Thursday, December 10, 2015

House Committee Faults FSOC for “Lack of Transparency” in SIFI Designations

Author: David Schwartz

In a nearly four-hour hearing held on December 8, 2015, members of the House Financial Services Committee grilled the heads of the Financial Stability Oversight Council (FSOC), accusing the FSOC of a poor transparency and lack of responsiveness to legislators’ requests for information. 

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Friday, November 20, 2015

FSB Finalizes Standards and Processes for Global Securities Financing Data Collection and Aggregation

Author: Member Admin

On November 18, 2015, the Financial Stability Board (FSB) published its final Standards and Processes for Global Securities Financing Data Collection and Aggregation. The final standards are based on the FSB’s previous November 2014 consultation paper and define the data elements for securities lending, repo, and margin lending that national and regional authorities will be asked to report in aggregate to the FSB.

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Thursday, October 15, 2015

B of E Explores Accepting Equities as Collateral

Author: David Schwartz

In a speech in July before at the Money Markets Liaison Committee in London, Chris Salmon, Executive Director, Markets, Bank of England hinted that the Bank of England was exploring means by which it could accept equities as collateral for its market operations.


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Tuesday, April 28, 2015

Office of Financial Research Seeks Better Securities Lending and Repo Data

Author: David Schwartz

Prior to the financial crisis, regulators only had limited data available to them about securities lending and repo markets.  The crisis exposed a number of vulnerabilities previously not recognized as a result of this lack of data.  Right away, regulators realized that the only way to understand and effectively address these weaknesses -- leverage and liquidity risks, weak market infrastructure, and fire sale risks — was to obtain more and better regulatory data about securities lending and repo volume, the types and quality of collateral being employed, and how securities lending and repo fit into firms’ risk management processes.  But a recent release by the Office of Financial Research says these data collection efforts are not enough.  According to the OFR, despite the efforts of regulators, significant gaps remain, and "the risk of set fire sales before or after a counterpart default remains largely unaddressed.” 

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Tuesday, March 17, 2015

A Call for Academics to Join Policy Debates Over Securities Regulations

SEC Opens the Door to Academic Input on Equity Market Structure Reforms

Author: David Schwartz

In a recent address before the Center for the Study of Financial Regulation at the University of Notre Dame’s Mendoza College of Business, SEC Commissioner Michael S. Piwowar urged academics to engage more actively in policy debates over securities regulation. Commissioner Piwowar is particularly interested in “data-driven” input from academics in connection with potential reforms to the structure of the U.S. securities markets. The Commission recently finalized the composition of a Market Structure Advisory Committee that will focus on the structure and operations of the U.S. equities markets and will function as a forum and resource for reviewing specific, clearly articulated initiatives or rule proposals. Piwowar sees the Committee’s work as a prime opportunity for academics studying the securities markets to provide real input and make their voices heard.

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