Tuesday, January 19, 2016

Pushback on SEC Liquidity Proposals

Author: David Schwartz J.D. CPA

The Securities and Exchange Commission’s September 2015 rule proposals addressing mutual fund liquidity issues have not been received with great enthusiasm by the fund industry.  Some major players have made it quite clear in their comment letters that they feel the SEC has missed the mark with this proposal.  

Comments (0)
Number of views (7560)

Tuesday, October 20, 2015

FINRA Will Repeat Liquidity Stress Tests in 2016

Author: David Schwartz J.D. CPA

In a preview of FINRA's 2016 letter on regulatory priorities and emerging risks, FINRA's CEO, Richard Ketchum   said that FINRA’s focus in the upcoming year will be on three key issues: outsourcing, cyber risk and liquidity concerns. Ketcham also said that FINRA will repeat “some version” of its liquidity stress tests in 2016, further indicating that these stress tests will be an ongoing focus of FINRA.  

Comments (0)
Number of views (6497)

Thursday, October 8, 2015

OFR Report Highlights Complexity of the Liquidity Coverage Ratio

Author: David Schwartz J.D. CPA

On October 7, 2015, the Office of Financial Research (OFR) published a paper highlighting the difficulties in interpreting the Liquidity Coverage Ratio (LCR), a new standard set by bank regulators after the financial crisis to help ensure banks maintain sufficient liquid assets during times of market stress. The OFR’s analysis of the LCR is part of its ongoing work monitoring the effects of changes in U.S. bank capital and liquidity regulations. 

Comments (0)
Number of views (5822)

Tuesday, October 6, 2015

Fed Pres. Dudley Addresses Market Liquidity

Author: David Schwartz J.D. CPA

In a September 30, 2015 speech before the SIFMA Liquidity Forum in New York, Fed President and Chief Executive Officer William C. Dudley addressed concerns that market liquidity is being hindered by regulation.  While open to the idea of finding a better balance between new regulations and improved trading conditions, Dudley stated that he found, "the evidence to date that liquidity has diminished markedly is, at best, mixed."  In addition, Mr. Dudley does not find any real evidence that regulations are the primary cause of changing liquidity conditions in the bond and other markets.  

Comments (0)
Number of views (6807)

Monday, August 31, 2015

PWC Studies the State of Global Financial Market Liquidity

Author: David Schwartz J.D. CPA

PWC has published an August 2015 study commissioned by The Global Financial Markets Association (GFMA) and the Institute for International Finance (IIF) intended to examine the post-crisis state of global financial market liquidity.  Among its findings, the study concludes that current and future market liquidity is a subject of concern for market participants. It further recommends a review of the calibration of the reforms to date and the ongoing regulatory agenda, in order to properly understand and consider the effects of regulatory initiatives on market liquidity by asset class, and to consider whether upcoming regulatory initiatives could likely exacerbate the trends in liquidity.

Comments (0)
Number of views (6372)
RSS
1234