The recent implosion of family office Archegos Capital Management should renew interest in counterparty risk management and the need for a holistic program, say some broker-dealer risk management experts. By JP Morgan’s estimates the fallout may have cost some prominent prime brokers, such as combined as much as US$10 billion in trading losses. Archegos’ betting […]
New FX Benchmark Aims to Save Buy-Side Big Bucks
Are we getting the best foreign exchange conversion rate? Pension plans and other asset owners asking their fund managers that question might hear a resounding yes, but that’s not always the case as highlighted during the COVID-19 pandemic. Not all benchmarks are created equal, according to London-based Raidne, which claims it has come up with a […]
Citi’s $900M Blunder Casts Light on Poor Loan Ops
A New York judge’s recent ruling that lenders to financially ailing cosmetics giant Revlon can keep US$500 million in payments they mistakenly received from Citibank is prompting operations managers of syndicate loan desks at rival banks to take a closer look at their technology, internal procedures and any offshore work. Citibank is considered an anomaly […]
Registered Investment Funds 2021: New Derivatives Risk Program
For US traders, risk managers, portfolio managers, and boards of directors of registered fund management firms trading in derivatives, 2021 will be the year they figure out which derivatives to trade and how many to trade for more reasons than just making higher investment returns. Complying with the Securities and Exchange Commission’s new rule 18f-4 […]
SEI Loses Antitrust Suit Against SS&C; Use of Geneva Stands
Fund administrator SEI Global Services has lost a legal battle against SS&C Technologies for violating US antitrust regulations, but it appears to have won the critical legal war necessary to ensure the fund administrator can continue using SS&C’s Advent Geneva portfolio accounting system to service its alternative fund clients. On October 23, 2020, Judge Chad […]
Fund Middle Office 2021: Year of Fair Valuation
Middle-office accounting managers at US fund management firms will likely be talking a lot more in 2021 with C-level management, third party valuation agents, and boards of directors to figure out just what the terms fair and material mean when it comes to pricing non-exchange traded assets in their portfolios following the Securities and Exchange […]
Wells Fargo’s Comp Plan: Will SEC’s Ops Rules Hurt Investors?
The US Securities and Exchange Commission’s plan for how investors in Wells Fargo’s stock will be compensated a total of US$500 million for the bank’s past wrongdoing could end up marred in operational snafus making it harder for some investors to be paid and disincentivizing others from filing the paperwork to collect any compensation. That’s […]
SEC Fines Northern Trust for Not Stopping Criminal Hedge Fund Manager
The US Securities and Exchange Commission’s recent US$152,553 fine against mega hedge fund administrator Northern Trust provides a clear sign the regulatory agency will continue to hold a service provider accountable for any wrongdoing committed by its client if the SEC thinks it could have prevented the bad apple’s actions. The New York headquartered L-R […]
FREE WEBINAR: Outsourced and Supplemental Trading: How the Buy Side is Benefitting Today
Sponsored by Tourmaline Partners Save the Date: Thursday, October 15, 2020 Time: 10AM EST Go to www.tourmalinepartnersllc.com/finops-report-webinar to register for the free dial-in details Join Tourmaline Partners and FinOps Report for a free webinar on how the buy-side is benefitting from outsourced and supplemental trading. Access to liquidity, cost rationalization, operational efficiency, regulatory compliance, and […]
Fair or Not: Fund Managers Face SEC’s New Valuation Rule
Registered investment advisers might find it operationally a lot harder and a lot more expensive to value hard-to-price assets held by mutual funds if the US Securities and Exchange Commission’s proposed modernization of fund valuation practices is adopted. Appointing a chief valuation officer could become necessary to handle the laundry list of new requirements. The […]