Oversight of third-party vendors will soon take on a new human rights twist for many local and foreign financial firms doing business in the European Union thanks to the new Corporate Sustainability Due Diligence Directive. The European legislation, otherwise called CS3D, forces firms to impose a moral code of conduct on their direct and indirect […]
SEC Exams 2025: T+1 Post-Mortem?
T+1 settlement isn’t over for the US Securities and Exchange Commission. Chief compliance officers at US fund management firms and broker-dealers must be prepared to show how they are meeting the challenge of a one-day settlement cycle, otherwise known as T+1 settlement, if requested by an examiner from the SEC next year. The onus appears […]
SEC’s Short Sale Reporting Rule Comes Up Short
Fund management firms, soon required to report their short sale positions with the US Securities and Exchange Commission, could end up scrambling at the last minute to make the necessary operational changes while praying the regulatory agency agrees with their interpretations of some of its unclear requirements. Buy-side firms appear to be hoping the SEC […]
Time for US-Based Fund Managers to Join DORA Bandwagon
Europe’s pending Digital Operational Resilience Act (DORA) should prompt fund managers in the US to review their third-party service relationships even if the legislation’s cross-border impact is ill-defined, warn legal and other experts. Effective on January 17, 2025, DORA is Europe’s way of including more than just banks and insurance firms in multiple current regulations […]
SS&C: $890M At Stake in Legal Tussle With BNY Mellon
A longstanding dispute over a market data contract with SS&C Technologies, which could cost BNY Mellon up to a whopping US$890 million in damages, highlights the danger of intentionally violating or even misinterpreting a critical element of such an agreement– distribution rights. At issue is whether BNY Mellon had the right to distribute market data […]
NY’s New Cyber Law Shines Stronger Light on C-Level
C-level executives at most financial firms operating in New York will have one more reason besides the fear of a data breach to change their corporate governance for cybersecurity this year– New York State’s amended regulation. Electronic securities lending and borrowing platform EquiLend’s recent announcement it was the target of a ransomware attack followed New […]
US Treasuries Central Clearing: Fund Managers’ Juggling Act in 2024
US fund managers will be spending the new year preparing for the operational and legal challenges arising from central clearing of most secondary trades in Treasury cash and repurchase agreements now that the Securities and Exchange Commission has approved the phased move. The mandated switch to central clearing for many transactions in US Treasuries will […]
SEC’s Take on Predictive Data Analytics: A Failed Prediction?
Mindboggling isn’t a word often used when discussing proposals issued by the US Securities and Exchange Commission, but the latest one for registered investment advisers and broker-dealers about addressing conflicts of interest when using predictive data analytics (PDA) and PDA-like technology appears to be a notable exception. If adopted as drafted, the SEC’s requirement would […]
Will Wall Street Earn Windfall For US CUSIP ID Codes?
Data management, trading, post-trade operations and compliance managers at buy-side and sell-side firms might one day no longer have to worry about their organizations being forced to pay for US identification codes and could even celebrate their winning over US$1 billion in compensation from CGS and others. Judge Katherine Polk Failla of the Southern District […]
SEC’s Proposed New Custody Rule Fails Industry Litmus Test
Fund management and custodian operations and legal experts are warning the US Securities and Exchange Commission that its proposed changes to its custody rule, which requires registered investment advisers to select a qualified custodian to safeguard their assets, are far too impractical and costly. “The new proposed rule is contrary to existing business practice and […]