Search Results for keywords:"systemic risks"

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Search Results: keywords:"systemic risks"

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  • 2024-31177 — Regulations To Address Margin Adequacy and To Account for the Treatment of Separate Accounts by Futures Commission Merchants
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    Type:Rule
    Citation:90 FR 7880
    Reading Time:about 6 hours

    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.

    Simple Explanation

    The CFTC made a new rule that says when people want to take money out of their accounts with certain companies, they must have enough money left to cover important costs. Also, these companies can treat a person's different accounts as if they belong to different people, but only if they follow some rules.

  • 2021-01324 — Self-Regulatory Organizations; Fixed Income Clearing Corporation; Notice of No Objection To Advance Notice To Include Same-Day Settling Trades in the Risk Management, Novation, Guarantee, and Settlement Services of the Government Securities Division's Delivery-Versus-Payment Service, and Make Other Changes
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    Type:Notice
    Citation:86 FR 6724
    Reading Time:about 30 minutes

    In the Federal Register, the Securities and Exchange Commission (SEC) announced it has no objections to the Fixed Income Clearing Corporation's (FICC) proposal to enhance its system for settling trades in U.S. Treasury securities. The proposal includes expanding FICC's central counterparty services to cover both the start and end of same-day repurchase agreements known as "repos," which aims to reduce settlement fails and improve efficiency. Additionally, FICC introduced a Pair-Off Service to help members settle their failed obligations more efficiently, minimizing market risks by allowing them to resolve these by the end of each day. The changes are expected to support financial stability by reducing systemic risks and promoting effective risk management.

    Simple Explanation

    The SEC gave the green light to some changes by a company that helps make buying and selling government money stuff safer and faster, like making sure everyone gets what they agreed to on the same day, which is like making sure all toys are shared properly before bedtime.