzi” app, literally meaning “implied jokes”, after a watchdog said it included “vulgar and improper content”.
The move comes amid a broader clamp-down targeting online content from livestreams and blogs to mobile gaming, as the country’s leaders look to tighten their grip over a huge and diverse cultural scene online popular with China’s youth.
China’s State Administration of Radio and Television ordered the app to be taken down permanently in a post on Tuesday for low values that had “caused strong disgust amongst netizens”. It urged Toutiao to regulate similar content on its other sites.
Toutiao, one of the country’s fastest-growing tech start-ups which was valued at around $ 20 billion last year, has been in hot water with regulators lately. Earlier this week, its main mobile app was also removed from a number of Chinese smartphone app stores following reports of increased censorship.
In a public letter titled “Apology and Introspection”, Toutiao founder Zhang Yiming pledged to raise the number of in-house censors – referred to as content auditors – to 10,000 people from 6,000 currently to keep its content wholesome.
“This product walked the wrong path and had content in deviation of socialist core values,” he wrote in the letter posted on his official microblog account on Wednesday.
Reporting by Pei Li and Adam Jourdan; Editing by Michael Perry
LONDON (Reuters) – Some firms using computers to trade at ultra-fast speeds are not applying safeguards required to avert market meltdowns, Britain’s Financial Conduct Authority (FCA) said on Monday.
Algorithmic or high-frequency trading uses computers to automatically place an order in financial markets, without human intervention, and represents sizeable volume on stock markets.
The FCA reviewed algorithmic trading, which some critics have blamed for sharp price moves, at about a dozen firms and found some were failing to properly apply mandatory safeguards.
Sterling’s “flash crash” in Asian trading in October 2016 for instance was blamed by some on algorithmic trading, but a central bank report later concluded there was no single perpetrator.
“Firms should consider and act on (the review‘s) content in the context of good practice for their business,” Megan Butler, the FCA’s director of wholesale supervision, said.
Some firms were unable to show that their systems are tested and operating properly, a requirement since January under the European Union’s MiFID II securities law.
“Additionally, firms need to do more work to identify and reduce potential conduct risks created by their algorithmic trading strategies,” the FCA said in a report.
The FCA did not propose new rules but will “proactively” supervise and monitor algorithmic trading, adding that firms need to consider the combined impact multiple strategies may have on the fair and effective operation of financial markets.
The FIA European Principal Traders Association (EPTA) said the FCA review was done before MiFID II came into force, adding that as members trade their own money, they have a strong focus on risk management.
The FCA said last year it would not take enforcement action straight away as long as firms were making efforts to comply with MiFID. Neil Robson, a lawyer at Katten Muchin Rosenman, said Monday’s statement suggested regulatory forbearance may be short lived.
In a related move on Monday, the Bank of England published a consultation paper on what it expects from firms it authorizes regarding the management of risks from algorithmic trading.
“It applies to all algorithmic trading activities of a firm, including in respect of unregulated financial instruments such as spot foreign exchange,” the BoE’s Prudential Regulation Authority said in a statement.
FIA EPTA Secretary General Piebe Teeboom said it was important that all players in algorithmic trading are subject to the same requirements and high levels of market conduct.
All firms should name a senior person who is responsible for algorithmic trading, and branches of foreign banks in Britain will have to show they are properly managing risks.
The PRA guidance will come into effect in June and the regulator will publish a discussion paper on operational resilience in algorithmic trading later this year.
Additional reporting by Maiya Keidan; Editing by Alexander Smith and David Holmes
LONDON (Reuters) – Britain’s markets watchdog said it has opened an investigation into the hacking of U.S. credit reporting agency Equifax, which affected nearly 700,000 UK citizens.
“The Financial Conduct Authority announces today that it is investigating the circumstances surrounding a cybersecurity incident that led to the loss of UK customer data held by Equifax Ltd on the servers of its U.S. parent,” the watchdog said in a statement on Tuesday.
“This statement is made given the public interest in these matters.”
The announcement follows a letter from Nicky Morgan, chair of the House of Commons’ Treasury Committee to the watchdog, asking if Equifax had violated terms of its license to operate in the country, and whether the regulator had the power to compel the company to provide compensation to UK consumers.
Equifax has said that 15.2 million records on British citizens were involved in the breach, including sensitive data on what it said were 693,665 individuals, for whom credit protection services were offered.
The UK data accessed by unknown hackers included credit accounts, user credentials, partial credit card details and driver license numbers. The remaining 14.5 million records contained names and birth dates of UK consumers were “potentially compromised”, the company disclosed.
Equifax first revealed in September it had been the target of a massive data breach which hit around 143 million people, mostly in the United States.
Reporting by Huw Jones; Editing by Rachel Armstrong and David Evans