Thursday, February 04, 2016

OFR Publishes Repo Survey Results. Calls for Better Data Standards.

The Office of Financial Research released results of its survey of the bilateral repo markets.  The report, "The U.S. Bilateral Repo Market: Lessons from a New Survey,” provides aggregate statistics on U.S. dealers’ bilateral repo agreements and economically equivalent securities lending activities. The data for three "snapshot" dates in 1Q2015 were collected from the U.S.-affiliated securities dealers of nine bank holding companies as part of a voluntary pilot program run by the OFR and the Fed with input from the Securities and Exchange Commission.

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Thursday, January 28, 2016

OFR Report Highlights Unintended Consequences of Swaps CCPs

On January 27, 2016, the Office of Financial Research (OFR), an arm of the Treasury Department created under the Dodd-Frank Act, issued its fourth annual report to Congress. The report highlights the results of OFR research, risks to financial markets, and OFR priorities for the coming year. Notable among its findings, the report suggests that reforms mandating central counterparties in the formerly OTC swaps market could unintentionally increase systemic risk in the long run rather than reducing it.   

Number of views (83)

Wednesday, January 20, 2016

Software Bug Leads to SEC Censure

On January 14, 2016, the SEC announced that a large U.S. broker dealer had agreed to settle charges that its securities lending practices violated federal securities regulations.  According to the SEC’s order, the dealer violated Regulation SHO by providing "locates" to customers without an adequate review as to whether the securities could be borrowed reasonably at settlement. As a result, some customer short sales may have been executed improperly.

Number of views (117)

Tuesday, January 19, 2016

Pushback on SEC Liquidity Proposals

The Securities and Exchange Commission’s September 2015 rule proposals addressing mutual fund liquidity issues have not been received with great enthusiasm by the fund industry.  Some major players have made it quite clear in their comment letters that they feel the SEC has missed the mark with this proposal.  

Number of views (122)

Tuesday, January 12, 2016

Flash Crash Suit Against Congress and the SEC Goes Up in Smoke

Angry investor Clyde Calvin Grady II has had his day in court. In a November 2015 ruling, the U.S. Court of Claims dismissed Grady’s suit against Congress and the Securities and Exchange Commission alleging that, by failing to prevent the 2010 “Flash Crash,” the SEC had breached an implied contract with investors. 

Number of views (96)
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