Search Results for keywords:"risk management"

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.

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 (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.

In a recent decision, the Securities and Exchange Commission (SEC) approved a rule change for the Fixed Income Clearing Corporation (FICC). This amendment allows FICC to manage same-day settling repurchase agreements (repos), improving the efficiency of securities transactions by centralizing settlement processes. The change includes two new services: the Same-Day Settling Service, which allows for both legs of repos to settle under FICC's watch, reducing the risk of settlement failures, and the Pair-Off Service, which helps settle failed trades on the same day they occur, decreasing overnight risk for members. This update aims to streamline the settlement of securities transactions and minimize risks associated with settlements.

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.