Search Results for keywords:"risk management"

The Environmental Protection Agency (EPA) has completed a final risk evaluation under the Toxic Substances Control Act (TSCA) for formaldehyde, finding that it poses an unreasonable risk to human health. This risk includes both non-cancer effects from short-term skin and inhalation exposure and cancer risks from long-term inhalation exposure. The EPA is required to initiate risk management actions to address these risks. The decision was made based on comprehensive scientific studies and evaluations.

The Securities and Exchange Commission (SEC) is reviewing a proposal by the Fixed Income Clearing Corporation (FICC) to modify the calculation of the VaR (Value at Risk) Floor for its Mortgage-Backed Securities Division. The change aims to incorporate a "Minimum Margin Amount" to better account for market volatility and ensure adequate risk management. This proposal was developed after the COVID-19 pandemic revealed that the existing calculations did not sufficiently cover risks, particularly during periods of extreme market changes, and the SEC is inviting public comments on this advance notice. The proposed enhancements are designed to limit FICC's exposure by ensuring that its systems account for recent and more volatile market conditions.

The Securities and Exchange Commission approved a rule change proposed by the Options Clearing Corporation (OCC) to enhance its risk management systems. This decision aims to better capture risks associated with short-dated options, which have become more prevalent in financial markets. The changes involve aligning model assumptions and developing tailored volatility estimates for options with a short expiration period. Such improvements are intended to help OCC manage financial risks more effectively and ensure the protection of securities and funds in its care.

The Securities and Exchange Commission (SEC) has issued a statement and is seeking public comments on the safekeeping of digital asset securities by broker-dealers. They highlight the need for innovation in applying existing protection rules to digital assets, which have unique risks like fraud and theft. The SEC proposes a five-year period during which broker-dealers who follow specific guidelines won't face enforcement action if they can show they've taken reasonable steps to control and secure digital asset securities. This initiative aims to balance investor safety with the advancement of the digital asset market.

The document discusses the approval by the Securities and Exchange Commission (SEC) of proposed changes by ICE Clear Credit LLC (ICC) to its Clearing Participant Default Management Procedures. The changes aim to enhance the management of risks during a participant's default. They include provisions for convening remote meetings of the CDS Default Committee via teleconference if in-person meetings are not possible, updating default notification procedures to involve regulators, and clarifying the roles and responsibilities of key officers like the Chief Risk Officer (CRO) and Chief Compliance Officer (CCO). These updates are intended to improve the clarity, efficiency, and resilience of ICC's processes in handling defaults.

The Securities and Exchange Commission approved new rule changes proposed by the National Securities Clearing Corporation, The Depository Trust Company, and Fixed Income Clearing Corporation. These changes revolve around enhancing governance and reducing conflicts of interest within these organizations, ensuring directors and senior managers adhere to specified regulations. The approved framework includes mechanisms to manage conflicts of interest, risks from service providers, and to actively involve stakeholders in key decision-making processes related to risk management and operations. Ultimately, these changes aim to improve transparency and accountability in the operations of these financial clearing agencies.

The Securities and Exchange Commission has approved a proposed rule change from the Options Clearing Corporation (OCC) to enhance its stress testing scenarios. The OCC aims to elevate four existing Informational Scenarios to Sufficiency Scenarios, which will more rigorously test whether it has enough financial resources to cover potential losses during extreme market conditions. This change comes in response to market events observed in March 2020, including extreme price changes, and aims to ensure OCC can manage risks and maintain a stable financial environment in the options market. The Commission granted accelerated approval for these changes to ensure timely implementation and enhanced risk management capabilities.

The Federal Energy Regulatory Commission and North American Electric Reliability Corporation are holding a joint workshop on March 20, 2025, to discuss supply chain risk management (SCRM). The workshop will focus on verifying the accuracy of information from vendors during procurement to manage risks related to their software, hardware, or services. It will be held in a hybrid format at the Commission's office in Washington, DC, and will be open to the public for observation, either in person or virtually. Attendees can register to attend in person, while virtual attendance does not require registration.

The Department of Agriculture is seeking feedback on a new information collection requirement under the Paperwork Reduction Act of 1995. They are asking the public to comment on whether the collection is necessary, how accurate the burden estimate is, and ways to improve the collection process. The focus of the collection is on policies related to crop insurance managed by the Federal Crop Insurance Corporation (FCIC). The agency wants to ensure that the insurance programs are fair and beneficial to both farmers and taxpayers. Public comments on this matter are invited until February 26, 2021.

Cboe Exchange, Inc. has proposed a change to its rules to allow certain index options, known as expiring non-Volatility A.M.-settled index options, to be traded up until their settlement value is determined on the expiration date. Currently, these options stop trading the day before the expiration day, which increases overnight risk for investors. The change would allow more trading opportunities to manage risk efficiently, especially during night trading sessions. The proposed rule aligns the trading hours of Cboe's options with similar products from other exchanges, aiming to enhance trading flexibility and risk management for investors.