(Editor’s Note: After the publication of this article, DTCC published a document which outlines the testing requirements from its subsidiaries NSCC, DTC and Omgeo for impacted organizations and instruments. The paper entitled “T+2 Test Approach: DTCC’s High-Level Testing Framework” can be found here). Testing, testing, testing. That is the next critical focus for achieving a successful transition […]
Investment Fund Transfer Agents: Forget About Monitoring Brokers
The US Securities and Exchange Commission has the right intention in wanting to update its outdated rules for transfer agents, say investment funds transfer agents and their legal counsel, but its approach in regulating shareholder recordkeepers of buy-side firms may be flawed. Among the growing list of concerns is whether investment fund transfer agents might […]
Syndicated Loans Market: An Evolution is Coming
Nineteen days and counting. That’s the average time it takes to settle a US syndicated loan. It’s a far cry from the two or three days for other asset classes, but fund managers, broker-dealers, agent banks and even regulators are waking up to the fact the gap must be closed to reduce risks and costs. […]
FINRA’s TBA Margin Rule: No Meeting of Minds with Industry
The pleas of fund managers and broker-dealers for the Financial Industry Regulatory Authority (FINRA) to change proposed rules requiring the collateralization of agency mortgage-backed securities and other transactions are falling on deaf ears and time is running out. The SEC is requiring that final comments on FINRA’s new proposal published last month be submitted by […]
Mutual Funds to SEC: We Can’t Swing Prices
When proposing new rules, the US Securities and Exchange Commission often plays catch-up to the changing technological or market times. Not so when it comes to the practice of swing pricing, part of its new proposed rules for liquidity management.by US registered investment funds. Nothing short of a revolutionary change in operational capabilities would be needed […]
US Registered Funds: Say Hello to Derivatives Risk Managers
Must have knowledge of derivative products, risk management, compliance procedures, technology implementation and project management. An MBA or graduate degree in financial engineering is required. A certified financial analyst designation is preferred. Those are the likely employment requirements for the derivatives risk manager that many US registered investment funds will have to hire if the Securities and Exchange Commission […]
Fund Transfer Agents: SEC Toughening the Rules
Providers of shareholder recordkeeping services for US mutual funds and non-equity accounts could soon face more regulatory oversight if the US Securities and Exchange Commission has its way. The SEC’s lengthy concept release issued late last year suggests that the US regulatory agency wants rules to keep up with the changing times. To that end, […]
US T+2 Playbook: Rush to Affirmation
Make certain your trades are affirmed as quickly as possible. (And fix your T+2 failures now, rather than later). Speeding up affirmations is one of dozens of recommendations operations and technology managers at fund management, broker-dealer and custodian banks will find if they read through the 164 pages of an implementation playbook just issued by […]
US Post-Trade Matching: Omgeo, Bloomberg or SS&C?
The mundane world of post-trade matching just got a long-awaited shakeup. What has been a virtual monopoly in the post-trade matching market is about to become a horse race, since the US Securities and Exchange Commission has approved Bloomberg and SS&C Technologies to enter the business of post-trade matching services in competition with incumbent Omgeo. In allowing […]
US Anti-Bribery Corruption Laws: Guilty Until Proven Innocent?
Know-your-customer isn’t the only motto financial firms should live by. The US Securities and Exchange Commission has put human resource, compliance and risk departments of financial institutions on high alert that they have to know a lot more about candidates for internships and employment, as evidenced in a recent multimillion dollar penalty paid by BNY […]