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SEC Division of Examinations Announces 2024 Priorities

SEC Alert! SEC Division of Examinations Announces 2024 Priorities. SEC to probe transparency of fees, compliance with derivatives rules, & liquidation procedures amid market volatility.

Examinations of Investment Advisers: As a fiduciary, an investment adviser owes a duty of care and a duty of loyalty to its clients. An adviser must, at all times, serve the best interest of its clients and not subordinate its clients’ interest to its own. In other words, an investment

Survey responses were collected between October 2 and October 10.

October Empire State Manufacturing Survey: the headline general business conditions index fell seven points to -4.6 (23.1 expected!)

Wut Mean?: General Business Activity: * Business activity in New York State saw a slight decline in October 2023, per the Empire State Manufacturing Survey. * The general business conditions index dropped by seven points, settling at -4.6 (23.1 had been expected). * While 24% of firms saw improved conditions over

Implementation of Portfolio Differential Charge and MLA Charge Enhancement

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

What is happening?: * The SEC approved proposed rule changes SR-FICC-2023-011 (PD Rule Change - 9/25/23) and SRFICC-2023-012 (MLA Rule Change - 9/27/23) filed by Fixed Income Clearing Corporation (FICC). * The PD Rule Change will add a new margin component, the Portfolio Differential Charge (PD Charge), to

SEC Commissioner Caroline A. Crenshaw

Caroline Crenshaw: "This could help the SEC reconstruct market events & design responses to events that take place during times of volatility similar to the “meme” stock episode that might happen in the future."

SEC Commissioner Caroline A. Crenshaw Statement Regarding the Reporting of Securities Loans (Rule 10c-1a) and Short Position and Activity Reporting (Rule 13f-2) includes some interesting nuggets as to 'why' she supported both rules. Reporting of Securities Loans (Rule 10c-1a) To level set, in its 2020 Annual Report (“Report”

Whistleblower award for original information

SEC awards whistleblower over $400k for original information leading to the covered action. Penalty levied ranged between $1.333-$4 million.

The Commission also considered, however, that Claimant had some involvement in two of the transactions that were charged by the Commission in the Covered Action. Woah, for any potential whistleblowers out there that are worried about coming forward because they may have had a hand in the misconduct they want

SEC Commissioner Mark Uyeda

Mark Uyeda on 'NO' for (Rule 13f-2): "Public knowledge of their short positions would render them susceptible to a short squeeze & also reduce the incentives to engage in this beneficial activity."

Source: https://www.sec.gov/news/statement/uyeda-statement-short-sale-101323 Thank you, Chair Gensler. Section 13(f)(2) of the Exchange Act requires the Commission to prescribe rules providing for the public disclosure of the name of the issuer and the title, class, CUSIP number, and aggregate amount of the number of

Mark Uyeda

Mark Uyeda "when these changes from the proposal are taken together, to what extent can the resulting information be used to estimate particular short selling positions & is that acceptable?"

Source: https://www.sec.gov/news/statement/uyeda-statement-securities-lending-101323 Thank you, Chair Gensler. Under Section 984(b) of the Dodd-Frank Act, the Commission is required to promulgate rules “designed to increase the transparency of information available to brokers, dealers, and investors with respect to the loan or borrowing of securities.”[1]