sec

Form ADV, Form PF, hedge funds, sec

The Securities and Exchange Commission staff today published an expanded suite of data and analyses of private fund statistics and trends. The Private Funds Statistics, released quarterly since October 2015…

SEC gives brokers with Fully Paid Lending programs six months to ensure compliance

October 28, 2020

No Action letter to SIFMA: Your staff has brought to our attention that a number of broker-dealers are operating programs in which they borrow fully paid and excess margin securities…

SEC enacts new rules for derivatives on registered funds including limits and VaR

October 28, 2020

derivatives, ETFs, mutual funds, sec, VaR

The Securities and Exchange Commission today voted to enhance the regulatory framework for derivatives use by registered investment companies, including mutual funds (other than money market funds), exchange-traded funds (ETFs)…

SEC proposes to apply Reg ATS to electronic fixed income markets including repo

September 28, 2020

Fixed Income, Reg ATS, Repo, sec

The Securities and Exchange Commission today announced a proposal to enhance the operational transparency, system integrity, and regulatory oversight for alternative trading systems (ATSs) that trade government securities as well…

OCC says banks can hold stablecoin reserve deposits

September 24, 2020

cryptocurrencies, Office of the Comptroller of the Currency, sec, stablecoins

In an interpretative letter, the US Office of the Comptroller of the Currency (OCC) addressed the authority of a national bank to hold deposits that serve as reserves for certain…

Revenues and Expenses of US Mutual Funds and ETFs in Securities Lending

July 15, 2020

SEC, Securities Lending, Webinars

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

Finadium presented our analysis of US mutual fund and ETF fund filings in securities lending for calendar year 2019, covering annual reports, Statements of Additional Information, and forms N-CEN and…

SEC Charges BNP Paribas with Violations of Regulation Sho

June 30, 2020

BNPP, Reg SHO, sec

The Securities and Exchange Commission today announced settled charges against BNP Paribas Securities Corp. (f/k/a BNP Paribas Prime Brokerage Inc.), a New York-based broker-dealer, for loaning securities to a customer…

SEC Enhances Standards for Critical Market Infrastructure

April 10, 2020

Financial Market Infrastructure, sec

The Securities and Exchange Commission yesterday adopted amendments to its rules for securities clearing agencies to apply enhanced standards to all SEC-registered central counterparties and central securities depositories. The rule…

SEC issues temporary rules allowing mutual funds to borrow funds from affiliates and to make collateralized loans

March 24, 2020

coronavirus, mutual funds, sec

The current outbreak of coronavirus disease 2019 (COVID-19) has disrupted activities around the world. In light of the current situation, we are issuing this Order providing exemptions from certain requirements…

SEC approves new OCC capital management policy

January 29, 2020

capital management, CCPs, OCC, sec

OCC, the world’s largest equity derivatives clearing organization, announced that it received regulatory approval of its new capital management policy by the U.S. Securities and Exchange Commission (SEC). “We appreciate…

Problems with US SEC filings on securities lending: the case of BMO Global Asset Management

January 9, 2020

Investments, SEC, Securities Lending

BMO GAM, Dreyfus, mutual funds, sec, Securities Lending, topstory

US mutual fund and ETF filings on securities lending with the US Securities and Exchange Commission continue to be a mix of spot-on accurate and decidedly off-beat. They can require…

SEC issues new rules for uncleared Security-Based Swaps

December 18, 2019

sec, security-based swaps

SEC Adopts Actions to Stand Up Security-Based Swap Regulatory Regime The Securities and Exchange Commission today adopted a package of rule amendments, guidance, and a related order to expand and…

SEC’s Dalia Blass speaks on affiliated securities lending

December 10, 2019

affiliated lending, mutual funds, sec, Securities Lending

Keynote Address — 2019 ICI Securities Law Developments Conference Dalia Blass Director, Division of Investment Management Washington D.C. Dec. 3, 2019 Affiliated Securities Lending As we work to modernize asset…

US agencies join global regulatory sandbox spearheaded by FCA

October 24, 2019

CFTC, FDIC, GFIN, OCC, sec

The Commodity Futures Trading Commission (CFTC), Federal Deposit Insurance Corporation (FDIC), Office of the Comptroller of the Currency (OCC), and the Securities and Exchange Commission (SEC) announced joining the Global…

Where does the SEC stand on no action letters for asset managers in securities lending? (Premium)

October 7, 2019

SEC, Securities Lending, US

asset managers, no action letters, sec, Securities Lending, topstory

We recently spoke with the US Securities and Exchange Commission (SEC) on their thinking about issuing no action letters for asset managers to launch their own direct or affiliated securities…

SEC Publishes Recordkeeping and Reporting Requirements for Security-Based Swap Dealers, Major Security-Based Swap Participants, and Broker-Dealers

September 19, 2019

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

Jonathan Cooper

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