Joanna Fields recently spoke with FinOps Report about the events surrounding the Archegos Capital Management implosion and offered good practice recommendations on how broker-dealers can evaluate and reduce their counterparty risk using a holistic management program.
Regulations already exist, but are firms building out compliance programs to navigate them in a way that meets regulatory expectations while also boosting risk monitoring and the bottom-line?
Patomak expects SEC scrutiny of Digital Assets to grow dramatically in the year ahead, and is well-prepared to help firms respond by applying its deep expertise developing compliance programs, including designing controls, conducting risk assessments, and supporting due diligence to ensure that Digital Asset business activities comply with SEC rules and anti-money laundering (“AML”) regulations.
The Securities and Exchange Commission and the Financial Industry Regulatory Authority indicated that firms appear to be on the right track with Reg BI and Form CRS compliance, but also offered requirement reminders and observations of industry practices to aid firms in meeting regulatory expectations. Around the rules’ implementation, the SEC’s Office of Compliance Inspections and Examinations and FINRA have been conducting exams to understand and assess how firms are complying with the rules.
The Commodity Futures Trading Commission (CFTC) voted 5-0 during its open meeting on May 28 to adopt an interim final rule to extend the September 2020 compliance date (Phase 5) for regulatory Initial Margin (IM) , to September 1, 2021.
On Thursday, May 28, the CFTC will hold a public meeting to consider extending the compliance schedule for initial margin requirements for uncleared swaps in response to the COVID-19 pandemic, in line with the Global Markets Advisory Committee recent endorsement of subcommittee recommendations.