Search Results for keywords:"risk management"

The Depository Trust Company (DTC) has proposed a plan to raise up to $3 billion through the issuance of senior notes, a type of debt, to strengthen its liquidity resources. This is a part of their strategy to ensure they have enough funds to complete financial settlements even if a major participant fails to meet their obligations. By diversifying their sources of liquidity, they aim to reduce dependency on current credit facilities and manage financial risks better. The Securities and Exchange Commission (SEC) is seeking public comments on this proposal.

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 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for market makers by introducing features like automated trading, risk controls, and a mechanism to prevent trading at outdated prices.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 has approved rule changes proposed by ICE Clear Credit LLC, a clearing agency for Credit Default Swap (CDS) contracts, to update its End-of-Day Price Discovery Policies and Procedures. The changes aim to improve ICC's price discovery process by clarifying the definitions of terms like Most-Actively-Traded-Instrument and bid-offer widths, refining methodologies for accurate end-of-day pricing, and increasing transparency by publishing prices for all eligible instruments. These revisions are consistent with regulatory requirements, intended to ensure accurate pricing and risk management, and to provide reliable data for participants and the market.

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 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.

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.

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 Federal Deposit Insurance Corporation (FDIC) is withdrawing its proposed rules related to brokered deposit restrictions, corporate governance, and the Change in Bank Control Act. These proposals, published in 2023 and 2024, aimed to revise existing regulations but faced issues like being overly complex, conflicting with state laws, and potentially discouraging investments in banks. If the FDIC decides to take regulatory action on these matters in the future, it will announce new proposals.