The SEC adopted changes to the exemptions for certain clearing agencies and broker-dealer/futures commission merchants concerning the portfolio margining of swaps and security-based swaps that are cleared credit default swaps.
Fixed Income Clearing Corporation settled SEC charges for (i) having inadequate procedures to determine whether the clearing corporation held "sufficient qualifying liquid resources" and (ii) failing to review on at least a monthly basis "risk-based margin models and parameters."
In a newly issued FAQ, the SEC Division of Trading and Markets addressed implementation questions on "regulatory reporting and public dissemination of security-based swap transactions under Regulation SBSR."
Cboe Europe B.V. notified the SEC Division of Trading and Markets that it intends to rely on the class no-action relief issued in July 2013 to engage in familiarization activities as to "Eligible Options" traded on its exchange with "Eligible Broker-Dealers / Eligible Institutions" in the United States.
SEC Director Peter Driscoll described the regulatory and operational challenges of delivering financial services during the pandemic, the issuance of alerts on pandemic and emergent risks (including on cybersecurity), and the roll out of Regulation Best Interest.
The SEC Division of Examinations' 2021 priorities include an enhanced focus on climate and environmental, social and governance-related risks, conflicts of interest for brokers and investment advisers, and FinTech-related risks.
An SEC final rule that conditionally exempts certain security-based swap execution facilities and security-based swap dealers from also registering as clearing agencies was published in the Federal Register.