Thursday, March 18, 2021

Reddit Trading and Resilience in U.S. Equity Finance

Part 2. Heated Debates Begin about Trading Suspensions

Author: Ed Blount

On February 4th, 2021, the Securities and Exchange Commission called for a “robust public discussion” about whether online brokers’ late January suspensions of retail trading should lead to changes in the market infrastructure. In the view of attorneys for the aggrieved retail traders, there will be a lot for the SEC to consider. More than 50 lawsuits have been filed as of today, creating another form of discussion. Our blog series on the potential infrastructure changes...

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Categories: All, Formal Regulatory Remedies, Cross-Post

Tags: T+1

Thursday, March 11, 2021

Reddit Trading and Resilience in U.S. Equity Finance

Part 1. Risk Mitigation Dynamics of the U.S. Clearing and Settlement Systems

Author: Ed Blount

The trading suspensions set by online brokers in late January 2021 reminded many industry veterans of the systemic circuit breakers that were first deployed during the Black Monday crash of October 1987. In both instances, a loose band of derivatives traders was prevented by the capital rules of the equity clearing and settlement system from continuing to crush exposed short sellers and risk a systemwide collapse. Then and now, changes to the infrastructure were front of mind for regulators...

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Categories: All, Formal Regulatory Remedies, Cross-Post

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Friday, October 30, 2020

Regulators Want ESG Funds to Justify their Strategies

Author: David Schwartz J.D. CPA

Today the Department of Labor (DOL) issued final rules clarifying the regulatory guideposts for fiduciaries of private-sector retirement and other employee benefit plans in light of recent trends involving environmental, social, and governance (ESG) investing. The DOL is not the only regulator with ESG funds in their cross-hairs. The Securities and Exchange Commission (SEC) has begun verifying asset managers’ and mutual funds’ ESG strategies through examination and is considering...

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Categories: All, Formal Regulatory Remedies

Tags: SEC, DOL, ESG

Wednesday, July 3, 2019

ESMA Takes a Look at Tax Withholding Schemes

Proposes Some Best Practices and Promises a Follow-up Study

Author: David Schwartz J.D. CPA

The European Securities and Markets Authority (ESMA) has published the findings of its preliminary study of multiple withholding tax (WHT) reclaim schemes. ESMA conducted this preliminary study at the request European Parliament (EP) and has launched a formal inquiry to gather further evidence from national competent authorities (NCAs) on the supervisory practices and experience regarding those schemes.

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Categories: All, Formal Regulatory Remedies, Procedural Changes

Tags: securities lending, innovation, ESMA, Economic Substance

Monday, August 28, 2017

Fed Chair Rejects Regulatory Roll-back

Financial Reforms Should be Refined, Not Repealed

Author: David Schwartz J.D. CPA

Federal Reserve Chairwoman Janet L. Yellen strongly defended post-crisis financial reforms, saying that new regulations have strengthened the U.S. financial markets and wholesale roll-back would be unwise. In remarks delivered at a symposium sponsored by the Fed in Jackson Hole, Wyoming Yellen made the case for the success of these reforms, summarizing indicators and research that show the improved resilience of the U.S. financial system, due, she said,...

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Categories: All, Change Overview and Rationale, Formal Regulatory Remedies

Tags: Reconsideration

Commentary

Reddit Trading and Resilience in U.S. Equity Finance

Part 2. Heated Debates Begin about Trading Suspensions

Reddit Trading and Resilience in U.S. Equity Finance

Part 1. Risk Mitigation Dynamics of the U.S. Clearing and Settlement Systems

Regulators Want ESG Funds to Justify their Strategies

ESMA Takes a Look at Tax Withholding Schemes

Proposes Some Best Practices and Promises a Follow-up Study

Fed Chair Rejects Regulatory Roll-back

Financial Reforms Should be Refined, Not Repealed

Journal Commentaries

Keep Regulation Functional (October 2008)

The Bear Market Posse, or Counterparty Risk Management during the Recent Turmoil (Sept. 2008)

Searching for New Paradigms at BIS (July 2008)

Will Basel II Affect The Competitive Landscape? (September 2003)