News & Insights

Help
5 News Results
Commentary by Nihal Patel

In a Consultation Report, IOSCO proposed a framework to evaluate leverage used by investment funds. The proposed framework includes a two-step process intended to achieve a "meaningful" and "consistent" analysis of global leverage. In the first step, regulators would perform an analysis of metrics which may exclude from consideration funds unlikely to create "stability risks." In the second step, regulators would perform a risk-based analysis of funds found to create stability risks. The consultation paper responds to a request from the FSB in its 2017 report, " Policy Recommendations to

Commentary by Steven Lofchie

FINRA issued guidance on liquidity risk management practices for senior management and risk managers at firms that either hold inventory positions or clear and carry customer transactions. The guidance was based on FINRA's review of forty-three firms' practices concerning managing liquidity needs in a stressed environment. The guidance was published on FINRA's Web site. FINRA suggested that firms test for the following stresses (among others): Loss of funding from money market funds and loss of funding on the basis of collateral other than that of governments; A doubling of the margin