For brokerage trade operations, compliance and IT managers, giving fund managers a lot more details about where and how their trades were executed to fulfill the US Securities and Exchange Commission’s enhancements to Rule 606 could turn into a major operational headache. At issue is how much data broker-dealers have readily available, how much they […]
FINRA’s TBA Margin Rules: Stuck in Government Limbo
(Editor’s update 1/31/2019) The Financial Industry Regulatory Authority has decided to give collateral operations and compliance managers a temporary break from complying with new margin requirements for covered agency transactions. FINRA has filed with the Securities and Exchange Commission a request to extend by an extra year to March 25, 2020 the implementation date of […]
Reg Compliance 2019: Tips to Ease Data Pain
When it comes to handling the data challenges inherent in regulatory compliance, 2019 will no exception for middle and back-office buy and sell-side operations, compliance and technology managers. While the rules of MIFID II and EMIR likely took up much of their attention over the past few years, a survey of about fifty operations, compliance […]
Treasury Operations: From Basics to Optimal
Where are my cash and securities and am I achieving the best bang for the buck? Treasury management staffers at hedge fund management shops are belatedly realizing that the difference between either knowing or not knowing the answer to the interrelated questions could translate into the difference between average and higher investment performance. The savviest […]
SEC To CEOs: Keep Track of Chief Compliance Officers
Chief compliance officers at US broker-dealers had better get used to answering a lot more questions from their chief executive officers about how well they are doing their jobs. The US Securities and Exchange Commission has just sent brokerage CEOs a subtle warning: we could hold you legally liable for failing to supervise your chief […]
FINRA: Customer Protection Applies to Digital Assets
The US Financial Industry Regulatory Authority could soon be offering broker-dealers some badly-needed guidance on how they should handle cryptocurrencies and similar products. Industry sources tell FinOps Report that FINRA is in discussions with the Securities and Exchange Commission’s Department of Trading and Markets about FINRA crafting a regulatory notice informing broker-dealers how to apply […]
BofAML’s Fake Trade Reports: Governance Breakdown?
How could Bank of America Merrill Lynch get away with giving institutional customers phony trade execution, transaction cost analysis and expense reports for five years? Ten brokerage operations and IT managers contacted by FinOps Report can only speculate after reading the scant details in separate settlement reports issued by the Office of the Attorney General […]
Cryptocurrency: Next Frontier for Cost-Basis Reporting
US personal tax day, April 17, was either the beginning of a lot of heartache or overdue operational relief for investors in cryptocurrency. Investors who haven’t paid the right amount of taxes for profits earned during the cryptocurrency boom could face fines and audits from the Internal Revenue Service. Alternatively, they could also benefit from […]
FINRA Rule 4210: Managers Beware of Margin Calls
With less than 100 days left before new Rule 4210 of the Financial Industry Regulatory Authority becomes effective, broker-dealers aren’t the only ones that should be preparing for new margin requirements for to-be-announced (TBAs) transactions and other forward settling fixed-income trades. Even if indirectly, investment management firms will also be in the regulatory crosshairs. Time is […]
FINRA New Ops Certification: Two Exams Better?
What is the difference between a stock, a bond, a derivative, an exchange-traded fund and other financial products? What are customer suitability rules, margin rules and custody rules? These might sound like simple questions, but for US brokerage operations managers who must abide by changes in test formats imposed by the US Financial Industry Regulatory Authority […]