Category:Finance & Banking
Implementation of Swap Trade Regulation Aimed at Reducing Investment Risk for American Financial Firms
In September 2017, United States economic markets implemented swap-regulating rules to reduce risk to U.S. investment firms. Signed into law in 2016, this regulation curbs the risk associated with swap derivatives in the United States. The Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the Financial Conduct Authority, and the Federal Housing Finance Agency (the “Agencies”), constructed a joint rule requiring taxpayer-insured banks and financial institutions to collect greater collateral and provide greater transparency when involved in swap derivative agreements.
A Look at Regulation Systems Compliance and Integrity
The U.S. Securities and Exchange Commission (the “SEC”) adopted Regulation Systems Compliance and Integrity (“Reg SCI”) to strengthen the technology infrastructure of the U.S. securities markets by imposing new regulatory requirements on SCI entities. The term “SCI entity” includes self-regulatory organizations (“SROs”) such as stock and options exchanges, registered clearing agencies, the Financial Industry Regulatory Authority (“FINRA”), and the Municipal Securities Rulemaking Board (“MSRB”); certain alternative trading systems; disseminators of consolidated market data, such as the Consolidated Tape Association; and certain exempt clearing agencies. The regulatory requirements were designed to reduce the occurrence of systems issues, improve resiliency when systems problems do occur, and to enhance the SEC’s oversight and enforcement of securities market technology infrastructure.
Hurricanes Harvey and Irma Add Urgency to Congressional Flood Insurance Reform Effort
In 2016, Congress introduced a bill to reform the National Flood Insurance Program. Proponents of the bill saw it as necessary reform to a debt-ridden and ineffective program, while opponents saw it as an attack against a necessary safeguard for coastal Americans. The National Flood Insurance Program was set to expire at the end of September 2016, until Congress extended the program through December 8, 2017. As Americans rebuild from Hurricanes Harvey and Irma, Congress contemplates reform and seeks to keep the program funded past December.
Hurricane Harvey Aftermath Leaves Opportunity for Financial Fraud
On August 30, 2017, Trump signed Proclamation 9632 declaring September 2017 as National Preparedness Month, encouraging “all Americans… take action to be prepared for disaster or emergency by making and practicing their plans,” also citing that fewer than half of American families report having an emergency response plan. While it is important to have a disaster plan in place for your family to take care of their physical needs, it is also vital to be prepared for the possibility of scams and fraudulent activity in the wake of a natural disaster such as Hurricane Harvey.
Mr. Trump’s Swing at Financial Regulation
During his first 67 days in office, Mr. Trump signed 19 executive orders. One such action designed to roll back regulations from the 2010 Dodd-Frank Act (“Act”) received little to no media attention but may have long lasting ramifications in the financial industry.
New York Law Could Shake Up Compliance Departments
Gilbert Carrillo Executive Editor Loyola University Chicago School of Law, JD 2017 The state of New York is in the process of implementing a new rule requiring some financial U.S. and foreign institutions, with New York offices, to prove that their transaction monitoring and sanctions filtering programs for catching criminal activity do in fact …
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Anticipating the Direction of SEC Compliance Issues Under President Trump’s Nominee for Chairman of the SEC, Jay Clayton.
Ed Tyrrell Associate Editor Loyola University Chicago School of Law, J.D. 2018 President Donald J. Trump wasted no time in nominating Jay Clayton, Partner at Sullivan Cromwell, as his pick for the chairman of the SEC. Clayton, a veteran Wall Street attorney, is renowned for his expertise in public and private mergers, acquisitions transactions, …
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The SEC’s Whistleblower Program Proves Resilient Despite Adversity
Lauren Rushing Associate Editor Loyola University Chicago School of Law, J.D. 2018 In the span of one week, two financial services companies paid penalty fees to the Securities and Exchange Commission for intentionally undercutting the Whistleblower Program. Impeding whistleblower communication is averse to quashing misconduct in the marketplace, which is the program’s main goal. …
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SEC set to change how investors elect board members
Gilbert Carrillo Executive Editor Loyola University Chicago School of Law, J.D. 2017 The Securities and Exchange Commission (SEC) is expected to propose new rules that would make it easier for shareholders to vote on board candidates nominated by investors, versus those pushed by the company’s management. What impact could this have on compliance departments? …
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Cybersecurity Biggest Risk to Financial System, Regulators Plan to Provide More Oversight
Kaitlin Lavin Executive Editor Loyola University Chicago School of Law, JD 2017 Financial institutions can expect increased oversight and new regulations due to recent cyberattacks and data breaches in banks. Several banks have already reported data breaches this year, and many banks have been rattled by the cyberattacks on SWIFT—the messaging network connecting the …
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