SEC Staff Cautions Brokers to Remain Vigilant and Collect Margin from Counterparties

The SEC Division of Trading and Markets warned broker-dealers to stay "vigilant to market and counterparty risks" during this period of high volatility and market uncertainty.

In a statement, SEC staff urged brokers to (i) ensure margin is received from counterparties "to the fullest extent possible," (ii) be mindful that concentrated positions create liquidity and other risks, (iii) properly stress test positions, "particularly those that are concentrated," and (iv) monitor risk management limits and quickly report breaches to management.