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Multiple brokers caught by FINRA stealing millions from retail by forcing over 5 million retail customers into share lending while keeping the profits.

Multiple brokers caught by FINRA stealing millions from retail by forcing over 5 million retail customers into share lending while keeping the profits.

Following up from today's earlier post: FINRA 'discipline' Alert! From January 2019-March 2023, SoFi required retail customers, as a condition of opening an account, consent to their securities lending program--more than two million customers were automatically enrolled. About securities lending: Fully paid securities lending is a practice through which a

SoFi

FINRA 'discipline' Alert! From January 2019-March 2023, SoFi required retail customers, as a condition of opening an account, consent to their securities lending program--more than two million customers were automatically enrolled.

CFTC to Hold a Commission OPEN Meeting on December 13 to consider Swap and Derivatives Rules.

CFTC to Hold a Commission OPEN Meeting on December 13 to consider Swap and Derivatives Rules.

Office of Information and Regulatory Affairs released the Fall 2023 Unified Agenda

Office of Information and Regulatory Affairs released the Fall 2023 Unified Agenda of Regulatory and Deregulatory Actions for the Securities and Exchange Commission.

U.S. Senator Sherrod Brown

U.S. Senator Sherrod Brown to Banks: Higher Capital Requirements Protect Consumers and Taxpayers From Wall Street's Risky Bets.

Final Rule: Prohibition Against Conflicts of Interest in Certain Securitizations

Prohibition Against Conflicts of Interest in Certain Securitizations prohibiting a sponsor of an asset-backed security (including a synthetic asset-backed security) that would result in conflicts of interest effective February 5, 2024.

CME/FICC Cross Margining Enhancements Implementation Notice

CME/FICC Cross Margining Enhancements Implementation effective 1/22/24. In 2020, CME exposures were large—likely in excess of $100bn notional. Savings with Enhanced Cross-Margining estimated at ~80% to protect the clearinghouses...

📰 News

Multiple brokers caught by FINRA stealing millions from retail by forcing over 5 million retail customers into share lending while keeping the profits.

Multiple brokers caught by FINRA stealing millions from retail by forcing over 5 million retail customers into share lending while keeping the profits.

Following up from today's earlier post: FINRA 'discipline' Alert! From January 2019-March 2023, SoFi required retail customers, as a condition of opening an account, consent to their securities lending program--more than two million customers were automatically enrolled. About securities lending: Fully paid securities lending is a practice through which a

SoFi

FINRA 'discipline' Alert! From January 2019-March 2023, SoFi required retail customers, as a condition of opening an account, consent to their securities lending program--more than two million customers were automatically enrolled.

CFTC to Hold a Commission OPEN Meeting on December 13 to consider Swap and Derivatives Rules.

CFTC to Hold a Commission OPEN Meeting on December 13 to consider Swap and Derivatives Rules.

U.S. Senator Sherrod Brown

U.S. Senator Sherrod Brown to Banks: Higher Capital Requirements Protect Consumers and Taxpayers From Wall Street's Risky Bets.

Final Rule: Prohibition Against Conflicts of Interest in Certain Securitizations

Prohibition Against Conflicts of Interest in Certain Securitizations prohibiting a sponsor of an asset-backed security (including a synthetic asset-backed security) that would result in conflicts of interest effective February 5, 2024.

CME/FICC Cross Margining Enhancements Implementation Notice

CME/FICC Cross Margining Enhancements Implementation effective 1/22/24. In 2020, CME exposures were large—likely in excess of $100bn notional. Savings with Enhanced Cross-Margining estimated at ~80% to protect the clearinghouses...

Fed Vice Chair for Supervision Michael S. Barr

"the discount window provides ready access to funding to help banks manage liquidity risks in normal conditions, it is also incredibly important that it be available to banks dealing with idiosyncratic or market-wide stress events."

📈 Macroeconomics

Summary of Commentary on Current Economic Conditions

Fed Beige Book: "some banks noted a slight uptick in consumer delinquencies." "The economic outlook for the next six to twelve months diminished over the reporting period."

Overall Economic Activity: On balance, economic activity slowed since the previous report, with four Districts reporting modest growth, two indicating conditions were flat to slightly down, and six noting slight declines in activity. Retail sales, including autos, remained mixed; sales of discretionary items and durable goods, like furniture and appliances,

FDIC-Insured Institutions Q3 2023: Unrealized losses on securities totaled $683.9 billion in the third quarter, up $125.5 billion (22.5 percent) from the Q2 2023. Unrealized losses on held-to-maturity securities totaled $390.5 billion

FDIC-Insured Institutions Q3 2023: Unrealized losses on securities totaled $683.9 billion in the third quarter, up $125.5 billion (22.5 percent) from the Q2 2023. Unrealized losses on held-to-maturity securities totaled $390.5 billion

M1 lowest since 2021

Seasonally adjusted M1 (-$90.5B) (-.5%), M2 (-$29.5B) (-.1%), and currency in circulation (-$2800M) (-.1%) all dropped in October.

FSB publishes 2023 G-SIB list

Too Big to Fail Alert! Financial Stability Board: "One bank (Bank of Communications (BoCom)) has been added to the list of G-SIBs that were identified in 2022, and two banks (Credit Suisse and UniCredit) have been removed."

October 31–November 1, 2023 FOMC Minutes

October 31–November 1, 2023 FOMC Minutes: "The staff provided an update on its assessment of the stability of the financial system and, on balance, judged that the financial vulnerabilities of the U.S. financial system were notable."

Notice of Designated Reserve Ratio for 2024.

FDIC Alert! Notice of Designated Reserve Ratio for 2024. FDIC designates that the Designated Reserve Ratio (DRR) for the Deposit Insurance Fund shall remain at 2 percent for 2024.

Delinquency Rates on Loans and Leases at Commercial Banks are spiking!

Delinquency Rates on Loans and Leases at Commercial Banks are spiking!

🧱 Market Reform

Office of Information and Regulatory Affairs released the Fall 2023 Unified Agenda

Office of Information and Regulatory Affairs released the Fall 2023 Unified Agenda of Regulatory and Deregulatory Actions for the Securities and Exchange Commission.

Source: https://www.reginfo.gov/public/do/eAgendaMain?operation=OPERATION_GET_AGENCY_RULE_LIST¤tPub=true&agencyCode=&showStage=active&agencyCd=3235&csrf_token=1BF2FDB78A7198C9E58764AA2702EF22D6B9C0FBAE9BBC1A5D91D33FD4E0D24F55FF869A4CE1C0345D7FE275ABE899F2B7DB AgencyAgenda Stage of RulemakingTitleRINSECProposed Rule StageEDGAR Filer Access and Account Management3235-AM58SECProposed Rule StageIncentive-Based Compensation Arrangements3235-AL06SECProposed Rule StageCorporate Board Diversity

Final Rule: Prohibition Against Conflicts of Interest in Certain Securitizations

Prohibition Against Conflicts of Interest in Certain Securitizations prohibiting a sponsor of an asset-backed security (including a synthetic asset-backed security) that would result in conflicts of interest effective February 5, 2024.

SEC Adopts Rule to Prohibit Conflicts of Interest in Certain Securitizations

SEC Adopts Rule to Prohibit Conflicts of Interest in Certain Securitizations

Proposed Rule Change

NSCC proposes updating MLA charge by moving all exchange traded products (other than those deemed to be Illiquid Securities) into the equities asset group & calculating impact cost at the security level along with ETF tweaks.

Request for Comments Regarding Statement of Priorities for Fiscal Year 2024-2025

OPEN for comment: OSC (Canada's SEC) seeks comment on priorities for 2024-2025--including short selling and dispute resolution.

SEC Adopts Rules to Improve Clearing Agency Governance and Mitigate Conflicts of Interest

SEC Adopts Rules to Improve Clearing Agency Governance and Mitigate Conflicts of Interest.

SEC Proposes Rule to Address Volume-Based Exchange Transaction Pricing for NMS Stocks

SEC Alert & OPEN for Comment Alert! SEC Proposes Rule to Address Volume-Based Exchange Transaction Pricing for NMS Stocks.

🗣 Discussion / Question

Is IBKR okay? Effective Tuesday, October 31, 2023 INTERACTIVE BROKERS LLC/IBKR SECURITIES SERVICES LLC will withdraw from membership in the Netting and Repo Netting of the Government Securities Division.

I have been blocked from accessing dtcc.com. Has anyone else also been blocked by the DTCC and unable to access dtcc.com?

Weird glitch? cftc.gov appears to be having DNS issues this morning (see no records) but is available at https://cftc.prod.acquia-sites.com/

A deep dive into SEC greenlighting FICC's PD & MLA Rule changes & how they could be connected to MOASS.

Open for comment: FINRA proposes to add new paragraph (“Protected Options”) to FINRA Rule 4210 (Margin Requirements). Appears to exempt if a long call offsets a short put?

🌡️ Inflation

Reserve Bank of Australia Statement on Monetary Policy: "forecasts for both headline and underlying inflation over the year ahead have been revised higher" "The inflation forecasts out to 2025 have also been revised higher."

U.S. Revolving credit (credit cards) grew From August to September by $3.1 billion and increased at an annual rate of 8.6%.

BLS: Unemployment holds at 3.9% with a minimal shift in jobless figures. Hourly earnings climb to $34.00, more fuel for the inflation fire!

Federal Reserve issues FOMC statement: the Committee decided to maintain the target range for the federal funds rate at 5-1/4 to 5-1/2 percent.

Inflation Alert! ADP National Employment Report: Private Sector Employment Increased by 113,000 Jobs in October; Annual Pay was Up 5.7% for stayers, 8.4% for job changers.

🤡 Meme

Corporate Media: "You wanna tell me about your plan?" RCEO: "No... No I don't think I will"

"There has never been so many conflicting lines of bullshit running all at once. The emperor has no clothes."

🤡🤡🤡How it started: "if you are willing to widen your lens to include a more commonplace definition, then it is possible to conclude that current monetary policy is, in fact, "on track."" How it's going: "Contacts reported there was a 'freight recession'"🤡

I'm a GMErican, anything else is a label meant to distract and divide.

Remember last month when corporate media said financial conditions were loosening? 🤡

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