sec

sec, securities-based swaps

The Securities and Exchange Commission today announced that it took a significant step toward establishing the regulatory regime for security-based swap dealers by adopting a package of rules and rule…

SEC charges Prudential Financial units with seclending-related tax benefits at the expense of advised funds

September 17, 2019

Prudential, sec, Securities Lending

The Securities and Exchange Commission today charged two subsidiaries of Prudential Financial Inc. with failing to disclose conflicts of interest and making misleading disclosures to the boards for 94 funds…

OCC settlements on regulatory matters with SEC and CFTC

September 5, 2019

CFTC, OCC, sec

OCC, the world’s largest equity derivatives clearing organization, released the below statement in response to a settlement reached with the U.S. Securities and Exchange Commission (SEC) and the U.S. Commodity…

SEC and CFTC propose lower margin rules for security futures

July 3, 2019

CFTC, Margin, sec, security futures

The Commodity Futures Trading Commission (“CFTC”) and the Securities and Exchange Commission (“SEC”) (collectively, the “Commissions”) are proposing amendments to regulations that establish minimum customer margin requirements for security futures.…

State Street Settles SEC Charges for Adding Undisclosed Markups on Client Expenses

June 27, 2019

The Securities and Exchange Commission today announced that State Street Bank and Trust Company has agreed to pay over $88 million to settle charges for overcharging mutual funds and other…

What’s next as the SEC addresses more unfinished Dodd-Frank business (Premium)

June 25, 2019

Dodd-Frank, Regulatory, SEC

capital, Dodd-Frank, sec, Securities Lending, Short selling, topstory

The US Securities and Exchange Commission (SEC) scored a big win last week with the announcement of capital and margin rules for security-based swap dealers and major security-based swap market…

SEC Adopts Capital, Margin, and Segregation Requirements for Security-Based Swap Dealers and Major Security-Based Swap Participants and Amends the Capital and Segregation Requirements for Broker-Dealers

June 21, 2019

capital, Margin, sec, security-based swap dealers

The Securities and Exchange Commission took another significant step toward establishing the regulatory regime for security-based swap dealers today by adopting a package of rules and rule amendments under Title…

SEC: Wedbush to Pay More Than $8.1 Million for Improper Handling of ADRs

June 18, 2019

ADR, sec, Wedbush

The Securities and Exchange Commission today announced that Wedbush Securities Inc. will pay more than $8.1 million to settle charges for improper handling of “pre-released” American Depositary Receipts (ADRs). This…

SEC: ICBC affiliate to pay more than $42 million for ADR mishandling

June 17, 2019

ADRs, ICBC, sec

The Securities and Exchange Commission today announced that Industrial and Commercial Bank of China Financial Services LLC (ICBCFS), a wholly-owned subsidiary of Industrial and Commercial Bank of China Limited, will…

Austrian AI startup 42.cx CEO gets $17mn legacy charge from SEC for defrauding US investors

April 2, 2019

42.cx, artificial intelligence, Austria, fraud, sec

The Securities and Exchange Commission today charged the founder and former chief executive of a Silicon Valley startup with defrauding investors in Jumio, a private mobile payments company. The former…

What US regulators are prioritizing for institutional crypto

April 2, 2019

Blockchain, Technology

CFTC, cryptoassets, DLT, DTCC, Jennifer Peve, sec

The increasing automation and digitization of markets are made up of many market tech trends, which are closely scrutinized by US regulators. Two recent events are worth noting for the…

US mutual fund and ETF seclending data causing trouble already (Premium)

February 14, 2019

Securities Lending

ETF, mutual fund, sec, Securities Lending, topstory

The US Securities and Exchange Commission meant well when it mandated that all US closed end and open end mutual funds, and ETFs and Variable Annuities, report their securities lending…

Why US banks are getting fined for ADR violations (Premium)

January 3, 2019

Securities Lending, Tax

ADRs, pre-release, sec, Securities Lending, topstory

The US SEC fined J.P. Morgan last week $135 million for “improper handling of ADRs”, following a $54 million fine against BNY Mellon earlier in the month. The SEC has…

The SEC’s proposed ETF rules help ETF market makers but hurt securities lenders (Premium)

October 1, 2018

Liquidity Management, Operations, Securities Lending

ETFs, market makers, sec, Securities Lending, topstory

A new proposed regulation from the US Securities and Exchange Commission (SEC) will make the ETF market more efficient while predictably creating new winners and losers, in this case market…

SEC finds US Mizuho traders disclosed client info, despite 99.8% algo execution

July 24, 2018

Mizuho, sec

The Securities and Exchange Commission charged the US arm of Japanese investment bank Mizuho Securities for its failure to safeguard information pertaining to stock buybacks by its issuer customers. During a…

Deutsche Bank to Pay Nearly $75 Million for Improper Handling of ADRs

July 23, 2018

Alex Tonhazy

ADR, DBTCA, sec

Washington D.C., July 20, 2018 — The Securities and Exchange Commission today announced that two U.S.-based subsidiaries of Deutsche Bank AG will pay nearly $75 million to settle charges of…

SEC panelists: MiFID II not useful for credit markets yet and likely to get more complex (Premium)

July 18, 2018

Europe, Regulatory

credit, Fixed Income, MiFID II, sec, topstory

Speaking at the SEC Fixed Income Market Structure Advisory Committee on Monday, several panelists noted that while MiFID II has introduced a new innovation in pre-trade transparency, in practice this…

SEC opts for narrative over quantitative fund liquidity disclosures

June 29, 2018

The Securities and Exchange Commission adopted amendments to public liquidity-related disclosure requirements for certain open-end funds. Under the amendments, funds would discuss in their annual or semi-annual shareholder report the…

SEC proposes changes to public liquidity risk management disclosure

March 14, 2018

liquidity risk, mutual funds, sec

The Securities and Exchange Commission today proposed amendments to public liquidity-related disclosure requirements for certain open-end investment management companies. Under the proposal, funds would discuss in their annual report the…

SEC charges Voya subsidiaries for securities lending violations

March 9, 2018

sec, securities lending violations, Voya Advisers

The Securities and Exchange Commission today charged two investment adviser subsidiaries of Voya Holdings with failing to disclose conflicts of interest and making misleading disclosures in connection with their practice…

SEC warns on digital asset on-line platforms

March 8, 2018

cryptocurrency, sec

Online trading platforms have become a popular way investors can buy and sell digital assets, including coins and tokens offered and sold in so-called Initial Coin Offerings (ICOs). The platforms…

NLR: Analysis of SEC data reporting delay on cyber fears

December 14, 2017

News and Notes, Uncategorized

cybersecurity, Form N-PORT, National Law Review, regulatory reporting, sec

The Securities and Exchange Commission (SEC) announced on December 8, 2017, that it would postpone the compliance date for filing new reports on Form N-PORT— one of the SEC’s new…

SEC approves DTCC’s $74 billion liquidity facility

November 20, 2017

Capped Contingency Liquidity Facility, DTCC, sec

The SEC has approved DTCC’s Capped Contingency Liquidity Facility (CCLF), which creates overnight repos between FICC and each of DTCC’s solvent firms so that, if a firm fails, the funding…

Interfund lending: are repos the right way to get this done?

November 20, 2017

Liquidity Management, Repo

Barron's, interfund lending, Liquidity, Repo, sec, topstory

An article in the November 11, 2017 Barron’s discussed the idea of interfund lending. In “When Funds Lend to One Another,” the author notes that “interfund lending by fund companies…

Reuters: new SEC committee to scrutinize bond markets

October 30, 2017

FIMSAC, sec

The SEC has taken the first step in formally establishing an advisory committee to scrutinize the rules of the fixed income market and advise on potential reforms, according to a…

Bank incumbents still have the upper hand because of disruptive technology

October 17, 2017

Blockchain, Fintech, Regulatory, Technology

capital markets, disruption, fintech, sec, US Senate

Who is winning the digital disruption contest in capital markets? The Economist recently published an article examining price to earnings ratios (PE) for companies and market segments that have been…

SEC Chairman Clayton issues statement on cybersecurity

October 12, 2017

cyber security, cybersecuirty, sec

October 2, 2017 SEC Chairman Jay Clayton today issued a statement highlighting the importance of cybersecurity to the agency and market participants, and detailing the agency’s approach to cybersecurity as…

Reuters: SEC chair floats potential delay to fund data rules following hack

October 5, 2017

cyber security, sec

The chairman of the SEC has floated a possible delay to new investment fund data gathering rules following a hack that has raised questions over the regulator’s cyber security controls.…

Big Data, little lies, big problems – how Big Data can manipulate algorithmic trading

August 21, 2017

Big Data, Market infrastructure, Regulatory, SEC, Technology

Big Data, compliance, Regulatory, sec

Add a new stock manipulation concern to the list: Big Data. Every piece of information mined out of Big Data by algo systems is suspect, and subject to hacking and…

The SEC report on liquidity and regulations: its a complex story, not a done deal

August 15, 2017

Investments, Liquidity Management, Regulatory, SEC, US

Liquidity, sec, topstory, US Treasuries, Volcker Rule

The headlines say that the SEC reports little damage to liquidity from regulations, and this is going to influence both government and public opinion going forward. But the SEC measured…

SEC weighs in on DAOs – yes digital tokens are indeed securities

August 14, 2017

Bitcoin, Blockchain, Derivatives, Fintech, Market infrastructure, Regulatory, SEC, Securitization, Technology, US

blockchain, cryptocurrencies, DAO, Ethereum, sec

In what may be a seminal ruling, the Securities and Exchange Commission (SEC) has said that a so-called digital token qualifies as a security under the Securities Exchange Act of…

Taxation, transparency and blockchain

March 21, 2017

Bitcoin, Blockchain, Derivatives, Regulatory, SEC, Tax, US

bitcoin, blockchain, IRS, OTC derivatives, Regulatory, sec, topstory

Last week brought two pieces of news that focus attention on some of the regulatory challenges that blockchain-based public markets are up against. This has direct implications for trading in…

SEC Establishes Supervisory Cooperation Arrangement With Hong Kong SFC

January 23, 2017

Hong Kong, Hong Kong SFC, sec, SFC, US, US SEC

Washington D.C., Jan. 19, 2017 — The Securities and Exchange Commission today announced that it has established a comprehensive arrangement with the Hong Kong Securities and Futures Commission (SFC) as…

Monday Regulatory Roundup: asset managers and indemnification; limiting regulatory rule making; level playing fields in Europe (Premium)

January 16, 2017

Basel III, Dodd-Frank, Europe, SEC, US

CFTC, ESMA, FSB, sec, topstory, UCITS

Last week brought some sharp edged regulatory updates, both fair and unfair in our view. In this edition of Regulatory Roundup, we analyze what the Financial Stability Board’s recommendations on…

US House passes SEC Regulatory Accountability Act to slow down rule making

January 13, 2017

House of Representatives, sec, US

SEC Regulatory Accountability Act This bill amends the Securities Exchange Act of 1934 to direct the Securities and Exchange Commission (SEC) to: before issuing a regulation under the securities laws,…

SEC fines broker-dealer for Reg SHO violations

January 11, 2017

Reg SHO, sec

ORDER INSTITUTING ADMINISTRATIVE AND CEASE-AND-DESIST PROCEEDINGS, PURSUANT TO SECTIONS 15(b) AND 21C OF THE SECURITIES EXCHANGE ACT OF 1934 AND NOTICE OF HEARING From at least November 2011 through May…

WSJ: SEC Commissioner Says Dodd-Frank Rules Not a Priority

January 9, 2017

Michael Pikowar, the Securities and Exchange Commission’s sole Republican member, said the SEC won’t prioritize any rules required by the Dodd-Frank financial law but could advance other measures when he…

Our analysis of the SEC's new securities lending disclosure rules for mutual funds (Premium)

October 19, 2016

Investments, Regulatory, SEC, US

ETFs, modernization, mutual funds, sec, Securities Lending, topstory

The US Securities and Exchange Commission (SEC) released its final rules on October 13, 2016, modernizing reporting and liquidity disclosures for mutual funds, ETFs and similar registered investment companies. We analyze the…

US Regulators issue statement on progress of analyzing the U.S. Treasury Market Structure since the July 2015 Joint Staff Report

August 2, 2016

CFTC, Federal Reserve, sec, US, US Treasuries

The U.S. Department of Treasury, the Board of Governors of the Federal Reserve System, the Federal Reserve Bank of New York, the U.S. Securities and Exchange Commission, and the U.S.…

SEC Adopts Additional Rules Related to Security-Based Swap Transaction Reporting

July 14, 2016

sec, Swaps

Rules Increase Transparency in the Securities-Based Swap Market 2016-139 The Securities and Exchange Commission today announced that it has adopted amendments and guidance related to rules regarding the regulatory reporting…

Bloomberg: EU, U.S. Race to Spare Banks $5 Billion Clearing Capital Hit

May 18, 2016

DTCC, European Commission, OCC, sec

European Union and U.S. financial regulators are racing to agree on a plan to prevent billions of dollars in capital requirements from hitting banks’ trades in stock options and other…

Comment letters on the SEC's proposed rules for limiting leverage in registered funds (Premium)

April 28, 2016

Derivatives, Investments, Regulatory, SEC, US

18f-4, Leverage, liquid alterantives, mutual funds, sec, Swaps, topstory, VaR

In December 2015, the US Securities and Exchange Commission proposed rule 18f-4 limiting the amount of leverage that registered funds could use. Funds could either use a portfolio limit of…

Fund Board Views: SEC subpeonas funds on securities lending recall practices

April 27, 2016

mutual funds, sec, Securities Lending

The Securities and Exchange Commission’s Enforcement Division has begun serving subpoenas to mutual fund firms affiliated with insurance companies to gain information about the recall practices within their securities lending…

SEC fines Goldman Sachs $15m for stock locate violations

January 14, 2016

January 14, 2016 at 2:05 PM The Securities and Exchange Commission today announced that Goldman, Sachs & Co. has agreed to pay $15 million to settle charges that its securities…

Will regulators take aim next at fund managers and liquidity management?

October 15, 2015

Regulatory, Risk Management, Systemic Risk

BGI, Blackrock, fund management, IMF, sec, topstory

One of the talking points by the Fed and others on market illiquidity has been on how mutual funds, especially opened ended ones, and ETFs create issues when investors sell…

The SEC wants to make sure mutual funds and ETFs are liquid for investors. This isn’t going to be as simple as it sounds.

September 24, 2015

Investments, Regulatory, Risk Management, SEC

ETF, Liquidity, mutual funds, sec, topstory

The SEC has proposed rules to insure liquidity at mutual funds and exchange traded funds (ETFs). This all sounds good, but making it work will be another matter. The press release, dated…

SEC Proposes Rules to Modernize and Enhance Information Reported by Investment Companies and Investment Advisers

May 21, 2015

sec

Washington D.C., May 20, 2015 — The Securities and Exchange Commission today proposed rules, forms and amendments to modernize and enhance the reporting and disclosure of information by investment companies…

OFR looks at data transparency in securities financing: there is still a lot of work to do

April 28, 2015

Big Data, Dodd-Frank, Federal Reserve, Financial Stability Board, Market infrastructure, Primary Dealers, Repo, Securities Lending

Dodd-Frank 984(b), Legal Entity Identifier, LEI, sec, topstory

The Office of Financial Research (OFR) published a report “Repo and Securities Lending: Improving Transparency with Better Data” (April 23, 2015) written by Viktoria Baklanova. There paper makes some interesting…

The SEC’s ADV data: hedge fund edition (Premium Content)

April 23, 2015

Hedge Funds, Investments, SEC, US

asset managers, Form ADV, Form PF, hedge funds, sec, topstory