Partner
Norton Rose Fulbright US LLP
Steven Lofchie is a Partner based in New York. He advises financial institutions and corporate clients on the securities laws and the Commodity Exchange Act, with particular focus on the regulation of broker-dealers, swap dealers, investment funds and other market intermediaries. Steven's transactional practice focuses on securities credit and derivative transactions.
Recent Articles & Comments
Commissioner Gensler states that the rule changes are consistent with Congressional intent. That assertion seems curious; as the proposing release observes, the securities markets of 2022 don't much resemble the securities markets of 1934.
The proposing release is very short as to the benefits that the expanded definitions would provide. The primary benefit to which the SEC points is that the registration of more firms would allow the SEC to collect more data…
The big issue is whether the clearing organization has enough resources to cover potential losses from defaulting customers. The in the CFTC's request for comments are instructive in illustrating how the CFTC thinks about default risk at a clearing organization.
The requirement that a lending platform retain full recourse on the debt seems inconsistent with the concept of "peer-to-peer" lending. (See this of the product.) Leaving aside the obligation for a lending platform to retain full recourse, this proposal may wind up killing the product rather than regulating it.
Oddly, most of the have been brought, not against broker-dealers, but against employees who stole customer information.