Chills typically precede colds or fevers, which can be treated through medication. But when the chills are related to cancellation of settlement and other services by the US market infrastructure Depository Trust & Clearing Corp. (DTCC), they can be as deadly as the Bubonic plague, say critics, who are now battling the efforts of its […]
Not in the CARDS? US Clearing Brokers Protest Customer Reporting
A new reporting plan designed to flag possible misbehavior by US brokers, is drawing backlash from their back-office correspondent clearing firms responsible for complying. Their complaints? They run the gamut from the overwhelming costs and liabilities involved in following new rules to questions of how the Financial Industry Regulatory Authority (FINRA) is going to manage the flood of data […]
New Swaps Clearing Rules Trigger Services Shakedown
Brave new ideas, especially when they are mandated by regulators, typically trigger a messy shakedown of systems and services — out with the old, in with the new with a lot of cost and waste lying by the roadside for others to benefit. Such is the case with the multi-faceted regulatory drive to squeeze potential systemic risk out […]
SEC Attacks Systemic Risk Through Big Clearing Agencies
More collateral, more risk-related metrics and possibly higher fees for participants. That’s what banks, broker-dealers and even their fund manager customers might face should the US Securities and Exchange Commission’s new oversight rules for six large systemically important market infrastructures be implemented. Four years after the US adopted the Dodd-Frank Wall Street Reform Act, the SEC has finally come up […]
T+2: Coming to US Fund Managers
How much difference can it make that a US trade group representing mutual fund advisors adds its support to longstanding efforts by the Depository Trust & Clearing Corp. to move the US to a two-day settlement cycle? Enough to make it clear that the ball is now rolling, and deadlines are being considered. The […]
Harmonizing European Depositories May Be a Bumpy Ride
In trying to harmonize the operations of European securities depositories, regulators may well be creating unintended operational and financial burdens for the settlement houses and their members in dealing with trades which fail to settle on time. “The shorter timetable for settlement and the fines for late settlement will be far more difficult to implement […]
Russia: Is the NSD Coming in from the Cold?
With Russia’s regulatory and settlement infrastructure on the mend, foreign fund managers appear to be slowly forgiving the market’s past indiscretions and giving Moscow its long-awaited international stature. Granted, Russia has a long way to go before it can match the likes of its more established peers across the globe. Settlement delays, stolen securities, uncertainty […]