Dismal's Smacks

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🧱 Market Reform

SEC Commissioner Hester M. Peirce: "Periodically revisiting the rules to ensure they are working properly is important. For that reason, I am supporting today’s proposal."

SEC Commissioner Hester M. Peirce: "Periodically revisiting the rules to ensure they are working properly is important. For that reason, I am supporting today’s proposal. That support comes with a plea for input from the public despite the as-is-now-usual unduly short comment period." https://www.sec.gov/

CFTC's Division of Clearing and Risk (DCR) staff issue advisory having "recently encountered potential DCO registration issues involving prime brokerage arrangements used by swap execution facilities (“SEF”) or those seeking to register as SEFs"

Source: (downloads a pdf) CFTC Staff Advisory No. 23-06 Press release: https://www.cftc.gov/PressRoom/PressReleases/8705-23 The Commodity Futures Trading Commission’s Division of Clearing and Risk (DCR) today issued a staff advisory that encourages entities using prime brokerage arrangements that provide credit substitution on a centralized basis

Jessica Wachter Chief Economist SEC: "The proposed amendments would require that the clearing agency mark positions to market at least daily, monitor risk on an ongoing basis & have the capability to collect margin depending on changes in clearinghouse"

Jessica Wachter Chief Economist SEC: "The proposed amendments would require that the clearing agency mark positions to market at least daily, monitor risk on an ongoing basis & have the capability to collect margin depending on changes in clearinghouse conditions, such as a breach of risk capacity" Covered

SEC Proposes new rule to Improve Risk Management and Resilience of Covered Clearing Agencies that require a risk-based margin system that monitors intraday exposure on an ongoing basis and includes the authority & operational capacity

Proposed Rule (130 pages): Fact Sheet Press Release: https://www.sec.gov/news/press-release/2023-95 The Securities and Exchange Commission today proposed rule changes that would improve the resilience and recovery and wind-down planning of covered clearing agencies. The proposal would amend the existing rules regarding intraday margin and the

Haoxiang Zhu Director Division of Trading on proposed SEC changes:

"The changes would provide that the margin system must monitor intraday exposure and further specify the circumstances in which a covered clearing agency must have the authority and operational capacity to make intraday margin calls" Covered Clearing Agency Resilience and Recovery and Wind-Down Plans https://www.sec.gov/

Elizabeth Fitzgerald: "the proposed amendments to this rule would require that a covered clearing agency’s risk-based margin system monitor intraday exposure on an ongoing basis and include the authority and operational capacity..."

Elizabeth Fitzgerald: "the proposed amendments to this rule would require that a covered clearing agency’s risk-based margin system monitor intraday exposure on an ongoing basis and include the authority and operational capacity to make intraday margin calls as frequently as circumstances warrant" Covered Clearing Agency Resilience and

Gary Gensler: "Intraday margin calls played an important role in clearinghouses’ ability to respond to volatility during the January 2021 “meme-stock” events & during recent periods of heightened Treasury volatility."

"I think enhancing these intraday tools would help make our markets more resilient." https://www.sec.gov/news/statement/gensler-statement-clearinghouse-051723 TLDRS: "Current rules from 2016 also have important provisions for clearinghouses to have the authority and capacity to collect intraday margin." * "Intraday margin calls played