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 Private Fund Adviser Rules: Tackling the Dos, Don’ts, and Maybes
The US Securities and Exchange Commission’s new rules for private fund advisers are meant to increase transparency for investors, but they will also increase operational pain and cost for compliance managers even more, fund executives tell FinOps Report. Although the SEC has eliminated some of the more controversial provisions for the estimated US$22.6 trillion dollar […]
SEC Tells Mutual Fund Industry: Lost Accountholders Matter
Compliance directors at US mutual fund transfer agents and US mutual funds will have to follow the US Securities and Exchange Commission’s rules to a T and they will have more administrative work on their hands to inform investors about the perils of escheatment of unclaimed or “lost” accounts, based on the US Securities and […]
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 […]
EquiLend, Prime Brokers Settle Sec Lending Antitrust Lawsuit
E-trading platform for securities lending EquLend has agreed to pay pension funds and others part of a whopping $500 million and to revamp its governance policy to settle an antitrust class-action lawsuit which includes prime brokers Goldman Sachs, Morgan Stanley, JP Morgan Chase and UBS. The plaintiffs in the case led by the Iowa Public […]
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 […]
Industry Squeezes SEC on Sec Loan Reporting
Wall Street continues to turn up the heat against the US Securities and Exchange Commission’s proposal for transaction reporting on securities loans, citing its contradictory analysis on short position and short activity reporting as well as potential operational shortcomings. The SEC recently reopened the comment period for its proposed securities loan reporting plan to adopt […]
What’s a CUSIP Worth? Over US$1B in Class Action Win
If you think you have been fleeced by CUSIP Global Services and others for paying licensing fees for nine-digit alphanumeric identification codes for US securities you might be entitled to a chunk of at least US $1 billion in compensation if a jury decides you’re right. All you must do is be part of an […]
Europe’s CSDR: Fund Managers Monitor Settlement Fails
Operations managers at fund management firms are scrambling to improve how they monitor settlement fails and prevent penalties imposed by their custodian banks just around the corner as mandated under Europe’s Central Securities Depository Regulation (CSDR). A dozen European fund management firms,who spoke with FinOps Report on condition of anonymity, say they are spending more […]