Commentary

Tuesday, April 16, 2024

Loan Recalls & the T+1 Countdown: Can Securities Lenders Adapt?

Time is Running out for Lenders to Prepare for T+1 and N-PX Loan Recall Wrinkles

Author: David Schwartz J.D. CPA
The T+1 settlement cycle and new proxy voting disclosure requirements present unprecedented challenges for the securities lending industry. The clock is ticking, and lenders failing to adapt swiftly risk significant operational and financial disruptions. Technology, communication, and collaboration are crucial for successful recall processes in a rapidly evolving landscape.    
Comments (0)
Number of views (5)
Full Article

Categories: All, Commentary, Cross-Post

Tags:

Monday, November 6, 2023

Predictive AI in Securities Finance: Step One

How to Develop an Efficient, Legally-defensible Machine Learning Infrastructure

Author: Ed Blount
On April 2nd, 2026, an effusion of data from a daily trove of U.S. regulatory filings will create resources to drive many new use cases for artificial intelligence in capital markets. A clear opportunity exists in securities finance, where practitioners have repeatedly stated that major IT investments will be needed to comply with the many new regulatory mandates. “Black box” AI platforms may seem a ready solution but can also create nightmares for client reviews and lawsuits.
Comments (0)
Number of views (1680)
Full Article

Categories: All, Change Overview and Rationale, Commentary, Disclosure Regimes, Cross-Post

Tags:

Wednesday, October 25, 2023

New Money Fund Reforms: Safer and More Resilient Cash Collateral Pools?

More liquidity, transparency, and safety for institutional investors?

Author: David Schwartz J.D. CPA

The Securities and Exchange Commission (SEC) recently adopted final rules on money market (2a-7) fund reforms. These reforms are designed to make money market funds more resilient and liquid, potentially making them safer and more attractive vehicles for mutual funds to use as collateral pools for their securities lending programs.
 

Comments (0)
Number of views (1740)
Full Article

Categories: All, Change Overview and Rationale, Disclosure Regimes, Formal Regulatory Remedies, Cross-Post

Tags: securities lending, collateral, Regulatory reform, SEC, Redemption Gates, Liquidity

Friday, October 13, 2023

SEC Adopts Long Awaited Securities Lending Disclosure Rule

Persuasive Public Comment Helps Mold the Final Rule

Author: David Schwartz J.D. CPA
The Securities and Exchange Commission (SEC) has adopted a new rule, rule 10c-1, to increase transparency in the securities lending market. The rule requires certain persons to report information about securities loans to a registered national securities association (RNSA). The RNSA will then make certain information publicly available. Published in December of 2021, the proposal received considerable public comment, requiring the Commission to extend the initial 30-day comment period...
Comments (0)
Number of views (1833)
Full Article

Categories: All, Change Overview and Rationale, Disclosure Regimes, Formal Regulatory Remedies, Cross-Post

Tags: securities lending, SEC

Thursday, September 28, 2023

Untold Stories of Market Manipulation: Archegos Capital

How Securities Lenders Unraveled the $100 billion Pump and Dump Scheme

Author: Ed Blount
By Ed Blount and Dan Hammond “In a matter of days, the companies at the center of Archegos’s trading scheme lost more than $100 billion in market capitalization,” Archegos owed billions of dollars more than it had on hand, and Archegos collapsed.”  This blog tells the untold story of how securities lenders in March 2021 became more than simply a source of liquidity to markets. Lenders became a market posse. Lawsuits dominated the business news about the...
Comments (0)
Number of views (1529)
Full Article

Categories: All, Commentary, Cross-Post

Tags:

RSS
12345678910Last

Journal Commentaries

 

Keep Regulation Functional (October 2008)

CSFME’s Executive Director Ed Blount interviews SEC Chairman Chris Cox.
American Banking Association Banking Journal
https://www.questia.com/library/journal/1G1-187494664/keep-functional-regulation-how-financial-regulation

 

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

by Ed Blount
The RMA Journal, v91n1, 28-32, 5 pages Sep 2008.

 

Searching for New Paradigms at BIS (July 2008)

by Ed Blount
Unexpected deficiencies in bank capital after recent market turmoil has regulators rethinking aspects of Basel II and “value at risk.”  
American Banking Association Banking Journal  
https://www.questia.com/library/journal/1G1-181991450/searching-for-new-paradigms-at-bis-market-turmoil

 

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

By Ed Blount
Newly elected Basel Committee Chairman Caruana, Governor of the Bank of Spain, gives his views on the revised Basel capital accord, relative to its potential effects on competition and risk management in banking markets.
American Banking Association Banking Journal
https://www.questia.com/read/1G1-108008773/will-basel-ii-affect-the-competitive-landscape-the​