Search Results for keywords:"risk management"

The Securities and Exchange Commission is reviewing a proposed rule change by the Options Clearing Corporation (OCC) to enhance its methods for assessing the risks of short-dated options. The OCC plans to adjust how it aligns day-count conventions between option price smoothing and implied volatility scenarios and extend the term structure to better account for options with less than one month to expiration. These changes aim to improve the accuracy of margin and stress testing components, ensuring that the financial risks are well-managed. The rule also outlines the potential impacts on margin requirements and clearing funds, with slight increases expected for accounts with a high concentration of short-dated options.

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 Office of Personnel Management (OPM) and the Office of the Director of National Intelligence (ODNI) announced a Federal Personnel Vetting Core Doctrine to reform the process of vetting government employees. This document lays out the principles and priorities for evaluating the trustworthiness of federal workers, aiming to improve efficiency and promote mobility within the government workforce. The policy focuses on using risk management, data-driven improvements, and transparency to ensure fair and consistent vetting processes. The doctrine aligns with executive orders and will serve as a guide for government-wide and agency-specific policies.

The Commodity Futures Trading Commission (CFTC) has introduced a new rule requiring futures commission merchants (FCMs) to ensure customers maintain enough funds to meet initial margin requirements before allowing withdrawals. This rule also allows FCMs to treat separate customer accounts as if they belong to separate entities, under certain conditions, to manage risks effectively. The new rule aims to protect customer funds, prevent systemic risks, and ensure the integrity of financial markets. It extends existing requirements for margin management currently applicable through DCOs to FCMs who are not clearing members.

The Office of the Comptroller of the Currency (OCC) is inviting public comments on the renewal of an information collection related to "Market Risk," as part of its ongoing effort to reduce paperwork and respondent burden, in line with the Paperwork Reduction Act of 1995. According to this rule, national banks and federal savings associations with significant market risk exposure are required to adhere to specific guidelines for managing and disclosing this risk. Public comments on the necessity, accuracy, and ways to improve the information collection process are due by June 17, 2025. The OCC aims to ensure that these financial institutions maintain sufficient capital adequacy for their market risk level through these regulations.

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 Securities and Exchange Commission (SEC) has announced a proposed rule change submitted by The Options Clearing Corporation (OCC) to manage risks from intraday and overnight trading activity. This amendment, known as Amendment No. 3, introduces a new Intraday Risk Charge aimed at mitigating risks associated with rapidly fluctuating intraday trading volumes, particularly "zero-days-to-expiration" options. The rule aims to ensure that OCC's current risk management practices cover such trading activities and includes monitoring thresholds for issuing margin calls. The changes are designed to align with recent SEC rules and industry feedback, with implementation planned for September 2025. The SEC is seeking public comments on these proposed changes.

The Environmental Protection Agency (EPA) has issued significant new use rules (SNURs) for certain chemicals under the Toxic Substances Control Act (TSCA). These rules require companies to notify the EPA 90 days before manufacturing or processing these chemicals for any newly designated significant uses. The purpose is to allow the EPA to assess potential risks and take necessary actions before these activities start. Businesses that want to use these chemicals in a significant new way must submit a Significant New Use Notice (SNUN) and wait for EPA review and approval.

The Securities and Exchange Commission published a notice about a rule change proposed by the Investors Exchange LLC (IEX). IEX wants to establish rules for trading options on a new platform called IEX Options. This platform aims to enhance risk management for market makers by introducing features like automated trading, risk controls, and a mechanism to prevent trading at outdated prices. The SEC is inviting public comments on this proposal before making a final decision.

The Securities and Exchange Commission is reviewing a rule change proposed by Cboe Exchange, Inc. that would allow the creation of "future-option orders," combining futures and options in a single order. This change aims to simplify investing strategies involving both options and futures while reducing execution risks. However, the SEC is considering the implications, particularly concerning risk management measures and jurisdictional matters. Comments from the public are invited to assist in the decision on whether to approve or disapprove the proposal.